A sales funnel is a visual representation of the journey potential customers go through on their way to purchasing a product or service. It’s called a funnel because it narrows at each stage, reflecting how some prospects drop off at every step.
Stages of a Sales Funnel:
The stages of a sales funnel map out the journey a prospect takes from discovering your brand to becoming a loyal customer. Here’s a detailed breakdown:
1. Awareness (Top of the Funnel – TOFU)
- Purpose: Attract as many potential customers as possible and make them aware of your product or service.
- Activities:
- Social media ads
- Blog posts
- SEO efforts
- Paid advertising
- Content marketing
- Public relations (PR)
- Customer Mindset: “I have a problem or need. What solutions are out there?”
- Metrics: Website traffic, ad impressions, social media reach.
2. Interest
- Purpose: Engage potential customers and educate them about your offering.
- Activities:
- Email newsletters
- Free resources (e.g., eBooks, whitepapers)
- Webinars
- Video tutorials
- Interactive social media posts
- Customer Mindset: “This product or service seems interesting. Tell me more.”
- Metrics: Email sign-ups, webinar attendance, time spent on your site.
3. Consideration (Middle of the Funnel – MOFU)
- Purpose: Help prospects evaluate your product or service as the best solution for their needs.
- Activities:
- Product demos
- Customer testimonials
- Comparison guides
- Retargeting ads
- Case studies
- Customer Mindset: “Which option is the best for me?”
- Metrics: Product page visits, demo requests, engagement with retargeting campaigns.
4. Intent
- Purpose: Identify prospects who are ready to buy and help them finalize their decision.
- Activities:
- Discount offers
- One-on-one consultations
- Personalized follow-ups
- Limited-time deals
- Customer Mindset: “I think I want this. Should I commit?”
- Metrics: Cart additions, pricing inquiries, click-through rates on offers.
5. Purchase (Bottom of the Funnel – BOFU)
- Purpose: Convert the prospect into a paying customer.
- Activities:
- Streamlined checkout process
- Easy payment methods
- Order confirmation emails
- Post-purchase surveys
- Customer Mindset: “I’m ready to buy.”
- Metrics: Sales, conversion rates, revenue generated.
6. Loyalty & Advocacy (Beyond the Funnel)
- Purpose: Retain customers and turn them into brand advocates.
- Activities:
- Loyalty programs
- Personalized thank-you emails
- Upselling and cross-selling
- Asking for reviews or referrals
- Customer Mindset: “I love this product/service and want to recommend it to others.”
- Metrics: Customer retention rate, repeat purchases, referral sign-ups.
Visual Overview:
- TOFU (Top): Awareness, Interest
- MOFU (Middle): Consideration, Intent
- BOFU (Bottom): Purchase
- Post-Funnel: Loyalty & Advocacy