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Sales Funnel: An Updated Guide (2023)

A woman who makes online purchases through a sales funnel

Estimated reading time: 4 minutes

In this short article we want to talk about an interesting and topical subject regarding digital marketing issues, namely the so-called sales funnel. This model is often used to succinctly and schematically illustrate - from beginning to end - all the steps taken by a potential customer during the path of online purchase. To get an idea of what we are describing, just think of the image of a real "inverted funnel." If you are interested in learning more about this topic, we recommend that you continue reading the paragraphs to follow.

Sales Funnels: Why Are They Important?

To begin with, a sales funnel is a simplified model that allows you to understand what potential customers' intentions and reactions are as they are proceeding along the entire online purchase path. This can help you in providing valuable information, which is necessary to identify and organize the most appropriate digital marketing strategies for the services or products offered by your business.

The 4 Stages of the Sales Funnel

The entire online sales process can be described graphically using an "inverted funnel" structure that can be divided into several sections. Actually, we can identify as many as 4 stages. The uppermost, and therefore widest, part indicates the moment when the customer journey begins. This, even before the latter manifests the intention to make a purchase.

Awareness Phase

The first stage is the so-called 'awareness stage.' This identifies the moment when the buyer begins to notice, for the first time, your product or service. In this circumstance, the potential customer is interested in gathering all information regarding both the features of your products and those of your competitors. At this time, potential customers are not yet interested in anything specific. They are only involved in a preliminary search for the most satisfactory solution to their problems.

Interest Phase

The second stage of the sales funnel is that of interest. By the time prospects are at this point, they have already finished inquiring about all the products in which they were initially interested, but they are looking exclusively at the details related to your specific product or service. In fact, they have already begun to focus on at least one product as it is deemed capable of solving their problems.

Decision Phase

The next stage of the sales funnel is the decision stage. When a potential customer is at this stage, it means that he or she is now ready to initiate and finalize the purchase. At this point, it is critical to highlight all the advantages of your goods or services in order to provide compelling reasons for them to choose you over the competition. It is also important to emphasize those elements that distinguish your product or service and what makes your company or brand special.

Action Phase

This stage of the sales funnel is where the purchase is completed. At this last moment, if you are able to engage your prospects, you can increase the likelihood of achieving conversions and establishing a lasting relationship with them. The ability to leverage the information gathered from your potential customers will also allow you to capture and enhance those aspects suitable for solving their problems. Truth be told, for businesses, the sales process does not end with a single action. Once a potential customer finishes the buying process, the real goal is to successfully carry out a real loyalty process. The ultimate goal at this stage is not only to successfully conclude a purchase, but is to win the customers' trust so that they will repeat the purchase in the future.

Sales Funnel: Conclusion

In conclusion, by means of the sales funnel, you will be able to accompany the potential customer to achieve, step by step, their acquisition and retention. The correct analysis and understanding of this model will be fundamental to planning all those strategic actions that are fundamental to acquiring more and more customers over time who will complete purchases of your products or services.

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I am the director of Globaltech Solutions, a digital marketing agency based in Lugano, Canton Ticino (CH). I have a degree in economics and great passion for the internet and technology. I am mainly involved in training, SEO, SEM. I am also the founder and editor of a technology blog. Want to stay up-to-date with the latest videos on digital marketing? Follow us on our YouTube channel!



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