How does the sales funnel work?

What is a sales funnel?  It is the strategy that transforms any visitor to your website into a buyer.  But for it to really work, you need to execute each step carefully.  And that's what you'll see in this article!  And you will see more: What is a sales funnel and its stages; What should be done at each stage of the sales funnel; Tips for setting up your sales funnel and attracting more customers.  Sales funnel: what is it?  The sales funnel is a representation of the steps a potential customer goes through, from the first contact with the company to closing the deal or making a sale.  It is divided into 3 strategically defined steps to guide the potential customer through their purchasing journey within the company.  Representation of a sales funnel model — But how will I know at what stage of the purchase my customer is?  A person who has been following you on social media for some time, for example, is more likely to buy your product than someone who has just followed you.  In short, the level of awareness a potential customer has about your product or service will tell you which stage of the sales funnel they are at.  But is that all?  If we look at it only from the company's perspective, yes.  It turns out that the sales funnel also considers the individual's level of awareness regarding their problem or desire.  Calm down, we'll explain.  Sales funnel stages Understand now the stages of the sales funnel and the characteristics of customers in each of them: Top of the Funnel At this stage, visitors discover that they have a problem to be solved, previously unknown.  Because they read some content talking about the subject and the problems of not solving it, or even about the benefits of solving it.  Now is the time to offer content that helps educate your audience, such as e-books and other more in-depth materials, such as guides and manuals on the desired subject.  But for your potential customer to move to the next stage of the funnel, you need to use the mental trigger of reciprocity.  When offering free material, ask for their details so that you can continue this relationship.  You can use a form asking for name, email and other details relevant to your business.  If the subject is of interest, the visitor will provide their details to download the material and will then become a lead, and can move on to the next stage of the sales funnel.  You will enjoy reading about: How to attract customers Middle of the Funnel At this stage, the customer who is already a lead is already more aware of what bothers him or what could be a good opportunity.  So, you start looking for ways to solve this, or how to achieve your goal.  For example, Rogério started at a new company as an administrative assistant.  However, he has a bit of difficulty with excel spreadsheets.  But he needs to deliver some reports to his superior next week.  Rogério has a problem and starts looking for a solution.  If you sell Excel courses and offer an expense control spreadsheet on your website, for example, and Rogério finds it, he will definitely download your material.  The chances of you selling your course to Rogério are high.  But remember, the sales funnel is a process and you are not going to offer your course to it now, ok?  The idea here is to mature and qualify the lead so that it is ready and motivated to advance to another stage in the sales funnel.  Bottom of the Funnel At the bottom of the funnel, qualified leads are ready to be approached by the sales team, as they already know they have a problem and are considering the solution.  At this point, you need to show that your product or service is the best way to solve their problems.  And do you know the relationship you have been maintaining with him throughout the journey, educating him about his subject of interest?  It will count a lot in establishing a relationship of trust with your persona.  Because now, you are someone he can trust.  What is the relationship between the sales funnel and the customer's purchasing journey?  As we mentioned earlier, the sales funnel is responsible for supporting the purchasing journey of potential customers.  While the sales funnel shows the product acquisition journey from the company's point of view, the purchase journey identifies the product from the customer's point of view.  So, the four stages of the customer buying journey: learning and discovery, problem recognition, solution consideration, and purchase decision, represent the customer's path to sale.  See the customer purchase journey explained in the infographic below: Stage 1: Learning and discovery Here the buyer does not yet know that he has a problem or business opportunity.  The objective at this stage of the sales process is to spark your interest in a subject or show that what you are experiencing is a real problem that needs to be solved.  At this time, more comprehensive and informative content, such as blog articles, fulfill the role of providing more information on topics of interest.  Stage 2: Problem Recognition At this stage, the buyer identifies that they have a problem or business opportunity and begins to research more about that problem and possible solutions.  You need to offer materials and content that show the consequences if the problem is not resolved or show the positive scenario if it is resolved.  Stage 3: Solution Consideration At this stage, the buyer begins to evaluate alternatives to solve the problem or achieve the desire.  Now it's time to use the urgency trigger and show the persona that they need to solve the problem right now.  To use this trigger, show a negative scenario to the persona, detailing the consequences if they leave the problem to be resolved later.  Stage 4: Purchase Decision Now that the persona is ready to buy, they are evaluating the available options that can solve their problem.  To be your persona’s number 1 choice, highlight the differences in your product or service.  And don't forget to use social proof: success stories and customer testimonials show that your solution actually solves your audience's problem.  Read more about: Sales on Linkedin Marketing and sales Well, now that you know what a sales funnel is, see how to build yours: How to build a sales funnel: step by step Insert Giphy Want to know how to build a sales funnel?  Then follow these tips.  Map the purchasing journey Define the milestones of the sales process Define the stages (in general, the Inbound Sales funnel is divided into 4 major stages, visitors, leads, opportunities and customers) Optimize and scale the sales funnel Content marketing: the driving force of the sales funnel The sales funnel is a well-known concept in the sales universe, but it still raises doubts.  Although it is a common practice for salespeople and managers who need to convert more customers, simply structuring your steps is not enough to have a marketing funnel.  To go further, it is necessary to merge the sales funnel with digital marketing and have effective strategies to assist sales teams.  That's where Content Marketing comes in, which is the creation and sharing of materials that help in prospecting and educating potential customers.  It is through this that you will engage your audience and win them over to your brand.  Content can be in the form of blog articles, e-books, videos, in-depth reports, infographics, and templates.  What will guide the type of content is the strategy you defined to reach the persona.  You may be surprised to discover that a spreadsheet that your team already uses on a daily basis can become an excellent resource for capturing leads or helping them advance through the stages of the sales funnel.  What is Inbound Marketing and what does it have to do with the sales funnel?  In free translation, Inbound Marketing is attraction marketing.  The main difference between traditional marketing (Outbound Marketing) is that, in the latter, the customer is the one who seeks out the company and not the other way around.  In this strategy, actions are carried out with the aim of attracting potential customers to your blog or website and, from there, generating relationships by sending personalized content, according to the customer's problems and desires.  In this sense, the objective of content production is to demonstrate that your company is a reference in a certain subject and influence the purchasing decision of potential customers.  CRM (Customer Relationship Management): the best way to manage your sales funnel To manage your sales funnel, map out the process in advance using a sales CRM.  Sales CRM is a set of practices that aim to improve customer experience and relationships.  In this strategy, CRM platforms are used that record data and information about each of the company's customers.  This information is updated in real time and the software generates reports with insights for professionals who want to optimize sales.  And this is another excellent tool for managing your sales funnel!  Now that you know everything about the sales funnel and how it can help you connect your product with thousands of potential customers, it's time to get to work!  But if implementing a sales funnel is too much work for you or you have no idea how to get started, don't worry.  Meet GS2 Marketing We are experts in attracting visitors, generating leads and nurturing a good relationship with the customer until the moment of purchase.  Our success strategy is based on designing your persona's purchasing journey.  We gather data and analyze our successful clients from different segments to come up with a methodology that will increase your sales.  We have the most strategic areas of digital marketing to make your business grow!  Want to know more about how GS2 Marketing can help you build your sales funnel?
GS2 Marketing JUN - How-the-sales-funnel-works-Authors GS2 Marketing - Frepik

How does the sales funnel work?

Do you know how the sales funnel works? This is a digital marketing strategy capable of transforming any visitor to your website into a buyer.. But for it to really work, you need to execute each step carefully. 

In this article, learn more about the sales funnel in digital marketing! And you will see more:

  • What is a sales funnel and its stages;
  • What should be done at each stage of the sales funnel;
  • Tips for setting up your sales funnel and attracting more customers.
GS2 Strategies Success Stories

What is a sales funnel in digital marketing?

The sales funnel in digital marketing guides customers through their consumer journey.  

It is called a “funnel” because, visually, it resembles a funnel, where many leads enter the initial phase and, as they progress through the process, some of them convert into real customers.

It is a representation of the steps that a potential customer goes through, from the first contact with the company until the deal is closed or a sale is made.

It is divided into 3 strategically defined steps to guide the potential customer through their purchasing journey within the company.

See below how the sales funnel works in digital marketing.

Sales funnel in digital marketing: examples 

Representation of a sales funnel: Visitor Leads Opportunities Sales

How can I identify what stage of the sales funnel my customer is at in the context of digital marketing?

The answer to this question can be found by looking at the level of customer engagement with your brand. For example, someone who has been following your social media for a while is more likely to buy your products compared to someone who has only recently started following you.

Thus, the degree of familiarity a potential customer has with your product or service indicates which stage of the sales funnel they are in. However, this analysis is not limited to just the company's perspective. 

The sales funnel also takes into account how aware the individual is of their own problem or desire, which influences their position in the purchasing process.

Calm down, we'll explain.

Stages of the sales funnel in digital marketing

Now understand the stages of the sales funnel and the characteristics of customers in each of them:  

Top of Funnel

Hopper top

At this stage, visitors discover that they have a problem that they were previously unaware of, because they have read some content that talks about the subject and the problems of not solving it, or even about the benefits of solving it.

Now is the time to offer content that helps educate your audience, such as e-books and other more in-depth materials, such as guides and manuals on the desired subject.

But for your potential customer to move to the next stage of the sales funnel in digital marketing, you need to use the mental trigger of reciprocity.

When offering free material, ask for their information so that you can continue the relationship. You can use a form asking for their name, email address and other information relevant to your business.

If the subject is of interest, the visitor will provide their details to download the material and will then become a lead, and can move on to the next stage of the sales funnel.

You will enjoy reading about:

How to attract customers 

Middle of Funnel

middle of the funnel

At this stage of the digital marketing sales funnel, the lead is already more aware of what bothers them or what could be a good opportunity.. So, you start looking for ways to solve this, or how to achieve your goal.

For example, Roger started at a new company as an administrative assistant. However, he has some difficulty with Excel spreadsheets. 

But he needs to deliver some reports to his superior next week. Rogério has a problem and starts looking for a solution. 

If you sell Excel courses and offer an expense control spreadsheet on your website, for example, and Rogério finds it, he will definitely download your material.

The chances of you selling your course to Rogério are high. But remember, the sales funnel is a process and you are not going to offer your course to him now, okay? The idea here is to mature and qualify the lead so that he is ready and motivated to advance to another stage in the sales funnel.  

Funnel Bottom

funnel bottom

At the bottom of the funnel, qualified leads are ready to be approached by the sales team, as they already know they have a problem and are considering the solution. 

At this point, you need to show that your product or service is the best way to solve their problems.  

And do you know the relationship you have been maintaining with him throughout the journey, educating him about his subject of interest? 

He will count on you a lot to establish a relationship of trust with your persona. Because now, you are someone he can trust.  

In digital marketing, tools like marketing automation are often used to track the progress of leads through the funnel, personalizing interactions based on each user's behavior. 

The ultimate goal is to increase conversion rates, improve customer retention, and drive business growth. 

What is the relationship between the sales funnel and the customer's purchasing journey?

As we mentioned earlier, the sales funnel in digital marketing is responsible for supporting the purchasing journey of potential customers..

While the sales funnel shows the product acquisition journey from the company's point of view, the purchase journey identifies the product from the customer's point of view.

So, the four stages of the customer buying journey: learning and discovery, problem recognition, solution consideration, and purchase decision, represent the customer's path to sale.

See the customer purchasing journey explained in the infographic below:

Learning and Discovery: I have a problem, tell me more about it; Problem Recognition: Ok, I have a problem, time to learn more about it; Solution Consideration: I know solutions, but I don't know if it's the right time yet; Purchase Decision: Ok, but what are your advantages over competitors' solutions?

Step 1: Learning and Discovery

Here the buyer does not yet know that he has a problem or a business opportunity. 

The objective at this stage of the sales process is to spark your interest in a subject or show that what you are experiencing is a real problem that needs to be solved.

At this time, more comprehensive and informative content, such as blog articles, fulfill the role of providing more information on topics of interest.

Step 2: Problem recognition

At this stage, the buyer identifies that they have a problem or business opportunity and begins to research more about this problem and possible solutions. 

You need to offer materials and content that show the consequences if the problem is not resolved or show the positive scenario if it is resolved.

Step 3: Solution Consideration

At this stage, the buyer begins to evaluate alternatives to solve the problem or achieve the desire. Now it's time to use the urgency trigger and show the persona that they need to solve the problem right now. 

To use this trigger, show a negative scenario to the persona, detailing the consequences if they leave the problem to be resolved later.

Step 4: Purchase decision

Now that your persona is ready to buy, they are evaluating the available options that can solve their problem. To be your persona’s number one choice, highlight the unique features of your product or service.

And don't forget to use social proof: success stories and customer testimonials show that your solution actually solves your audience's problem.

Read more about: 

Sales on Linkedin 

Marketing and sales 

Well, now that you know what a sales funnel is, here's how to build yours:

How to set up a sales funnel in digital marketing?

Sales GIF - Find & Share on GIPHY

Want to know how to set up a sales funnel in digital marketing? Then follow these tips.

  • Map the shopping journey;
  • Define the sales process milestones;
  • Define the steps (in general, the Inbound Sales funnel is divided into 4 major steps: visitors, leads, opportunities and customers);
  • Optimize and scale your sales funnel.

Content Marketing: The Driving Force of the Sales Funnel

Content Marketing

The sales funnel in digital marketing is a widespread concept in the sales world, but it still raises doubts.

Although it is a common practice for salespeople and managers who need to convert more customers, just structuring your steps is not enough to have a marketing funnel.

To go further, it is necessary to merge the sales funnel with digital marketing and have effective strategies to assist sales teams.

This is where Content Marketing comes in. It is the creation and sharing of materials that help in prospecting and educating potential customers. It is through this that you will engage your audience and win them over to your brand.

Content can be in the form of blog articles, e-books, videos, in-depth reports, infographics, and templates. The type of content will be determined by the strategy you have defined to reach your persona.

You may be surprised to discover that a spreadsheet that your team already uses on a daily basis can become an excellent resource for capturing leads or helping them advance through the stages of the sales funnel in digital marketing.

Read also

Advantages of digital marketing

GS2 Strategies Success Stories. Download now!

SEO for converting leads in the sales funnel: digital marketing

As digital marketing strategies are of utmost importance for achieving good results, for this reason a widely used and efficient technique for working the sales funnel in digital marketing, consequently, for converting leads into buyers, is SEO.

SEO is a method of creating strategies to generate the best positions for websites in search rankings. This is done through the use of keywords. These strategically used words refer to the way people search for certain things in search engines, such as Google.

What is Inbound Marketing and what does it have to do with the sales funnel in digital marketing?

Inbound Marketing

In free translation, Inbound Marketing is attraction marketing. The main difference between traditional marketing (Outbound Marketing) is that, in the latter, the customer is the one who seeks out the company and not the other way around.

In this strategy, actions are carried out with the aim of attracting potential customers to your blog or website and, from there, generating relationships by sending personalized content, according to the customer's problems and desires.

In this sense, the objective of content production is to demonstrate that your company is a reference in a certain subject and influence the purchasing decision of potential customers.

CRM (Customer Relationship Management): the best way to manage the sales funnel in digital marketing

RM - Customer Relationship Management

To manage your sales funnel in digital marketing, map the process in advance using a sales CRM.

O sales CRM It is a set of practices that aim to improve the experience and relationship with the customer. 

In this strategy, CRM platforms are used that record data and information about each of the company's customers.

This information is updated in real time and the software generates reports with insights for professionals who want to optimize sales. 

And this is another excellent tool for managing your sales funnel!

Now that you know everything about the sales funnel and how it can help you connect your product with thousands of potential customers, it's time to get to work!

But if implementing a sales funnel is too much work for you or you have no idea how to get started, don't worry.

Meet GS2 Marketing

We are experts in working the sales funnel in digital marketing:

  • Attract visitors;
  • Generate leads;
  • Nurture a good relationship with the customer until the moment of purchase.

Our success strategy is based on the design of your persona's purchasing journey. We gather data and analyze our successful clients from different segments to come up with a methodology that will increase your sales. 

We have the most strategic areas of digital marketing to make your business grow! 

Want to know more about how GS2 Marketing can help you build your sales funnel in digital marketing? 

Talk with us! 

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