[GTMB] Lesson 5: How to Build Your Sales Funnel

A sales funnel, also known as a revenue funnel or purchase funnel, is a visual representation of a potential customer’s steps from the initial stage of awareness to the final stage of making a purchase. Building a sales funnel involves creating a structured process that guides potential customers through each stage of the buying journey to convert them into paying customers.

A sales funnel is like a jet engine. With fuel (prospects) and good operation procedures, your sales funnel will thrust your business forward. To make it work well, Marketing & Sales/Growth teams should collaborate to mutually agree on service levels & prioritize prospects through lead scoring. E.G., within 30 minutes of receiving a high-priority lead, someone from the company connects with the prospect to set up a meeting. Sales funnels would track opportunities and sales through CRM or a marketing automation tool. Lead scoring is covered <here>.

Here are the steps to building your sales funnel:

  1. Identify Your Target Audience: The first step to building a sales funnel is to identify your target audience. Who are the people most likely to buy your product or service? What are their needs, challenges, and pain points? Answering these questions will help you create a marketing message that resonates with your target audience and attracts them to your funnel.
  2. Create Awareness: The next step is to create awareness of your product or service. Discovery occurs through various marketing channels such as social media, email marketing, PPC advertising, and content marketing. The goal is to get your target audience to notice your brand and become interested in what you have to offer.
  3. Generate Interest: Once you have created awareness, the next step is to generate interest in your product or service. This can be done by providing value to your audience through educational content, free resources, or a lead magnet that addresses their specific needs or challenges. The goal is to build trust with your audience and establish yourself as a thought leader in your industry.
  4. Nurture Leads: Once you have generated interest, the next step is to nurture leads through automated emails or follow-up calls. The goal is to keep your leads engaged and interested in your product or service. You nurture prospects like you do your children by continuously educating them about the benefits and features of your offering.
  5. Make an Offer: The next step is to make an offer to your leads. This can be a free trial, a discount, or a limited-time offer that incentivizes them to take action. The goal is to get your leads to take the next step and make a purchase.
  6. Close the Sale: The final step is to close the sale. Closing should always happen through various tactics, such as a sales call, a product demo, or a checkout page. The goal is to remove any barriers to purchase and make it as easy as possible for your leads to become paying customers. The irony of closing is that it is the hardest thing for many salespeople to do, as they have an emotional connection to their prospects. People buy from people they like. If you want entertainment, watch the classic movie Glengarry Glen Ross for some eye-opening sales tactics portrayed by an amazing ensemble.
  7. Follow-Up: Once the sale is closed, it’s important to follow up with your customers to ensure they are satisfied with their purchase and to encourage repeat business. Following up can be done through email marketing, customer surveys, or personalized offers. Many of you will know this as a Customer Success team, and also important for increasing the stickiness of your brand and generating incremental revenue through cross-sell and upsell motions. It is always cheaper to sell more to existing customers than to acquire new customers.

Building your sales funnel requires time, effort, and a deep understanding of your target audience. Following these steps and continually refining your funnel can increase your conversion rates and grow your business.

Next Time:

In tomorrow’s post, you’ll learn how to design your customer journey. Stay tuned!

I’m here and at your service,

Phillip

P.S. Need help building your sales funnel? Feel free to schedule a  15-minute brainstorm .

Like this message? Give me two minutes a day and I’ll help you scale your business so that customers are willing to pay a premium for what you offer and keep paying for it.