What is Sales Funnel and Why Do You Need One?

In 2021, you would have probably heard of "Sales Funnel." You might even click on Facebook Ads and notice the landing page with an opt-in form. At the bottom of the landing page, you would see a blue branding "ClickFunnels."

But, what is a Sales Funnel? Why do I need a Sales Funnel when I have a website?

What is a sales funnel?

A sales funnel is the route that website visitors take to reach the final destination of buying products or services. It includes a Sales page or a Landing page, an Upsell page, and a "Thank You" page (business2community.com).

Sales Funnel includes a Sales Page, an Upsell page and a Thank You page.

Sales funnels have become increasingly popular in recent years because when you build a highly engaging funnel with brand storytelling and copywriting, you could encourage your target audience to give you additional information about them like their email address easily which can be used later on to promote other offers.

They are made up of one initial step (the Sales Page) that leads them through pages until they are ready to buy, with each new set of steps being promoted with an offer at the end of every single one. This strategy has been proven most effective when combined with automated emails in order.

However, you might think that "Marketing Funnel is equivalent to "Sales Funnel." Make no mistake. Although both have the "funnel" work, there is a fine line between "Marketing Sales Funnel" and "Sales Funnel."

To better explain the difference between these two funnels, TrackMaven has made a detailed presentation of a marketing funnel and sales funnel. As you can see, the sales funnel is at the most bottom part of a marketing funnel.

Image Credit: www.skyword.com

In short, a marketing funnel is a whole journey from a consumer being aware of your company and all the way to become a loyal customer. A marketing funnel involves running paid advertising, doing SEO, sending email sequences, etc.

An Example about Marketing Funnel

Awareness Stage

One day, Alex was walking and doing some window shopping on the busy Orchard Road. When your "Clearance Sale" sign caught his eyes, he decided to step inside your store to check out what you had on sale.

Interest Stage

Alex's mouth dropped when he saw the new PS5. He had always dreamed of owning one, and now it was finally in his grasp. The VR experience took him to a whole other dimension, where nothing else mattered but playing this game.

Decision Stage

Alex started to evaluate the purchase because his budget was tight. He happily agreed to take the offer when you offered him an option for a 3-month split payment plan with no interest in the store. Nonetheless, he remembered how much of a relief it was when you offered him three years of care warranty as well!

Action Stage

Alex reached the bottom of the funnel when he made the payment (crazyegg.com). You invited Alex to sign up to be your affiliate, and every time he refers you to new customers, you would reward him a commission. And that's your whole customer buying journey.

In essence, every business does have marketing funnels no matter it's a retail store or an online business. On the other hand, a well-defined sales funnel is the route that customer journey from leads into customers. It's similar to the marketing funnel, except it happens online!

For instance, they need to start at your initial sales page, which you can use as a lead generation tool, and then they work their way through your upsells and thank you pages. At each point, you are trying to get them closer and closer to making a purchase by providing more information about what they will get with the product or service.

Why do you need one?

Generates Leads Easily  

When you asked, "Why do you need a sales funnel," the very first question you might have in your mind is about the difference between a sales funnel and a website. To find the answer to this question, you could ask yourself,

Can your website generates leads easily for your business?

Advergreen Digital has audited many websites. Unfortunately, most of the website owners made a common mistake: their website has become only an online brochure.

They whacked up a website in 30 minutes with WordPress or hired a designer who has never written a sales copy. What happened next was you could have a cute website but generating low conversion rates.

Instead, when you build an effective sales funnel, the first thing you will think about is how to encourage your website visitors to opt-in your form? With this conversion goal in mind, you will automatically think of words that could attract your potential customers' attention.

Sales Funnel should be - FRICTIONLESS in lead generation. 

At Advergreen Digital, we could generate new leads quickly and organically without any marketing activities such as paid advertising or blog posts. Sounds fantastic as it is; we also don't have the problems of getting fake email addresses because that should be how we take advantage of "digital" in "marketing" our services and products.

Works as Your Dedicated Sales Team

Did you know your funnel can work as your dedicated sales reps even while you're sleeping? Most business owners have great products or services, but they didn't leverage the marketing automation tools to ease their customers' buying process.

When your potential customers opt-in to your form or newsletters, they're entering your second stage of funnel. During this sales stage, your sales team has their information to follow up with the prospects to learn more about their needs and challenges (act.com).

While you can make sales calls to help your prospects in their buying decision, you also can set up email marketing automation to nurture them with valuable content. According to leadiro.com, sales reps hit quota 9% more often when lead nurturing takes place. You shorten the sales cycle when your prospects see you as an authority.

man looking at marketing analytics
Photo by Adeolu Eletu / Unsplash

You could get email marketing automation software like Active Campaign, Klaviyo, ConvertKit, etc to set up your automated email follow-up campaign. We have tested several tools such as MailerLite, Kirim Email, Automizy, but nothing beats ConvertKit for email deliverability and automation.

A powerful automation must be more than just an autoresponder. An excellent automation will help you sound more humanized in your sales emails, and based on the customer segment. With the right words you write that speak directly to the objection, you could close more sales opportunities even without an actual human. (keap.com).

How does it work?

By the time you reach this point in the article, you should have grasped the marketing terms of "Marketing Funnel" and "Sales Funnel" because they work best when combined.

While you may have a website, you could also build a sales funnel for your business. A traditional website often leads your visitors down many different avenues, which can confuse them and make them less likely to purchase from you.

On the other hand, a sales funnel is laser-focused in order to drive conversions and only has one clear call-to-action for maximum engagement rate. In Singapore, most business owners would use sales funnel for their marketing campaigns, especially in Facebook Ads.

Use Pareto Principle

At Advergreen Digital, we help our clients find out their 20% of products or services that bring them 80% of the revenues. Pareto principle is a good marketing strategy because once you sorted out what's important to you, you save time and money in your marketing efforts and sales process.

Find Ideal Customer Profile

After that, you could figure out your ideal customer profile. For example, who would be your Dream 100 that would buy from you? You could ease your sales efforts when it comes to content marketing or targeting prospective customers on paid advertising.

Generate A Marketing Funnel Strategy

Next, you could brainstorm and generate a marketing funnel strategy or map out your business model. Questions like how you want to drive traffic to your funnel, what you want to offer your target customer, and what marketing channel to follow up with them are critical to determining your success rate.

In our Free Sales Funnel E-book, we have shared an in-depth guide of five types of funnels that you can apply directly in your business. If you're selling high-ticket products or services, you might end up using Webinar for your product demo in your second stage of funnel.

In Conclusion

"Sales Funnel" isn't that difficult to understand even though you could find thousand of meaning online, and people always get confused about it and the "Marketing Funnel."

What is Sales Funnel? In simple words, a sales funnel has a Sales page, and Upsell page, and a "Thank You" page. To elaborate further, it is also the marketing strategy that business owners or marketers use to lead their website visitors step-by-step to a painless checkout page.

You would ask, how many steps? Well, it would depend on your products or services. The higher the ticket of your products or services, the more steps it would involve influencing the purchase decision.

After all, you should understand your sales pipelines and the sales funnel stages, such as A.I.D.A (Awareness > Interest > Decision > Action). When you understand the sales funnel process, you could refine it and make it a reliable cash-printing machine.

Photo by Andre Hunter / Unsplash

To get a sales funnel that converts, you need a one-stop funnel solutions from a funnel marketing agency. However, you could get all those at Advergreen Digital. At Advergreen Digital, we provide you all the tools, content, and traffic. All you need to do is sell. Let's skyrocket your business today with Storytelling Sales Funnel!

Gideon Leong

Gideon Leong