What Are Sales Funnels and How Do They Work?

The average consumer will need close to three touchpoints online and offline before making a purchasing decision. Consumers these days are savvy, and they know how to shop around for the best deal.

As a marketer or business owner, developing a successful sales funnel is the best way to reach your customers at every touchpoint. So, what are sales funnels? They’re a series of steps that companies use to create a buyer journey.

With a sales funnel, you’ll have a more structured method toward gaining customers. Keep reading to learn more.

What Are Sales Funnels in a Digital Space?

Sales funnels traditionally move through four steps: awareness, interest, decision, and action.

Online, a sales funnel might also be called a click funnel. In the digital space, this type of sales funnel would include a series of landing pages with specific goals.

Through awareness, you can make your brand a well-known name. In the interest phase, your company is one of the top options customers are considering in their research. In the decision phase, you deliver the last pieces of information that customers need to make their decision. The last step is the end goal, which is usually sales.

You can use a sales funnel template to easily implement your funnel online. Keep in mind that you may need to optimize and tweak your funnel, and you may even need to add additional steps.


Step 1: Awareness

Every sales funnel starts with customer awareness. This is where customers first learn about your brand. You can start the awareness phase through Google Display ads, TV ads, print ads, and more.

In this phase, you’re trying to get your name in front of the most relevant audiences.

Step 2: Interest

When customers are funneled into the interest phase, this means they’re considering your company along with your competition. At this step, it’s appropriate to run Google Search ads or develop a content marketing campaign. Your goal in the interest phase should be showing up as much as possible when customers are conducting their buying research.

Step 3: Decision

Customers reach the decision phase when they receive the most impactful information. This could be in the form of sales, testimonials, or news.

The key to influencing customers’ decisions is personalization. 75% of customers are more likely to make a purchase when the company recognizes them by name or makes personalized recommendations.

Use all the information you’ve gathered from the awareness and interest steps to deliver the information that potential customers are looking for.

Step 4: Action

Once your customers move through a successful digital marketing funnel, the action is the ultimate goal. Usually, the action will be sales, but this could vary depending on your business.

To help your customers complete the desired action, you’ll need an easy-to-use conversion page or explicit steps to convert offline.

How Do Sales Funnels Work?

We’ve answered the question “What are sales funnels?” However, you may still wonder how they work in all industries. It all comes down to buyer psychology.

Despite the internet being the quickest source for information, people still consult a variety of sources before making a decision. Meeting them halfway and staying top of mind is the best way to funnel them into your sales process.

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