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Sales- The Importance of A Sales Funnel

The Importance of A Sales Funnel


I personally cannot express enough the importance of using sales funnels, and it allows you to look at every action on your website as a potential to the desired outcome. This compilation of articles is to substantiate the importance of using sales funnels.

The Sales Funnel:

[1]Sales funnels allow companies to visualize each step that prospects take on the path to conversion. Each step is a micro-conversion that can be optimized to increase conversions in the end; if one of these steps shows a higher-than-expected drop-off rate, it can be analyzed to see what’s wrong and test out possible improvements.

Funnel tools like Google Analytics help you visualize the flow of customers across your website and spot pages with high drop-off rates, displaying how many visitors exit the funnel at each step.

[2]Why Is The Sales Funnel Important for Business?

It helps you pick a marketing strategy.

Do you often find yourself penniless on marketing strategies that yield minimum to no results? This is why the sales funnel important–for you to understand which marketing tools or business model, you would need to help you succeed as an entrepreneur. Some marketers prefer to focus on clients who are already in the Decision section of the sales funnel. This makes it easier for them to drive in the customers towards the Action portion. Examples of this are seen in review blogs or specialized retail outlets.

The sales funnel, you know how to relate to your customers.

Do you know that businesses also operate in their own language? Sometimes, the way we describe our products, produce content, or talk to our clients affects how we can drive them further down the sales funnel. Once you can identify the sales funnel section of a would-be customer, you can easily change your copy’s tone, make well-directed content, or give enticing offers that will help you relate better to their needs.

It helps you generate more sales.

As you pick a great marketing strategy and know how to relate to your customers better, you will drive more potential consumers in the Action section. In fact, if you mastered the sales funnel, you would make more sales in the long run. The principle of the sales funnel is learning how to pull them systematically towards your desired outcome.

The sales funnel gives you an edge against other newbie entrepreneurs.

The common problem of some entrepreneurs is their lack of direction. They may have great ideas, but they fail to execute them because there is no application of tried and tested systems to make sales. The proper understanding of how the sales funnel works helps you gain a competitive advantage over other businesses in your niche.

It helps you improve on the ways you can grow your business.

There is no perfect business model. In fact, a lot of overnight successes do not really happen overnight. By understanding the sales funnel, you will have increased feedback on what strategies can help you grow your sales. Perhaps you noticed that potential clients in the Decision section choose to purchase another product because of your pricing. You can easily modify these by identifying the roadblocks that lead customers to arrive at your desired results successfully.

[3]Is The Sales Funnel Necessary?

The answer is a resounding yes. Imagine if Shibani decided to go about promoting her webinars blindly without a funnel. She would have no idea how many people have become customers because of her webinars. Not just accountability, there are chances that some of the leads might just get lost in transit. Our sales team might miss out on excellent leads that Shibani painstakingly generated. Follow-ups may get forgotten, and nurturing emails may never get sent.

You can identify where your sales funnel leaks.

If you’re comfortable with the concept of your sales pipeline being a funnel (where new prospects enter at the top and “closed” customers fall out the bottom), the next stage is to assume that this funnel has leaks.

That’s because, for whatever reason, not all prospects are going to buy.

As a result, a percentage of fresh leads entering the top of your sales funnel will leak out at some stage. This inevitable fallout can occur for several reasons, including:

  • They don’t have the budget.
  • They’re not convinced your solution is the right one for them.
  • It’s not the right time for them to buy etc.

Once you accept that your pipeline will leak, the next step is to measure the fallout at each stage. If you do that, you can start to understand the places and even the reason(s) why prospects are not converting to the next stage.

In turn, you can then introduce solutions to plug those leaks to increase your overall conversion rate. And with hard facts supporting the extent of the leakage, you’ll be able to identify where to focus your efforts to get the best results.


If you have any questions on implementing a sales funnel on your website, or if you have any questions, please do not hesitate to call today. has compiled this article, and the reference links are below: