Definition of Sales Funnel
The process or stages through which potential customers move from initial awareness to final purchase.
Explanation of Sales Funnel
Sales Funnel describes the process a potential customer goes through from initial awareness to final purchase. It is a visual representation of the customer journey, divided into stages: awareness, interest, consideration, intent, evaluation, and purchase. At the top of the funnel, potential customers become aware of a product or service. As they move down the funnel, they show interest by seeking more information and considering the product as a potential solution. In the intent stage, they express a desire to make a purchase, leading to evaluation and finally making the purchase decision. The funnel narrows as potential customers drop off at each stage, with only a fraction making it to the purchase stage. Understanding the sales funnel helps businesses identify where they might be losing potential customers and improve their marketing strategies. By optimizing each stage of the funnel, businesses can increase conversion rates and drive more sales. The sales funnel is a crucial tool for managing and analyzing the sales process.