7 min read

What Is A Sales Funnel, & Why Is It Essential To Increase Your Sales?

🕒 August 23, 2022 by Reham Omar - 7 min read

Sales are an essential part of any business, small or large, and proper sales management can help your company grow. However, coming up with a sales strategy is not simple. Even if you start working on sales techniques, you might feel stuck after a certain point in time. So, how can you improve the sales of your company? Well, there are various tools available that can help grow the sales of your company. The best one known so far is the sales funnel. But what are a sales funnel, and how can it help your business? Let’s take a closer look. 

What Is A Sales Funnel?

 A sales funnel can be defined as a policy that will help you target the right audience. There are specific steps involved in a sales funnel that will attract a customer. You must follow a predefined path step by step until the final conversion. 

There are several sales funnel software like click funnel, Hubspot, Wishpond, and much more. Most offer free trials to test their features and determine if they suit your business. A sales funnel helps by generating leads. It is the best marketing policy and will improve the overall business process. This, in turn, will help generate leads over time.

How Does a Sales Funnel Work?

A sales funnel has certain stages and is an essential part of the entire sales management process. It is about a customer entering as a prospect and converting to a lead.

Importance of Sales Funnels For a Business

The majority of businesses must have some kind of sales funnel as it helps generate leads over time. A funnel’s importance is bringing a product or service to the market and grabbing people’s attention. You need to offer the right thing at the right time. It is also possible that a funnel can add incentives, bonuses, and discounts and then collect all the essential information.

Attract New Leads

If you want a funnel to work, you must feed in the correct number of leads. The best marketing effort is to collect the leaders in the first place. To collect information, you need to have the right marketing effort. This could include advertising campaigns, social media marketing, search engine optimization, website lead generation, and more. 

Even if you cannot convert a lead, the best thing is you can always keep them updated about the brand details, offers, and policies.

Segmentation Leads to Better Output

Email segmentation is a process by which you can send emails to people interested in personalized content based on various parameters. This technique would help a person target the campaigns in a better way. It would eventually lead to better results. The concept of email segmentation is relatively new among the various other marketing techniques. It allows you to make the most of your prospects.

Upselling Via Email Is More Accessible

Email upselling is a process where a company can offer certain products and services to customers via email. This technique helps sell different things, including high-level and even such products, which can lead to another funnel. The upselling process can help increase the profits if you can do it correctly. 

It is possible to sell various products, even high-paying ones, that can lead to another funnel. If done correctly, upselling is like a boon in the market. With time you will get to increase brand loyalty. 

The overall email segmentation will help increase sales. These can turn cold leads hot and provide you with innumerable options to earn more.

Tips to Help Increase Business

Know Your Audience

You need to know your customers better if you want to convert the prospects into potential customers. If you target the wrong customer, you will be wasting time and money. It is not just about your potential customers but about competitors as well. You can use a traffic analysis tool for better insights and understanding.

Create Informative Content

Your content should have all kinds of information to educate your customers about your products. This would help create brand awareness. With time your customers will gain trust in your brand. Moreover, it should provide value to the target audience, only then will it become easier to generate leads.

Media To Stand Out

After attracting prospects, the next thing to do is to stand out from the crowd. The best way to do this is by using media to engage with prospects and let them understand your products and services better.

Different Stages of a Sales Funnel

Stage 1

This is where the customers are directed to the landing page. Once they do so, they get to check the other pages of your website. This is always considered the widest part of the entire funnel. Sometimes, a person would just look at it instead of having any intention of making a purchase.

Stage 2

Next comes lead generation. If the customer is interested in a product and takes a step downward in your funnel, that would be termed a “lead.” So it is clear that leads do have some interest in your products. So, they might even start researching other products on your page and more about them. Though the customer is aware of your product at this stage, it is not clear if they would be interested in making a purchase or not.

Stage 3

At this stage, your leads will know if your product has the right potential per their requirement or if it does not. If your USP is apparent in the information and is good enough to attract customers, it will help them. Your sales should be tailor-made with the proper technique to attract MQLs based on user personas. Don’t worry if you are losing some leads. The ones leaving at this stage are probably not the right customers.

Stage 4

This is the stage of sales qualified leads. When a person nears this particular stage, they are close to the decision stage of the sales funnel. Anyone who exists at this point is indeed not interested in your product or service. In the next step, you would focus on preventing your customers from leaving the funnel.

Stage 5

This is where you are going to implement the call to action. If a person has reached this level of the funnel, they are just a step away from making the purchase. It is essential to focus on the USP and the call to action, as these are the things that can make or break the entire situation. Your main job is to put customers at ease and be ready to answer all sorts of questions.

Stage 6

This is the final stage of the sales management funnel, where conversion occurs. It means that the prospect is now your new customer. Upon reaching this stage, you need to earn the trust and commitment of your customers. Provide your customers with all helpful information and ensure you collect feedback from them.


Whether large, small or medium, every business should have some form of sales management strategy to help increase sales. It is an entire journey of a customer from initial awareness to making a purchase. Implementing such a funnel strategy aims to increase brand awareness among potential customers and convince them to make a purchase.

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