Over the last decade, online marketing has undergone significant development, and user experience has become one of the key factors influencing customers’ purchasing decisions.

Today, potential buyers have numerous options and can choose any product or service from many companies. Therefore, it is essential to make extra efforts to engage them and draw them into the purchasing process, turning them into actual customers. This is where the sales funnel comes into play.

But what is a sales funnel? How does it function? And how can you create one for your business?

In this article, we will explore the sales funnel in detail so you can attract more relevant customers and effectively increase your sales.

What is a sales funnel?

A sales funnel is the process through which a potential customer moves on their way to making a purchase. It is divided into several stages: the top (TOFU), middle (MOFU), and bottom (BOFU), from attracting attention to making a purchasing decision.

The sales funnel helps manage potential customers easily. It allows you to avoid losing important deals and understand at which stage a customer might “drop out” of the sales process. This enables timely responses and keeps the customer engaged.

The sales funnel consists of four key stages: awareness, interest, decision, and action, which can be grouped under the acronym AIDA (Attention, Interest, Desire, Action). These stages are divided into three main categories:

1. The beginning of the process: How can potential customers find you?

2. The middle of the process: How do people learn more about your business?

3. The final stage: Why should customers choose you for their purchase?

How does the sales funnel work?

The AIDA sales funnel model consists of several stages:

1. Awareness: At this stage, you are building your brand recognition. Your goal is to capture the attention of potential customers and generate interest in your business by providing content that showcases your products or services as a solution to a specific problem.

• Channels for achieving awareness may include:

• Social media
• Events
• Websites
• Paid advertising

2. Interest: At this stage, you increase interest in the benefits of your offering. The customer already has basic knowledge about you and starts actively inquiring about your products or services. Your task is to maintain and enhance this interest.

• Channels for developing interest may include:

• E-books
• Newsletters
• Analytical materials
• Webinars

3. Decision: This stage may also be referred to as “desire.” The customer begins to crave your solution, and your task is to maintain this desire. If you successfully passed the previous stages, the customer will be ready to choose you.

• Channels for the decision-making stage may include:

• Inquiry forms
• Sales department phone calls
• Targeted emails showcasing other customers’ testimonials

4. Action: At this stage, your call to action encourages the customer to take specific actions resulting from their decision. This is where conversions happen, which may include transitioning from a free trial to a paid subscription, purchasing a product, or subscribing to your services.

• Channels for the action stage may include:

• A physical store or office where the customer can come to buy your product or service
• Online checkout, where the customer can purchase the product over the internet

 

Why is it important to build a sales funnel?

Creating a sales funnel is crucial for optimizing resources and increasing conversions. It not only improves interactions with potential customers but also automates many processes, significantly saving your team’s time.

NovaTalks is an omnichannel contact center that enhances the effectiveness of the sales funnel by utilizing the following capabilities:

• Chatbots: Easy setup of chatbots for automating communication with customers, allowing for quick responses to inquiries.
• Analytics: Historical and online reporting helps track progress at each stage of the funnel.
• IVR and automated responses: Ensure prompt replies to inquiries, enhancing customer satisfaction.
• Service quality assessment: Collecting customer feedback for further process improvement.
• Segmentation of inquiries: Allows for more efficient organization of the contact database, leading to more targeted communication.

By investing in automation through NovaTalks, you can not only increase conversions but also ensure a high level of support at all stages of the sales funnel!

 

How to create an effective sales funnel

Creating a sales funnel requires a clear understanding of your audience. Here are some key steps to help you in this process:

1. Identify customer needs. Understanding their problems and expectations is the foundation for formulating attractive offers.

2. Set goals. Clearly define what you want to achieve: increasing leads, subscriptions, or sales. This will help measure success at each stage.

3. Create an appealing offer. Attract potential customers through free trials or valuable materials in exchange for their contact details.

4. Qualify leads. Determine which potential customers genuinely fit your company to focus on the most interested ones.

5. Maintain communication. Use various communication channels for active dialogue to nudge customers towards a purchasing decision.

6. Close the deal. Stay in touch even if the customer hasn’t made a purchase, to maintain their loyalty.

7. Analyze results. Track conversion metrics and optimize your funnel based on the data collected.

An effective sales funnel can significantly increase conversions and ensure long-term customer loyalty.

 

Example of a successful sales funnel: Netflix

Netflix is a leader in the streaming video space, as of the second quarter of 2024, Netflix had approximately 277.65 million paid subscribers worldwide. This indicates growth of over eight million compared to the previous quarter. Most Netflix subscribers are located in the EMEA region (Europe, the Middle East, and Africa), which accounts for nearly 94 million of the platform’s total global subscribers. Their sales funnel is distinguished by its simplicity and effectiveness.

Key stages of the Netflix sales funnel:

1. Homepage: Clearly states that subscription can be canceled at any time, reducing risks for users.

2. Pricing page: Easy navigation to the pricing section, where the Premium plan is offered by default, with the option to downgrade.

3. Payment methods: Various payment options, including gift cards, credit cards, and PayPal, making the purchasing process convenient.

4. Security and support: Attention to data protection and the ability to contact customer support, including by phone, enhancing trust. 

Why is Netflix’s funnel effective? 

• Transparency: Minimal complex information with clear answers to consumer questions.
• Brand strength: High recognition and trust in the brand, which helps attract new subscribers.
• Flexibility: The option to cancel subscriptions anytime leads to a sense of safety.
• Broad payment options: Provides ease in making payments.
• Active support: Keeps users engaged by addressing their questions in a timely manner.

By analyzing this example, you can understand how an effective sales funnel not only increases conversions but also helps build long-term loyalty.

Sales Funnel: Technologies to Increase Efficiency

Creating a sales funnel can be a challenging task without the appropriate software. By selecting the necessary tools, you can automate many processes, enhancing your customers’ experience and saving time and money in the long run. An effective sales funnel is fundamental for the growth of your business, as it helps structure the customer acquisition process, automate routine tasks, and improve conversions, which directly impacts your profits.

Monitor how customers progress through the various stages of your funnel as they approach a purchase, and ask yourself if there are areas that can be improved for better results. We hope our recommendations will help you attract customers more effectively and continuously increase revenue. Onward to new achievements!