Whether you dedicate yourself to digital marketing or are thinking of entering this world, there is a concept that you should know like the back of your hand: the sales funnel . In this article we will tell you a little more about what a funnel is, how it works and why it is key in your marketing and sales strategy.
What is a sales funnel? What does funnel mean?
Before, a distinction. ✋
Funnel is the Anglicism used to name what in Spanish is known as “ funnel ”.
Put this way, the sales funnel, also called sales funnel —And in omore particular cases called a sales tunnel – is the way youA company establishes the different points of contact with its users from the moment it reaches the business, until the moment it sells.
Not sooo long ago we talked about the conversion funnel . No, we do not forget: there is a difference that separates the conversion funnel from the sales funnel. The sales funnel records the steps that the user goes through until the sale or payment of a service or product is made.
The conversion funnelInstead, it identifies all intermediate events that can be considered as conversion. It can be a registration, the installation of an application, the download of software or what your brand considers that is not, precisely, a sale.
What is a sales funnel for?
As we already told you -and as you can imagine-, the sales funnel has a very clear objective: to sell. However, the path to this goal is marked by more specific goals that are part of the final goal.
- Solve a need of your users. There is no possibility of selling if there is no real interest in offering something to our clients and adding value to them. This contribution usually occurs, for example, if we provide them with content that responds to their queries, fears or wishes.
- Build trust. The pandemic has heightened the need for brands to be – and show themselves – trustworthy. It’s not just about providing a service or product, it’s about building links.
- Reduce costs. Knowing in advance the stages that the user goes through before buying will allow your company to anticipate decisions, reducing the cost of acquisition per customer.
- Strengthen the relationship with the commercial team. The sales funnel, in addition to being an ally of the marketing team to know what actions to take, is essential for the sales team, since in addition to using this tool to improve their conversation with users, it nourishes the funnel thanks to its knowledge.
Phases and strategies for your sales funnel
Unlike the conversion funnel , where we can identify the stages where the user is standing in relation to our brand – Top of funnel, Middle of funnel and bottom of funnel – the sales funnel seeks to understand the stages of the sale in a strategy omnichannel. And although there are several ways to build this funnel, this is usually the most used:
Initial contact (brand awareness)
As in Upper Funnel or Top of Funnel, at this stage of the sales funnel, the contact will surely be unaware of the existence of your business or have not considered the possibility that your product or service would solve their need (it is even very likely! that neither he himself knew that he had that problem or desire! ) .
It is, in this phase the objective is to make a first contact with the user so that he knows us. Social Networks, Online Advertising, SEO, Events, Webinars, Press, etc. are just some of the sources.
You have done a great job so far! Users have already been impacted by your brand and can recognize it. However, this is not enough. Now you must generate leads, converting users into traffic, obtaining at least the main contact information: Name, email and a telephone number.
In this phase, the mouth of the funnel has a large number of prospects, many of which will have different states of interest, the most advisable thing is to appeal to marketing automation for their qualification.
Have you considered, for example, a welcome sequence with email marketing for your new prospects? Did you leave your data in a banner pop up of your site? In this case, the recommendation is to start with a greeting and provide more information and details about your business.
Or do we better call this stage “comparison”?
In this instance, the user is still not convinced if your business will be the best option for their desire or problem. And for this reason, it is very likely that you are looking at multiple alternatives.
However, there is good news! Impacting the user at this stage is easier than before: You already know who he is, what he is interested in and how to reach him. Take advantage of these tools to drive the consumer through the sales funnel.
At this stage, we recommend incorporating elements that generate an omnichannel experience and personal. That is, where the user is impacted by a congruent message through one or more channels, where they receive from us a response to their doubts, wishes or fears.
In this step, an email marketing sequence could be a great ally to reach the sale. These are some content that you can share through this channel:
- Exclusive promotions and discounts
- Benefits of your product, service or company
- The questions most asked by other users
- Case studies (Also called “successful”)
You’ve got it! Your arguments have been convincing and Your value proposition has been superior to that of the competition. In this instance, the user is already willing to buy from you. It only remains for me to do so.
Only a minority% reaches this stage of your sales funnel and there is still a small margin for error. Even in the best strategies, there is a cart abandonment rate of around 70%. And this is where we must be prepared.
To increase the chances of making the sale, we suggest you use two very effective tools: Email Marketing and WhatsApp.
Prepare sequenced communications that can resolve customer doubts – still potential – is undoubtedly an excellent strategy. Here, our recommendation is to create one or more E-mail Marketing campaigns integrated in such a way that a trigger is fired when a user decides to abandon the purchase.
In these emails it is possible to include information about the product or service that was to be purchased, to emphasize the benefit lost by not buying it or testimonials from other buyers (in case the problem lies in trust)
Undoubtedly one of the great communication channels of recent years: WhatsApp. Start a conversation with the potential buyer of your product or service through this channel It is a way to understand the fears and frustrations that led to discouraging the acquisition, but it is also a great opportunity to provide personalized attention.
In this case, a simple hello and question can completely change the picture. Check out this example!
Seller : Hello, name. How do you feel? I have seen that you have not been able to complete your purchase of XXXXXXXXXXXXX. Can I help you with anything?
Now yes. Finally. You have sold! And while this is a wonderful result, there is still more to do in the sales funnel. This funnel does not end a Once the sale has been made and the user has his purchase in his hands. Let’s analyze why.
In the retention stage, the objective is that those who have already bought from us choose us again and recommend our business to others, for that it is important that you know their experience: here you can implement NPS surveys .
A fact that maybe you did not know A satisfied buyer is 9 more likely to buy again from us ( which positively affects our costs per sale) .
If you offer a product or service by subscription for example, and you have to send monthly notifications such as payment documentation or updates, then an automated SMS marketing or push notifications strategy is the ideal option.
For this reason, In this instance, the recommendation is to focus efforts on after-sales. That is, continuing the link with the potential client according to what we understand is of value to him —This thanks to the information we already have about the person-, resulted in a more positive experience with our brand.
Conversion Funnel FAQ
What does funnel mean?
Funnel is the Anglicism used to name what in Spanish is known as “funnel”
What is Marketing Funnel?
Marketing funnel is the way in which a company establishes the different points of contact with its users at each stage of the sales process to develop a strategy adapted to each moment.
How does a funnel work?
A funnel works with the logic of an inverted triangle, that is, the value action (sale or conversion), is one of the last steps of the pyramid and graphically the narrowest. In this way, there is a parallel between the number of users who participate in each stage, in order to establish and improve metrics.
What is Upper Funnel?
Upper Funell It is the widest and upper part of our funnel. It tries to reach as many people as possible, and then work to refine their interest and make the conversion more concrete.