What is a Sales Funnel?

what is a sales funnel studio la luna

You have a great product or service. You’ve launched a beautiful, modern website. But you haven’t seen the sales you expected to receive.

It may be time to examine and optimise your sales funnel!

Continue reading to learn more about the sales funnel, why it’s important, and how to optimise it to increase sales.

What is a Sales Funnel and Why is it Important?

A sales funnel is a visual representation of the purchasing journey a customer takes when browsing your site, adding items to their cart, and (hopefully) completing the checkout process.

In addition to the name sales funnel, the process is also referred to as a marketing funnel or a revenue funnel.

Learning about the sales funnel, as well as examining and optimising your own funnel, can help boost your sales and conversions. It is an invaluable process and tool that will allow you to identify possible improvements within your customer journey and/or capitalise off of the areas that are currently working well.

Overall, the purpose of a sales funnel is to ensure the customer moves from top to bottom – lead to conversion – easily. A smooth sales funnel builds trust with the customer to secure a purchase.

It can even encourage the customer to become an unofficial ambassador and share their positive experience with their network – which will help boost your business as well.

Sales Funnel Breakdown

Now that you have an understanding of what a sales funnel is and why it’s important, let’s take a closer look at the stages within the funnel.

There are many ways to break down the sales funnel, however, most agree that there are three main stages: awareness, consideration, and purchase.

sales funnel breakdown

Awareness

Just like the name suggests, awareness is the customer discovery process of the purchasing journey. Because of a need they want to fulfill, their search on the internet has made them aware of your site.

This awareness could come from a simple Google search, social media marketing, or even an email campaign. This is the top of the funnel as it has the most prospective customers.

Consideration

Once prospective customers discover your business and navigate to your site, they will browse your content to determine if your organization fulfills their need. This stage includes everything from the prospect exploring your site for more information, requesting more information from you, and even reviewing the sites of your competitors to weigh their options. As prospective customers move from awareness to consideration, their numbers will decrease.

Purchase

Though it’s the smallest part in the funnel, it’s the most important piece – the purchase. After exploring your website, possibly asking questions, and checking out the competition, they have decided if they will purchase from you or not.

Optimizing Your Sales Funnel

In each stage of the process, there are tactics you can deploy to optimise your sales funnel to increase the number of prospective customers traveling to the purchasing stage. Let’s explore a few:

Lead Magnet

A lead magnet is a helpful, yet non-resource intensive, “free” offer that gives the prospective customer more information to make a purchasing decision.

Most lead magnets request simple contact information from the prospect in exchange for the free offer. This allows you to capture their contact information for future email campaigns and offers.

Depending on your business, a lead magnet can be a mini course, ebook, whitepaper, free product sample, free trial subscription, or demo.

Tripwire or Low-Value Offer

Similar to a lead magnet, a tripwire or low-value offer is a too good to be true offer that gives prospective customers close to or the full experience without having to make a big purchase.

If they engaged with the lead magnet but still have not made a purchase, a tripwire may help them see the full value of your service or product without the risk of a full purchase.

The hope is that by giving them a window into your full offerings, they will convert to a regular customer after seeing the added value of your business.

Short-Form Sales Page

In addition to giving prospective customers free offers and/or discounted services, you can also craft engaging, dynamic sales pages to give key information to help encourage a purchase.

These pages can be helpful to all prospective customers but are especially helpful to those who are already familiar with your business and are in the final stages of the sales funnel.

Short-form sales pages are 500 words or less with short sentences and/or bullet points that highlight the main features of the product or service. It may also have graphics, product images, a video, or other media elements to help showcase its value.

Mid-to-Long Form Sales Page

Like the short-form page, mid-to-long form sales pages are longer pages that give prospective customers in-depth, detailed information on a product or service to hopefully secure their purchase.

In addition, these pages will have more data-driven content like case studies, usage stats, success stories, etc., to prove how a product or service has helped other businesses achieve their goals.

 

Great news! Studio La luna now offers effective, beautifully designed, branded sales pages to help engage your visitors and boost your conversions. Learn more about our sales page packages to increase your revenue!

Hey, I’m Lillie

I am a website and UX designer based in Brisbane, Australia, but work with women in business worldwide. I am a coffee addict, art and interior design lover and all-round creative. I live with my little family of 3 in our cute little 70’s style bungalow.

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