The decision to finalize a transaction is preceded by a series of steps the customer must complete to reach their goal: purchasing a product that meets their needs. The individual stages of this process are captured by the sales funnel. What is it, why, and how to use it? Read on!
Achieving business success requires thoughtful action and skillful use of tools that enable scalability. One of these is the sales funnel – the star of this publication . Before we present an example of a sales funnel and explain why it's so crucial to company growth, first a pinch of essential theory.
Sales funnel – what is it?
What is a sales funnel? It's simply a sales process presented in the form of an inverted pyramid.
Sales are the result of how we advertise a product, how well we build interest in a potential customer, and how well we understand their needs. A sales funnel is a complex and effective technique that enables audience segmentation (lead classification), marketing planning, and sales forecasting. Building a sales funnel captures the individual steps a customer takes, from their first contact with a brand to making a purchase. This applies to every stage of the sales process.
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Each subsequent level (which is determined individually by the company) allows us to narrow down our potential customer base. At the very bottom of the funnel, we capture those ready to purchase the solution we offer.
The conversion funnel is a visualization of the individual stages of the process, the finale of which – closing the sale – depends on the promotional and marketing activities undertaken.
>> Find out how to increase your conversion rate <<
How to use sales funnels?
Now that we know what a sales funnel (marketing funnel) is, let's explain why it's worth creating. In short, it's the foundation for a well-thought-out promotional strategy and a way to increase conversion rates. Detailed sales funnel development and lead classification (based on their purchasing stage) allow us to ask the right questions and provide equally relevant answers that awaken needs, build our expert image, and encourage the recipient to say, "I'M BUYING!" A sales funnel is incredibly helpful in understanding the differences between customers at different levels and standardizing activities for salespeople.
The funnel will allow us to determine the most appropriate methods and tools to increase the chances of acquiring customers, precisely tailored to their expectations at every stage of the customer journey. A marketing funnel optimizes the process, saves time and resources, and maximizes profits from each potential customer.
How to create a sales funnel?
A sales funnel takes the form of an inverted pyramid. There are two types, each differing in the strategy for acquiring a potential customer, the definition of the target group, and ultimately the form of the message we deliver to them.
Shopping funnel – types
- Conversion funnel wide – aims to reach the widest possible audience and increase lead generation. Most of these leads won't become brand customers, but by directing the message to a very large audience, the chances of reaching those who will ultimately decide to make a purchase are increased.
- Narrow conversion funnel – appealing to a more specific audience. Their group is narrower than in the case of a wide funnel; the message reaches those initially (or potentially) interested in the product being offered.
3 stages of the sales funnel – ToFu, MoFu, BoFu
There are three categories of sales funnel:
- ToFu (Top of the Funnel) – top of the funnel. At this stage of the funnel, the most important thing is to attract traffic through the activities undertaken (paid and unpaid). We can focus on offering substantively rich content, focus on generating interest in the product during conferences, or by making so-called "cold calls." It's also worth considering positioning and investing in paid campaignsThis will help our audience increase brand awareness.
- MoFu (Middle of the Funnel) – middle part of the funnel. This is where a potential buyer from the top of the funnel "drops in," aware that using a given solution can bring benefits. These aroused needs motivate them to learn more about available solutions and compare competitive offerings. What can you do to win? Gain trust! As we know, without trust, there's no sale. At this stage, it's useful to direct recipients to dedicated landing pages, send emails with offer details, and clearly explain the benefits of purchasing a given solution. This is well-thought-out content marketing that increases the chances of acquiring potential customers.
- BoFu (Bottom of the Funnel) – bottom of the funnel. At this stage of the sales funnel, interested consumers are one step away from making a purchase. How can we persuade them to buy? We can leverage social proof (reviews, ratings, success stories) or offer price bonuses.
If marketing efforts targeting potential bottom-of-the-funnel customers yield the desired results, you can start the fanfare – the purchasing process has been completed! Simple payment methods and a thank-you message for placing an order will be effective here.
Making a purchase, however, isn't the end of the sales process and the marketing department's work. It's worth taking steps to maintain customer interest, build brand loyalty, and encourage subsequent (satisfying!) purchases. This means emphasizing post-sales service.
Remember!
Sales are based on trust and affection. These are the foundation of your sales funnel, regardless of the stage your recipient is in. Tailor your message to their needs and sensitively build a valuable relationship with your customer. All sales pages will benefit – the proof will be your increasing conversion rate!
Not everyone will be your customer
Even a precisely crafted conversion funnel doesn't guarantee that someone who enters it will "fly" through all the stages and ultimately emerge as a loyal customer. As they learn about your brand and increase awareness, the recipient may decide to abandon building a relationship. This is normal. Data analysis will help you understand which stage you're most likely to fail at, allowing you to take corrective action.
For example, you could consider remarketing. This works at every stage of the funnel, but the more specific your audience is, the more important it becomes. Sealing your funnel pays off!
Sales funnel – application examples
Every company is different and has its own unique sales method. Is it working? Perhaps it needs some refinement? The sales funnel will provide the answer. How can you properly build it and accurately represent the sales process?
How to make a sales funnel?
Do you know what the top of the funnel looks like? How many calls result in an offer being sent? How many prospects actually view the submitted material? Or are salespeople skipping follow-up? Who decides to buy, and where does the initially intrigued recipient "pass"? How many customers stay with you long-term and decide to make further purchases?
By answering these questions, you can systematize your sales and establish operational standards. This will allow your sales rep to understand, among other things, how many calls they need to make to close a deal. And you'll be more likely to achieve your monthly sales goals.
If you want to learn how to easily move to the next stage of the funnel and communicate with your audience to increase the chances of converting them into customers, read this interview with Krzysztof Rzepkowski, CEO of Sandler Training Polska ! This comprehensive article on sales psychology explains how customer acquisition and effective customer communication should proceed. This influences the entire sales process!
Using CRM at different stages of the funnel
Developing and implementing a funnel is one thing, but analyzing the collected data is another! This allows us to optimize the sales process and increase profits. One tool that allows us to fully utilize the power of every contact is a CRM system.
This will help us identify which stages of the sales process require improvement. If a potential customer frequently drops out of the funnel when submitting an offer, it's worth checking whether the materials being sent, their presentation, and their pricing align with the recipients' needs.
HubSpot also enables segmentation of individual sales stages, data collection, and purchase funnel management. The tool allows you to flexibly map your company's operations and leverage the power of automation to streamline operations and shorten the time required for quality customer service.
Google Analytics will also be useful for keeping your finger on the pulse of your sales . It will help you learn, among other things:
Ongoing analysis of collected data is the basis for determining corrective measures and also for forecasting future sales. If you don't know what monthly results to expect, it's difficult to budget!
Frequently asked questions about the sales funnel
A sales funnel is a graphical and conceptual visualization of the path a potential customer takes – from the moment they first learn about your company, to the moment they make a purchasing decision and complete the transaction.
The shape of the funnel perfectly reflects the natural selection of users in the sales process. At the very top (wide outlet), the reach of advertising is enormous and reaches many people. However, as you progress to the next steps, some users drop out. Only the most determined ones reach the bottom (narrow outlet), who actually become your customers.
The traditional marketing and sales funnel is divided into:
- TOFU (Top of the Funnel): Building awareness. A customer learns about a company or becomes aware of a problem.
- MOFU (Middle of the Funnel): Education and consideration. The user researches solutions, compares offers, and interacts with the brand (e.g., signs up for a newsletter).
- BOFU (Bottom of the Funnel): The decision and closing of the sale. The customer is ready to buy and selects a specific product or service.
Imagine an online store selling coffee machines:
- Step 1 (TOFU): A user types “what coffee machine to choose” into Google and lands on your optimized blog article.
- Step 2 (MOFU): In the article, he sees a banner: "Download a free espresso machine care guide and get a 5% discount." He provides his email address.
- Step 3 (MOFU/BOFU): Over the next few days, you send him emails with customer reviews, video tests, and model comparisons.
- Step 4 (BOFU): The convinced user clicks on the link in the email, goes to the cart and purchases the selected coffee machine.
These are the moments when customers abandon the process en masse (e.g., they add a product to their cart but don't complete the transaction). Identifying these points (e.g., using Google Analytics) allows for process optimization. Fixes might include simplifying the order form, adding free shipping, introducing quick checkout, or launching abandoned cart campaigns (remarketing).
Above all, it helps you stop blindly selling. It lets you know at which stage you're losing the most customers, allows you to precisely measure return on investment (ROI), and tailor your advertising messages to the customer's current state of knowledge—you're not immediately offering an expensive purchase to someone who's seeing your brand for the first time.
Summary
The above article covers the following topics:
- A sales funnel is a sales process in the form of an inverted pyramid that captures the customer's steps from the first contact with the brand to the purchase.
- Using a funnel allows you to optimize the process, save time and resources, and maximize profits by selecting the right methods and tools.
- The funnel types are wide for maximum lead generation from a large audience and narrow for specific recipients initially interested in the product.
- The stages of the funnel are ToFu attracting traffic through content and campaigns, MoFu building trust through landing pages and emails, and BoFu finalizing the purchase through reviews and price bonuses.
- Funnel analysis via CRM and Google Analytics allows you to identify stages requiring improvement, optimize the sales process, forecast results and manage your budget.
