Sales Funnel
Definition
The journey potential customers take from first discovering your business to making a purchase. Shaped like a funnel because fewer people reach each stage.
What is a Sales Funnel?
A sales funnel represents the journey customers take from awareness to purchase. It's called a funnel because many people enter at the top (awareness), but fewer make it through each stage to the bottom (purchase).
Sales Funnel Stages
Awareness (Top)
People discover your business exists. They might find you through:
- Search engines
- Social media
- Advertising
- Word of mouth
Interest (Upper-Middle)
They explore what you offer. They're reading your website, comparing options, learning more.
Consideration (Lower-Middle)
They're seriously evaluating you as an option. Reading reviews, checking prices, maybe making contact.
Decision (Bottom)
They become a customer. They've chosen you over alternatives.
Retention (Post-Funnel)
Keeping customers happy so they return and refer others.
Why Funnels Matter
Identify Leaks
Where are people dropping off? Fix those stages.
Appropriate Messaging
Someone in awareness needs different content than someone ready to buy.
Measure Effectiveness
Track conversion rates between stages.
Focus Resources
Put effort where it has most impact.
Improving Your Funnel
Awareness
More traffic, better targeting, increased visibility.
Interest
Compelling content, clear value proposition.
Consideration
Social proof, case studies, easy contact.
Decision
Clear pricing, simple buying process, risk reduction (guarantees).
Simple Funnel Example
For a local service business:
- Someone searches "electrician Exeter"
- They find your website (awareness)
- They read your services page (interest)
- They check reviews and testimonials (consideration)
- They fill out your contact form (decision)
Each stage loses people. Optimise each to improve conversions.