What is “Sales Funnel” meaning?

A sales funnel is a model that illustrates the stages a customer goes through during the buying process. It typically consists of four main stages: awareness, interest, decision, and action. The goal of a sales funnel is to guide potential customers from initial awareness to the point where they make a purchase or take action.

Example

“By optimizing their sales funnel, the company was able to convert 20% more leads into paying customers.”

How is “Sales Funnel” used in business?

Businesses use the sales funnel to understand and manage the customer journey. It helps marketers target prospects with the right content or offers at each stage, maximizing conversion rates. Sales teams can also use it to focus their efforts on leads that are more likely to convert.

Pro Tip

Regularly assess your sales funnel to identify any bottlenecks and make adjustments to improve conversion rates at each stage.