How To Explain Sales Funnel To A Five Year Old?
Ifirst heard about “Sales Funnel” a few years back when I was working in a company.
I could not figure out what it is. I was a little confused.
So I asked our Sales Manager. He gave me a 5 minute lecture by drawing a funnel and different stages of the funnel. At the end of the discussion, I was even more confused.
But soon everything became clear when a friend of mine explained what a “Sales Funnel” is.
Sales Funnel is a set of process, he said: “A process of guiding prospects into buying customers”
So why is it called a Sales Funnel?
The name is derived from the regular funnel and its purpose.
The purpose of a funnel is to handle liquid easier and cleaner. When you want to put juice in your drinking bottle, you don’t want to spill it all over the floor.
So What you do? You use a funnel so all the juice go to your drinking bottle without spilling.
Sales funnels work some what similar. It help you avoid “spilling” or “losing” your potential customers.
The idea of using a funnel as a comparison for a sales process in business is based on the classic marketing concept, AIDA. Attention, Interest, Desire, Action.
These 4 elements generally describe how you build customer relationship.
See the diagram below:
How a Sales Funnel Works In Business?
The sales process is traditionally thought of as a funnel: If you put the prospects at the top of the funnel, they will eventually convert into customers and come out from the other end.
That is theory.
But in reality not every prospect is going to be converted into buying customer.
Sales funnel is a set of sales process you have defined and put in place to lead the people who visit your business to a buying customer.
Once you understand how a sales funnel works, it will help you plan and create a successful marketing campaign to attract qualified customers to buy your products or service.
A real life example of using Sales Funnel.
To see a sales funnel in action, let’s use the example of How Brian is using it for his online business.
Brian is selling a “3 Weeks Diet & Weight Loss Plan”. This includes a special diets recipe book, a set of 3 video trainings and a cheat sheet.
Brian creates a blog filled with tips and general “How-To” about dieting and weight loss.
He do an online banner and Google ads advertising on weight loss to attract interested people into his business
He installs a sign up form on his blog so readers can opt-in to a fortnightly “Diet and Weight Loss” newsletter.
Many people visit his blog and those who are interested in knowing more about diet and weight loss sign up for his newsletter.
Brian sends out fortnightly newsletter to subscribers with valuable informations on diet and weight loss
He often makes special offers on his blog and in his newsletter for anyone interested in buying his 3Weeks Diet & Weight Loss Plan.
Subscribers and readers who are seriously interested in weight loss purchase his Diet and Weight Loss” Book and Video Bundles.
Can you see how Brian took the ‘wide’ concept of “Diet and Weight Loss” and focused in on the sales process by applying his Sales Funnel.
See the visual representation of his “Sales Funnel”
In sales, it is not possible to appeal to everyone. Understanding the sales funnel process will help fine-tune your marketing focus and lead you to those buyers who are willing and able to purchase what you are offering.
The bottom line: Understanding how a sales funnel works will help you plan better marketing campaigns, fine-tune your prospecting efforts, attract more qualified customers to your products and, make more sales.
As we all know, the biggest challenge is convincing people to listen to what you have to offer.
But once they trust you and listen to you, everything becomes easier. You can place them in a well thought out sales funnel and continue to service their needs forever.