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What Is A Sales Funnel?

A Sales Funnel Is A Powerful Tool

A sales funnel is a journey that sellers create for their potential customers to take them from beginning to end where their audience turns into buyers.

In this article, I’ll be showing you the several stages of a sales funnel detailing customer psychology along the way so that you can understand how to market better to your potential clients.

Think of it as the ‘Squid Game’ show.

Each stage, has people being filtered out to the next stage. The people who aren’t able to move on, they’re gone. The survivors move on to the next stage.

So let’s say a person named Anna has an eCommerce store selling cat products and she found a product that she wanted to dropship. That product is a Glow In The Dark Cat Collar.

Stage 1: Awareness

Anna runs a broad ad on social media selling her cat collar. Now her ad is being shown to a cold audience— people who have no idea this collar and her store exist. Now within the cold audience, depending on the social media platform, her ad may show up more than once. Which a good thing because the ad is warming up the potential buyers.

Because her broad audience is made of different types of people, they’ll have different levels of interest.

For example: Why would someone without a cat buy a cat collar?

  • This stage is where people who aren’t interested at all will just scroll away.

  • The other people will move on to the next stage and the rest will be left to the dust (Squid Game reference)

Stage 2: Interest

Now that Anna’s cold audience has seen her brand and product, this is where Anna will gain a warm audience. People who are interested, will go forward and click on Anna’s ad for more information.

For those survivors who don’t have cats, but are interested, there’s a reason why.

Lots of people on social media have posted their own videos and photos of their cats, and if someone sees one of their friends’ cat videos, that’s an awesome gift idea or something to share!

So remember these types of people:

  • People who have friends that have cats but don’t have one themselves will share or tag the Anna’s ad

  • People who are interested in the product but want to know if Anna’s site is legitimate or not will visit her site and possibly become her fans

  • People who have seen the product before on someone else’s ad are now ready to purchase through Anna’s website or compare prices

Stage 3: Decision

It’s decision time and this is where Anna’s warm audience decides whether or not to buy or just walk away. They may add the cat collar to their cart but not complete the purchase.

  • These are the people that are on the fence. Is there a last-second promo offer that Anna set up? Is she giving away a promo product or offering free shipping?

*Note: Experienced marketers will provide an exit strategy for people who plan on walking away by throwing in downsells and have abandoned cart emails already set up.

Stage 4: Action

At this stage, Anna should be hearing chiming sounds on her phone notifying her that she is getting sales.

*Note: Experienced marketers show their upsells right after they buy the product so that customers don’t have to go through adding payment info again...

The action takers are the ones that Anna should cherish because she’s not done with them!

So Anna learned that she should add another product to the mix for those who already purchased the collar. She included a bell to attach to the cat collar with a promo price! Very smart, Anna!

The new cat collar owner now buys the bell go to with it. The funnel is done, and the buyer now awaits their product. (Prize money for surviving.)

That is how a simple sales funnel works from start to end. Of course, there may be a sequel if Anna decides to run another funnel and market to her newfound email list.

I hope that worked and was enjoyable for you to read. If you want more information, you can check out my profile for the links to my YouTube Channel.