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What Is a Sales Funnel and Things to Know About It?


The Sales funnel, also known as the purchase funnel is the representation of the journey of a customer initiating the process from the awareness to the final action. The funnel also has names like the revenue funnel or the marketing funnel which describes the entire idea of the huge number of potential customers cutting down to a smaller number of the actual buyers.

Why Implementation of the Sales Funnel Is Important?

Implementing the sales funnel is very important for the following reasons

Generates Customers- The target audiences are moved into the sales funnel with a series of stages that will lead them in becoming customers.

Creates Referrals- When the target audience has turned to satisfied customers, they may refer prospects that were originally not even in the target audience.

Focus On Marketing Efforts- As the sales funnel narrows down, it focuses on a specific group of prospects. Thus it becomes easier for reaching the target audience and converting them to customers when they reach the final bottom part of it.

Tracks and Monitors- With the help of the sales funnel, the organization can track its sales processes at every step. As they are monitoring the progress regularly, the changes are implemented very quickly, as and when required. Useful feedback will be generated when the customers are pushed through the sales marketing funnel.

Process of Working of the Sales Funnel

Depending on the companies, the stages and the functions of the sales funnel may vary. But generally, the stages are divided into four categories.

  • Awareness- In this stage, the numbers of prospects are largest. They search for solutions and go through social media marketing, content marketing, email marketing, or other avenues.
  • Interaction- The number of prospects starts decreasing but the sales conversion starts increasing. As soon as the prospects interact and communicate with the organization, they will ask for more information. With the information, they will perform competitive research and compare the companies. They will ensure that the organization is providing the best for meeting their needs.
  • Interest- When the queries of the prospects are getting resolved, they will automatically gain interest. This process includes sales offers and further research. In this stage, if the customers refuse on buying anything, they are obstructed from going further deep through it.
  • Action- Last and the most important stage is the action. This is the point where the customer decides whether they will buy the product or not. When the customer refuses in buying, the organization should use other marketing techniques for making the product or service stay in the minds of the customers.


Prospects should go through the marketing sales funnel in different stages. Starting from the awareness to the final action of buying, people will go through different stages through the funnel.  The goal of the funnel should be nurturing the prospects and converting them into true customers. When people decline the purchase at any stage, the organization should try other marketing techniques for staying in the minds of the prospects.



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