A sales funnel is a model that describes the journey a customer goes through when considering and purchasing a product or service. The funnel typically starts with a wide top, representing the initial potential customer base, and then narrows as customers move further down the funnel and closer to making a purchase. The stages of a typical sales funnel include:
Awareness: The customer becomes aware of the product or service and begins to explore their options.
Interest: The customer expresses interest in the product or service and wants to learn more about it.
Evaluation: The customer evaluates the product or service and compares it to alternatives.
Purchase: The customer makes a purchase and becomes a customer.
Retention: The customer continues to use and potentially repurchases the product or service.
Advocacy: The customer recommends the product or service to others.
Marketing and sales teams use the sales funnel model to understand the needs and behaviors of potential customers at each stage, and to develop strategies and tactics to move them further down the funnel towards a purchase.