How does a Sales Funnel Work?

Paul Spraggins

Paul Spraggins

how does a sales funnel work


Do you find yourself a bit skeptical before buying a new product? This is a normal reaction that happens to almost everybody. Operating a business-oriented website and convincing customers to buy a product is not easy. As a website owner, you need to understand the concept of sales funnel for you to make your business prosper.

Sales funnel can transform an unknown business into a multi-million company within a short duration. Some practitioners reveal that they have been able to achieve this by implementing the sales funnel concept.

Every stage of the sales funnel influences a customer’s behavior. As a business owner, you need to learn how sales funnel works so that you can compel your website visitors to buy your products. Before we proceed, we will start with the definition of a sales funnel.

Understanding Sales Funnel

sales funnel meaning

This refers to the steps that people who visit your site take before they can buy your product. It is aimed at converting prospects into buyers. Though many people may visit your website, not everyone will buy your products.

There is no guarantee that a visitor who enters the sales funnel will go up to the last stage. The good thing is that you can do something about it.

A lot of activities should occur between the period a prospective customer enters your sales funnel and when they finally make a purchase. Just like in a physical store, you have to make similar efforts to continue enticing prospects until they buy a product.

You should also be keen on the already existing customers so that they keep buying more products from you and avoid looking at your competitors. Your website enables you to guide your visitors through the entire sales funnel with the help of different pages.

The importance of a sales funnel

This path can help you best understand consumers’ behaviors. It gives you the chance to find pitfalls in the funnels so that you can identify why some customers drop out before making a purchase.

Understanding your sales funnel is the key to optimizing it. Knowing how it works can help you influence a visitor’s decision to buy your product. Most of the customers do not make a purchase on a particular product at first glance. There is a psychological process which happens for a buyer to spend their hard-earned cash on an unfamiliar product.

A sales funnel gives you the chance to create a relationship with your site visitors so that you can compel them to buy your products without hard-selling. You can use different techniques to achieve this, such as includes webinars, tutorials, and value-driven stories to your site.

How does a Sales Funnel Work?

Implementing sales funnel in your business can help you attract more customers and increase sales. From the moment, people visit your site; you need to use different strategies to make your sales funnel successful.

You need to learn the four stages of the sales funnel since each of them represents your consumer’s mindset. Every stage that we will discuss below needs a different approach from you so that you can avoid sending the wrong information.

1. Awareness

The awareness stage represents the first time you manage to capture the attention of your prospects. When visitors open your site, they are referred to as prospects or leads.

Some of them may have entered your sales funnel in different ways. For instance, a friend may have shared a Facebook post or tweet related to your post. Some of the prospects find your website by conducting Google search.

During this stage, your prospects gain awareness of the existence of your business and the products you offer. The main objective of your sales funnel should be to provide a solution to a specific problem that your target group is dealing with.

Understanding your customer’s needs can help you come up with content that can lure them. You then need to offer them a product that can help them solve the underlying problem. Before you get to that stage, the first thing you should do is create awareness.

video content

A customer that conducted a google search to find your website may have done extensive research beforehand and knows what they are looking for from your site. This may make them make an instant purchase since they consider your business credible.

When you have already gained some authority in your field, you can easily make prospects enter into your sales funnel without struggling. If prospects gain access to your website through other means, you have to peak their interest since it may take time for them to purchase your products.

Look for ways that you can establish a relationship with them so that they can move through your sales funnel. People do not buy new products until they are convinced that they can add value to their lives. You can create a strong bond with your prospects by being transparent and honest about your business and products.

2. Interest

When a visitor gets to this stage, they are probably doing in-depth research regarding your product and comparing your business with that of a competitor. They are also trying to figure out the best option that can help them address their problem.

This is the perfect time to give them incredible content which is helpful to them. Do not try to sell the product at this point since it can turn a prospect off. The main aim here is to help a prospect in the best way possible so that they can develop more interest in your product.

You can establish expertise during this stage by sharing valuable information with them through an email sequence. You also need to take some time for you to develop your story as you think about how you can share it with your prospects.

3. Decision

Once you have used the right strategies in the first two stages, your prospects should be ready to purchase your product at this stage. Sometimes, making a decision is not easy. You can help your prospects decide by using testimonials and customer reviews. This can easily make people take the right action since they have examples of customers who have used your products before.

Since they may be considering more than one option, you need to ensure that you present the best offer that they cannot resist. For instance, you can compel them further by offering free shipping if your competitors charge for this service. You can also provide a discount on the product so that your prospects find your offer difficult to turn down.

You can also help your prospects decide on buying your product by using the principle of authority. If well-known people in your area have endorsed your product, it makes you an authoritative source.

social proof

You should also give some form of scientific backing when describing your product to boost credibility. The principle of social proof can also affect the decision that your prospects make. If people on social media platforms cannot stop talking about your product, it convinces a prospect easily.

4. Action

At the bottom of the sales funnel, the prospects buy your product and become a customer. Just because the customer comes this far should not give you the impression that they will continue making purchases from you. The action stage involves both the customer and the marketer. You have to continue supporting them so that they can make more purchases over time.

Your focus in this stage should, therefore, be customer retention. You can achieve this by showing gratitude to them after the purchase. Encourage them to give their views on the product after use. Ensure you are always available after the purchase in case they need any tech support.

The following can help you build a sales funnel successfully. Though the process of building a sales funnel can seem intimidating for a new entrepreneur, you can achieve this in different ways. Start by analyzing the behavior of your audience. Understanding your target audience can help you come up with an effective sales funnel.

hard selling

Since you are marketing products to a particular group, you should understand different things about them. Try to find out how people engage with your website and keep track of the specific time they spend on particular web pages.

Look for ways to grab the attention of your target audience. You can do this by using different types of content, such as videos and infographics. Running paid ads on a different platform can also help you draw them in.

Come up with a landing page that contains a captivating offer. The landing page should compel your site visitors to take the next step. Do not forget to add a call to action in your landing page.


Creating a successful sales funnel may take a lot of hard work, but it can make your business more competitive than your rivals. You have to take your time to find out what your audience wants and avoid asking them to buy your product too soon.