Saturday, July 8, 2017

What is the Sales Funnel?

So what is the Sales Funnel?

The sales funnel is the purchasing process which starts from attracting customers and ends in customers purchasing and repurchasing the company's goods.
Though there are many definitions of the sales funnel, usually, there are 7 phases for the sales funnel: Awareness Phase, Interest Phase, Evaluation Phase, Decision Phase, Purchase Phase, Reevaluation Phase, and Repurchase Phase.

  1. Awareness Phase: This is the process where prospects become aware of their problems and seek the solution. They will eventually learn that there are some solution products and/or services for their issues.
  2. Interest Phase: Prospects shows their interests to the company's service or product.
  3. Evaluation Phase: Prospects examine different products and services for the best decision.
  4. Decision Phase: The final decision is made and the negotiation between the buyer and the seller begins.
  5. Purchase Phase: The products or services are purchased.
  6. Reevaluation Phase: Customers review their purchases and consider of buying more company's products or services.
  7. Repurchasing Phase: Customers repurchase more products or services.
In my opinion, this can be summarized in 4 phases from the perspective of the marketing view.

  1. Aquisition Phase: Attract as many customers as possible.
  2. Conversion Phase: Conver prospects into customers.
  3. Purchase Phase: Lead and help customers to purchase the company's product and/or service.
  4. Post Purchase Phase: Resolve congnitive dissonance and lead customers to repurchase their products and/or services. 

The ultimate purpose of developing the sales funnel is to understand the customer behavior. Once the company knows which phase their customers are at, they can target them specifically and help them to purchase the company's product and service.

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