Rethinking The Sales Funnel

The classic sales funnel

A sales funnel is a marketing concept that describes the journey a customer goes through when purchasing a product or service. It is a multi-step process that begins with the initial awareness of a product or service and ends with a purchase decision.

The funnel is divided into several stages, including the awareness stage, the interest stage, the consideration stage, and the purchase stage. Each stage represents a different level of engagement and commitment from the customer. Understanding the sales funnel is important for businesses as it helps them to identify and target the right customers at the right time, and ultimately increase sales. In this article, we will explore the different stages of the sales funnel and how businesses can use it to improve their marketing and sales efforts.

We are all used to seeing the sales funnel as a wide amount of visitors at the top , who then get converted to prospects and eventually a narrower element become clients. This approach has been around for years so does that mean there is a need for rethinking the sales funnel?

The quote from William Townsend Bond Salesmanship in 1924 summarises this dated approach nicely ” Salesmen should visualise sales steps as forcing facts through a funnel which produces favourable consideration. Funnels helped many a salesmen… ”

So the short term challenge of “Revenue Now” becomes how to keep the quantity of visitors and prospects churning through the sales sausage machine.

Buyers Journey and Stages of Awareness

1: Awareness – someone in this stage 

• has a problem or goal and a sense of urgency
• wants to learn more about that problem or goal
• whats to know what sort of options are available

2: Consideration – someone in this stage

• knows the sorts of options or solutions available
• wants to learn more about the pros and cons of each
• wants to know which one suits them best

3: Decision – someone in this stage

• has picked a type of solution
• knows the most suitable service providers
• wants to know which one is the best match

BUT – this model still just aims for the immediate sale

Extending the model

Awareness – Consideration – Decision

4: Retention someone in this stage 

• may want to make the most out of the first purchase
• might not be entirely happy and isn’t sure what to do
• may be interested in additional services / products

5: Loyalty someone in this stage 

• has used / purchased from you more than once and is mostly happy
• might need a nudge to make them purchase again
• would often love some toke of appreciation

6: Advocacy someone in this stage 

• actively sends you referrals or recommends your product / service
• will stand up for you in online discussions
• should be spoiled rotten and treated in a very special way  ( not the new customer gets all the goodies approach and loyal customers get mis treated)

BUT – this development of a longer term client relationship is not linear – because people do business with people they know, like and trust. We can only grow closer over time.

Challenges with the sales funnel concept

The sales funnel concept has been widely adopted by businesses, but it also has some limitations and problems that need to be considered. Here are a few examples:

1. Not all customers follow the same path: The sales funnel assumes that all customers follow the same journey from awareness to purchase, but this is not always the case. Some customers may skip certain stages or move back and forth between stages. This can make it difficult for businesses to track and target customers effectively.
2. Focusing too much on the funnel can lead to neglecting other important aspects of the customer journey: Businesses may become so focused on the funnel that they neglect other important aspects of the customer journey, such as post-purchase support and customer retention.
3. Assumes a linear purchase process: The funnel implies a linear buying process, but in reality, the process is much more complex, customers may move back and forth in the funnel, or even leave and come back later.
4. Doesn’t take into account the digital era: The funnel concept was developed before the digital era, so it does not take into account the many new touchpoints and channels available today for customers to research, evaluate and make purchase decisions.
5. Doesn’t take into account the customer’s experience: The funnel is mainly focused on the business’ goals and not on the customer’s experience. It is essential to consider the customer’s experience throughout the funnel and make sure it is positive and seamless.

It’s important for businesses to keep in mind these limitations and to not rely solely on the sales funnel concept, but to also consider other factors and strategies that can help them to better understand and target their customers.

How To Improve The Movement From Awareness to Advocacy

1. Systemise all routine projects – this will improve overall quality and help in scaling / growth.
   • Note ~ 50% of businesses fail within the first 5 years
     • Why do businesses fail
       • In simplistic terms because they are not able to
         • Attract enough leads
         • Convert enough clients
         • Generate sufficient revenue
         • Deliver a consistent level of quality
2. Treat your best clients in a special way – often 20% of customers generate 80% of your income
3. When you create something new – whether its a product , a process or system
   • Document it in details so that it’s easier to reproduce / replicate and explain
4. If you are identifying and creating new “products / Services” communicate (and if possible sell) these existing customers first
   • Remember keep track of results / findings / feedback so that you can optimise the process
5. If these “products / services” look like they have mileage “BRAND” them  in order to clearly establish there brand position
6. Engage with all and share your knowledge freely. Invite feedback and constructive criticism

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