Five stages of sales funnel and why you should have it
FIVE STAGES OF SALES FUNNEL AND WHY
YOU SHOULD HAVE IT
Let me go ahead and make a guess!
You probably clicked this article link because you are eager to learn more about the
different sales funnel stages and thereby incrementally increase your revenues. And,
If you can understand and leverage the different stages of sales funnel, you can
improve your sales revenue and transactions.
By learning intently about the different stages within the sales funnel, you can learn
to stop money leak between the multiple funnel stages. If you draw a physical
comparison, this is literally like money slipping between your fingers and lost forever.
Ultimately, the multi-stage sales funnel enables you to sit-up and take notice of your
Multi-stage sales funnel improves your revenue
Most customers don’t purchase during their first purchase to the website. This is
especially true in the case of B2B industry and other high value purchases. In these
cases, you have customers that take long time to process the available options and
reach the final decision.
According to mckinsey group, a typical customer journey could be described as given
You need to have a sales funnel to have a place at your prospects mind at the end of
the sales funnel.
A well-tuned and organized sales funnel will bring-forth these advantages.
Evolve your sales pitch and marketing offer
Create maximum number of touch points with a prospect
Create accurate sales predictions
Build a position and identity for your product
Organize your complete sales activity
If you don’t have a segmented multi-stage sales funnel, all your marketing activities
may end-up being skewed or slanting towards ineffective activities. In this, you could
be focusing too much on a particular part of your sales funnel.
For example, you could be focussing on too many search terms to receive large
amount of traffic. At the same time, your landing page should be sufficiently nuanced
to create the final purchase or your sales team should be equipped to close the deal.
This means that the different parts of your sales funnel should be adequately
represented or given adequate information.
Otherwise, you may not be able to close the required number of final sales deals.
Below, we will describe the different phases of the sales funnel and possible ways to
influence and convert those opportunities.
Stage 1 – Industry Awareness
At the first stage, your consumers should be made aware of the reason that your
particular products is worth their time and money. The products across multiple
industry section could be clamouring for your prospects attention.
At this stage, your prospect should be made aware about the particular features and
adequate selling points of product.
You can introduce case studies and client testimonials at this stage.
Stage 1 Goal
The goal would be to make aware of the particular benefits of your industry. By
facilitating specific information, you can set yourself as the main source of relevant
industry data and henceforth reinforce the later stages of funnel.
Stage 2 – Competitive Awareness
Let’s take that your prospect has become aware of your product and currently looking
forward to making the best choice.
The present day consumer has multiple ways of accessing the necessary information.
This is a brief snapshot of the various touch points available at customer’s finger.
By making it easier for your consumers to access and furnish necessary information,
you can make it easier to move forward through the sales funnel.
Stage 2 Goal
The stage 2 Goal would be to introduce the unique selling features or USP’s of your
concerned product. You can achieve this through providing the necessary customer
information through the multiple touch points.
Stage 3 – Evaluation Phase
After purchasing a particular product, your prospect needs to decide about the
suitability of the particular product to one’s own business. This is achieved through
the evaluation phase of the product.
For a SaaS company, this could be a trial version of the particular software. In the E-
commerce space, the prospect may make a minimal product order to evaluate your
services. Anyways, the evaluation phase is the basis for a long-standing customer
Stage 3 Goal
As mentioned, the evaluation phase is intended to convince the prospect about the
right product match. It will also ensure long-standing business relationships.
Stage 4 – Deciding Phase
In this stage, the prospect makes the decision to buy the product or to instead choose
a competitor. In this stage, the sales representative should be equipped with the
answer to all potential customer problems. The pricing system will determine the
final price during this phase.
The CRM quote management software can enable and aid business to make favourable
purchase decisions. The conclusive quotation software can eliminate efficient pain
points in the purchase decision.
Stage 4 Goal:-
For most businesses, this would be point of initial transaction. By effectively
influencing the consumer decision, you can get more deals closed in less time.
Stage 5 – Retention phase
For most businesses, significant portions of revenue goals are achieved through their
repeat purchases and up sell or cross sell deals. This can only be achieved through an
extended period of time. In this light, the ability to retain a given customer base is
The CRM software helps you establish an actual customer retention strategy. This
usually requires multi-channel customer management that demands greater
Stage 5 Goal:-
As per Bain & Company, a 5% increase for customer retention can result in an
revenue increase of 25%-95%. Perhaps, this makes it the most important among all the
different stages of sales funnel.
The five stages of sales funnel is an effective way to attract, convert and manage
your customers. At the same time, an ineffective sales funnel could see your visitors
prematurely leaving your business.
Within CRM software, you can effectively manage your customers effectively through
the five different stages. Learn more about integrated sales funnel to improve your
revenue. Contact us @+91 7899887755 or firstname.lastname@example.org. You can sign-up
and evaluate the sales funnel platform with the free CRM demo or 30-day free CRM