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Importance of Sales Funnel in a Business

Each stage of the sale has an impact on consumer behaviour. These steps are known as the sales funnel, and if you are a business owner, you need to learn them. By knowing each stage, you can use tactics to increase the number of people moving from one stage of the sales funnel to the next. You can also use an ERP software to helps you to streamline your business processes and drive your company’s growth significantly. Of course, this can have a huge impact on your business. Defining and managing your sales funnel is one of the most powerful concepts in business. This article will discuss the sales funnel, from its understanding to strategies for building the right.

Sales Funnel

Daftar Isi

What is a Sales Funnel?

The sales funnel is an easy way to visualize the customer journey of the sales process. This customer journey process usually makes the customer realize that they need the product and eventually buy it. This journey process is known as the sales funnel. This sales funnel can explain how any sale that starts with many leads ends up with fewer buyers. Of course, with the aim that through this sales funnel, you can direct buyers to get interested in the promos you offer until closing or purchasing.

Currently, the sales stage is getting longer. Buyers choose products that are currently circulating through applications, social media, websites, or other platforms without having to meet directly with the seller. By choosing a product based on an existing advertisement, they will see the product details if a potential customer is interested. Then a sales agreement is made by placing an order from the buyer. That’s why the Sales Funnel plays an important role to support the success of a business.

The value of Sales Funnel is a well-built one that can:

  • Define stages of the process sales funnel clear and consistent, which can reflect your customer journey and support these customers at every stage.
  • Communicate clearly across sales, marketing and other management departments towards a common sales vision. Most teams Sales Funnel have daily or weekly calls to review how fast or how much they are progressing.
  • Forecasting future sales revenues with a much higher level of accuracy when compared to those carried out without stages Sales Funnel clearer.

Why Are Sales Funnels Important?

Getting good results from each potential customer is also difficult. Why? because 79% of the marketing leads are declared failed when they want to go to the transaction or purchase action. This means there are a lot of missed opportunities because potential prospects need more support.

Your sales funnel describes the path your prospect or prospect takes. Understanding the steps can help you find gaps at each step you need to develop, where those leads will disappear and never convert. If you don’t understand your business’s sales funnel, you can’t optimize it.

Stages Sales Funnel

Basically, marketing funnels are all about studying the customer steps before buying the products each business offers. Therefore, you need to position yourself as a customer before creating a pleasant customer experience through the concept marketing funnel

The following are marketing steps that you can take using the sales funnel, including:

Awareness

The first stage of the marketing funnel is one of the most important things in the sales funnel. Potential customers are likely to have a need or problem that they have. They will look for solutions through social media, advertising, Google searches, and other means. From the media, you can find out what happens to prospects. 

Once you know the problem, create engaging content that solves the customer’s problem. Then, you can offer a product or service for the problem, so that customers are interested in buying. Generating the interest of potential buyers in the first stage of the sales funnel is useful for building a solid relationship with them. One of the best ways to build strong relationships with channel buyers is to use a customer relationship management system or CRM.

Interest

The second step of the sales funnel is generating interest and interest. When a potential buyer has shown an interest in your product or service. Next, you need to “train” potential buyers to continue accessing your content. For this reason, it is necessary to create an attractive strategy for content marketing so that they remain in the sales funnel

If we continuously build interest in prospective buyers, they will remember and continue to think about the products offered until finally, they arrive at the next step, namely the decision.

Decision

The third step in the sales funnel is for potential buyers to decide to take advantage of the offered solution. They pay more attention to the available offers and options and finally decide to buy. 

You can do sales tips to encourage customers to transact, one of which is by providing reviews and testimonials from many buyers. This is one of the most effective ways to get people to decide to buy. By ensuring that the products offered are really good and reliable, people will be more confident in making decisions, especially the opinions of famous and influential people. For example, video testimonials from their social networks.

Action

The final step in the concept of funnel marketing is to make it easier for potential buyers to purchase. Companies must optimize all purchasing processes for customer satisfaction and retention. 

At this point, the business owner can start counting. For example, you spend IDR 2 million to attract 100 people, but in the end, only five people become buyers who earn IDR 6 million in revenue. So, you get IDR 6 million for every IDR 2 million investment, which means a 300% Return on Investment (ROI). If you know the value of the resulting conversion, that value can be used to scale your business.

Strategy to Build a Sales Funnel

If you want to be successful in managing a sales funnel, of course, there is a strategy that you must prepare. Here’s how to build a strategic sales funnel:

Behavioral analysis of the target market

The more you know about your audience, the more effective your sales funnel strategy will be in business. Of course, you don’t have to sell to everyone. Market products to people who are in line with what you are selling so that later your products will sell faster. In addition, by conducting an analysis of our target market, we can improve the shortcomings of our products.

Find out what your target market is interested in

The only way your sales funnel will work is when you can lure people into it. This means you have to put the content in front of your target audience. If you’re willing to spend more money, run some ads. The ideal place to run these ads depends on the relationship platform based on your target audience. If you sell B2B, LinkedIn advertising might be the solution.

Creating a landing page

Ad or other content has to take your prospects somewhere. Ideally, you should redirect to a landing page with an offer so you don’t miss it. These people are still a long way from achieving your sales goals, so you should focus on finding quality leads rather than increasing sales. When you create a landing page, you need to ensure that it’ll take visitors to the next step in the process of achieving sales goals.

Create an e-mail marketing campaign Market

your prospects via email by providing great content. Do it regularly, but not too often. One or two emails per week are sufficient. Build sales by educating your market first. What do they want to learn? What barriers do you have to overcome to convince them to buy? At the end of your campaign, make a compelling offer. That content will inspire your potential customers to take action.

Singapore’s best Marketing Automation System enables you to capture more targeted leads, enhance relationships with clients, and optimize your marketing efforts. With this system, you can create attractive emails with interactive building blocks without a hitch and send it to multiple recipients in a single group or different groups.

Stay connected

Don’t forget your existing customers. Instead, keep in touch with them. Thank them for their purchase, offer them additional discount codes, and engage them on your social media domain. This is what you need to do if you want to get customer retention in your business. Good after-sales will certainly bring good relationships with customers.

Conclusion

That’s the discussion this time about the sales funnel. Explain that the sales funnel is one of the important factors in a business. Depending on how you manage it the sales funnel can be very vital in the sales aspect of a business.  Set up a good strategy, if your business wants to grow. Analyze every piece of data you have, create a strategy, and of course success will come to the business.

Sales Funnel

If you want to process every aspect of business sales easily and carefully, please contact us. HashMicro provides the best CRM-Sales Software, making sales smarter, faster, and more effective. Increase the productivity of your sales team with the most comprehensive web-based Sales Software. Click here to find out more.

Interest in getting savvy tips for improving your business efficiency?

Afkar Azhfar
Afkar Azhfar
Full-Time Internship Content Writer at HashMicro. Always explore new things to develop content writing skills.

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