How to Create a Sales Funnel
(That Actually Works)
Don’t let potential customers slip through your fingers. Learn how to create a sales funnel that will convert leads into paying customers!
As a business owner or marketer, you know how critical it is to convert potential customers into paying ones. But, according to a recent study, only about 22% of businesses are satisfied with their conversion rates. 1https://outgrow.co/blog/conversion-rate-optimization-stats
That means 78% of businesses are missing out on potential revenue!
So, how can you ensure that your business is one of the 22%?
As a seasoned marketer with years of experience, I’ve learned that creating a sales funnel is the most effective way to optimize the sales process. In this article, I’ll share my expertise to help you:
- Understand how to create a sales funnel
- Identify the key stages of a sales funnel
- Identify best practices for creating a sales funnel
- Identify tools and resources to assist with creating a sales funnel
Are you ready to create a sales funnel that will help you crush your revenue goals? Look no further because by the end of this article, you’ll be a funnel-building pro.
- A sales funnel is critical for converting potential customers into paying ones and can be responsible for up to 95% of revenue through upsells and renewals.
- A well-crafted sales funnel simplifies the buyer’s journey, increases conversion rates, and allows for focused nurturing of leads and building long-lasting customer relationships.
- The key stages of a successful sales funnel are the top of the funnel (ToFu), the middle of the funnel (MoFu), and the bottom of the funnel (BoFu).
- To attract potential customers and generate awareness, you can use tactics such as advertising, content marketing, and social media.
- Identifying and targeting the right audience is also essential.
Why You Need a Sales Funnel for Your Business
As a business owner, you already understand that making sales is essential for your company’s survival.
However, did you know that having a sales funnel can be responsible for up to 95% of your revenue through upsells and renewals? 2https://www.markinblog.com/sales-funnel-statistics/
As you can tell by the statistics alone, a sales funnel is crucial for your business’s success, as it both simplifies the buyer’s journey and increases conversion rates.
And here is the truth: Studies have shown that only a small percentage of 2% of sales are closed after the first interaction with prospective customers, but after 5th to 12th times of interaction, the chances of closing a deal increase to an amazing 80%! 3https://www.deskera.com/blog/sales-funnel/
By breaking down the buying process into manageable stages, you can effectively identify potential pitfalls and optimize your strategies.
Moreover, a well-crafted sales funnel allows you to focus on nurturing leads and building long-lasting customer relationships, which massively contributes that 80% statistic above.
So with all of reasons WHY out of the way, these are the key stages you should be aware of before starting to build out your sales funnel:
Top of the funnel (ToFu)
This is the first stage of the sales funnel and is all about brand awareness and getting the attention of your website visitors. They may have heard about you from a referral, an SEO search or a Facebook ad, but they don’t know much about your offering yet.
Middle of the funnel (MoFu)
In this stage, you have already captured the interest of your prospective customers and now your goal is to build their trust in your expertise. You do this by providing valuable content, lead generation forms, and other resources to help them make an informed decision.
Bottom of the funnel (BoFu)
This is the final stage of the funnel, where you aim to convert leads into paying customers. Your sales team takes over, offering personalized demos, free trials, and consultations to help the prospect make the final decision. Here, your pricing and customer experience are crucial to closing the deal.
Building a successful sales funnel involves optimizing each stage of the process. By using the right marketing strategies, sales pipeline templates, and sales funnel examples, you can create a tailored funnel that meets your business’s unique needs. And don’t forget to use marketing automation and a CRM tool to streamline the process and improve customer retention.
“By creating a sales funnel, you can turn random visitors into loyal customers by providing them with an unforgettable customer journey.”
| Stage | Goal | Optimization strategies |
|---|---|---|
| ToFu | Brand awareness | SEO, Referrals, Social media, Paid advertising |
| MoFu | Build trust | Content marketing, Lead magnets, Email marketing, Webinars |
| BoFu | Convert leads into customers | Pricing, Sales pages, CTA, Sales reps, Website personalization |
My Toolkit For Easily Building Sales Funnels Without Headaches
Are you tired of using multiple tools to build your sales funnel or operate your business?
If you want an all-in-one solution that simplifies the process we’ll discuss below, then look no further than Systeme.io, my top pick for the best sales funnel builders.
Best Overall Sales Funnel Builder
Editors Rating: 9.3 /10
Systeme.io is an all-in-one funnel builder and marketing platform that allows you to easily create and manage your sales funnel from start to finish. It has a clean, minimal, and user-friendly interface with a drag-and-drop builder to create professional-looking funnels without any coding or design skills.
Systeme.io also offers a variety of features to help you optimize your sales funnel and increase conversions. From email marketing and automation to membership sites and webinars, it has seriously everything you need to grow your business.
Oh and it’s free to start with as well, you’re welcome 😊
The Key Stages of a Successful Sales Funnel
A sales funnel is a visual representation of the journey that your potential customers take from the first touchpoint to the final purchase, and successful sales funnels are composed of several key stages that you should know about:
1. The Awareness Stage
At this stage, your potential customer becomes aware of your product or service. Your goal is to attract their attention and make them interested in learning more about what you offer. You can use tactics such as advertising, content marketing, and social media to generate awareness.
How to Identify and Target Your Ideal Customer
One of the biggest challenges businesses face is identifying and targeting the right audience. Without a clear understanding of who your ideal customer is, your marketing efforts WILL fall flat and fail to generate the desired results.
Here are a simple yet effective framework you can use to identify and target your ideal customer:
Step 1: Conduct Market Research
Start by conducting market research to gain a deeper understanding of your target audience. This can include analyzing demographics, psychographics, and behavior patterns to get a better sense of who your ideal customer is.
This can also be just as easy as jumping on Twitter to send some DM’s and engage in conversation with people that have certain pain points related to your product and it’s solution. Don’t overcomplicate it, just take action!
Step 2: Develop Buyer Personas
Based on your market research, develop buyer personas that represent your ideal customer. These personas should include detailed descriptions of your target audience’s characteristics, preferences, and pain points.
Imagine and visualize the persona, how they act, talk, feel, and think. This will make the comming stages way more easier and will actually fulfull search intent better.
Step 3: Determine Your Unique Selling Proposition
Determine what sets your business apart from the competition and use this information to create a unique selling proposition (USP) that resonates with your target audience.
You need to stand out from the crowd, but there is also no need to reinvent the wheel. Look at your competitors, what determine what YOU can do better.
Step 4: Tailor Your Marketing Messages
Use the information you’ve gathered to tailor your marketing messages to your target audience. This includes developing content that speaks directly to their needs, preferences, and pain points.
This should be self-explanatory but always keep your target persona in mind when crafting content.
Step 5: Use the Right Channels
Determine which channels your target audience is most likely to use and focus your marketing efforts on those channels. This includes social media, email marketing, and search engine optimization.
You NEED to go to where your audience hangs out. For me that’s Twitter, for you it might be LinkedIn or on Google, so make sure to identify this.
2. The Interest Stage
During this stage, your potential customer has expressed interest in your product or service. Your goal is to build a relationship with them and provide them with more information about what you offer. You can use tactics such as lead magnets, webinars, and free trials to nurture their interest.
Creating Effective Lead Magnets to Attract Prospects
Lead magnets are an essential part of any effective sales funnel. A lead magnet is a valuable piece of content that you offer to your prospects in exchange for their contact information. It’s your chance to make a great first impression and demonstrate your expertise.
Once you have a clear understanding of your target audience that we established in the awareness stage, you can create a lead magnet that is tailored to their specific needs and interests.
What To Look For In Your Lead Magnet
Your lead magnet should be a valuable piece of content that provides real value to your prospects. It could be an ebook, a whitepaper, a checklist, a webinar, or any other type of content that your target audience would find useful.
The key is to create content that is actionable and easy to consume. Your prospects should be able to take the information you provide and apply it to their own business right away.
View it as giving away free actionable content that actually changes their business for the better immediately.
If your free content is THAT good, just imagine how much better your PAID services are? This is what you want your prospects to think after consuming your free offer.
Promote it!
But creating a great lead magnet is only half the battle! You also need to promote it effectively to attract prospects to your sales funnel.
Promote your lead magnet on your website, social media, and other marketing channels. Use targeted advertising to reach your ideal audience and drive traffic to your landing page.
Remember, your lead magnet is your chance to make a great first impression and demonstrate your expertise. Put in the effort to create a valuable piece of content that your prospects will love, and you’ll be well on your way to creating an effective sales funnel.
3. The Decision Stage
At this stage, your potential customer is considering making a purchase but are not quite convinced yet. Your goal here will be to provide them with all of the information they could possibly need around your offer or business, while still building a solid foundation and trust with them.
You can use tactics such as email marketing, case studies, and video testimonials to help them out.
The Power of Automated Email Sequences in Your Funnel
Automated email sequences are a game-changer for your sales funnel. Instead of manually sending follow-up emails, you can set up a sequence that automatically sends targeted messages to your prospects at the right time.
Why is this so powerful? For one, it saves you time and effort. You can focus on other aspects of your business while your email sequence does the heavy lifting.
But more importantly, it helps you build a relationship with your prospects and “funnel them along” your sales funnel closer to a sale.
Think about it: when someone signs up for your email list, they’re showing interest in your business.
But if you don’t follow up with them, that interest can quickly fade. By sending a series of emails that provide value and build trust, you’re more likely to convert those prospects into customers.
Of course, not all email sequences are great. You need to make sure your messages are relevant and engaging. Here are some best practices:
- Segment your list so you can send targeted messages to specific groups of people.
- Start with a welcome email that sets the tone for your relationship and what’s to come.
- Provide value in every message, whether it’s a helpful tip, a free resource, or a special offer.
- Include a clear call-to-action in each email.
- Test and optimize your sequence over time to improve your results.
Don’t underestimate the power of automated email sequences in your sales funnel. Remember that statistic I mentioned that you need an average of 5-12 touch points before closing a prospect? This is it at work!
4. The Action Stage
The final stage is where your potential customer becomes a paying customer, and you do that by making the entire process of doing business with you smooth and seamless.
You can use tactics such as a very clear call-to-action, a compelling and no-brainer value proposition, simple checkout processes, and follow-up emails to ensure a successful purchase.
Crafting a Compelling Value Proposition to Convert Leads
Your value proposition is a statement that explains what sets your product or service apart from the competition and why your potential customers should buy from you, NOW.
What makes your product or service different or better than what’s already out there? What specific benefits do you offer that your competition doesn’t?
Focus on Benefits, Not Features
When crafting your value proposition, it’s important to focus on the benefits of your product or service, not just the features. If someone wants a fast and cool car, they don’t care about the specifications!
Features describe what your product or service does, while benefits explain how it solves a problem or meets a need for your potential customers.
For example, if you’re selling a software program that helps with time management, a feature might be the ability to set reminders and deadlines. But the benefit is that it helps your potential customers stay organized and meet their goals.
I hope it makes sense by now.
Keep it Simple and Clear
Your value proposition should be simple and clear. Avoid using industry jargon or complex language that might confuse your potential customers.
There is actually a framework for this called the ELI5 (Explain Like I’m 5), make sure even a five year old could understand your UVP!
Remember, your potential customers are busy and don’t have time to read (or think) about a long and complicated value proposition.
Test and Refine Your Value Proposition
Finally, it’s important to test and refine your value proposition over time. Pay attention to how your potential customers respond to your messaging and make adjustments as needed.
Consider doing A/B testing with different variations of your value proposition to see which one resonates best with your target audience. Use data and feedback to refine your messaging and make sure it’s as effective as possible!
Optimizing Your Sales Funnel with A/B Testing
To truly maximize your results, you need to continuously test and refine your funnel to ensure it’s working at maximum efficiency. This is where A/B testing comes in.
What is A/B Testing?
A/B testing, also known as split testing, is a method of comparing two variations of a webpage or marketing campaign to determine which one performs better. By randomly showing different versions to different segments of your audience, you can identify which version leads to more conversions and revenue.
How Can A/B Testing Optimize Your Sales Funnel?
There are several ways to use A/B testing to optimize your sales funnel:
- Testing Landing Pages: By testing different variations of your landing pages, you identify which elements (such as headlines, images, or calls-to-action) lead to the highest conversion and click through rates.
- Testing Emails: A/B testing your email campaigns helps withimproving open and click-through rates, leading to more traffic to your landing pages and ultimately more conversions.
- Testing Offers: By testing different offers (such as discounts, free trials, or bundled packages), you can identify which ones lead to the most sales.
Best Practices for A/B Testing
While A/B testing is a powerful tool for optimizing your sales funnel, there are some best practices to keep in mind:
- Test One Variable at a Time: To accurately determine which variation is the most effective, you should only test one variable at a time (such as a single headline or image).
- Ensure Your Sample Size is Statistically Significant: To ensure your results are reliable, you should test your variations on a large enough sample size to be statistically significant.
- Test Consistently: To maintain an optimized sales funnel, you should regularly test and refine your variations to ensure you’re always improving.
By incorporating A/B testing into your sales funnel optimization strategy, you identify the best-performing elements of your funnel and continuously improve your results. Don’t settle for a sub-optimal sales process – start A/B testing!
How to Measure and Analyze Your Sales Funnel’s Performance
When it comes to creating a sales funnel, it’s not just about setting it up and letting it run. You need to measure and analyze its performance regularly to make sure it’s actually working and bringing in the results you want.
Identify Your Key Performance Indicators (KPIs)
First things first, identify the key metrics you want to track to measure the success of your sales funnel. This could be the number of leads generated, conversion rates at each stage of the funnel, or the average deal value.
Once you’ve identified your KPIs, set up a system to track them consistently. Your sales funnel software may have built-in reporting tools, or you may need to use a separate analytics tool to track your KPIs.
Analyze Your Data Regularly
Once you’re tracking your KPIs, it’s important to analyze the data on a regular basis. This could be weekly, monthly, or quarterly depending on your business and sales cycle.
Look for patterns and trends in your data. Are there certain stages of the funnel where you’re losing a lot of leads? Are there areas where you’re seeing a lot of drop-off in the conversion process?
Use this data to make informed decisions about where to focus your efforts to optimize your sales funnel and improve performance.
Continuously Test and Iterate
Finally, remember that your sales funnel is not a static entity. It’s important to continuously test and iterate on your funnel to improve performance.
Try different variations of your landing pages, emails, and calls to action to see what resonates best with your audience. Use A/B testing to compare different versions and make data-driven decisions about which approach works best.
Common Sales Funnel Mistakes and How to Avoid Them
As someone who has worked with sales funnels for years, I’ve seen plenty of businesses make mistakes when it comes to creating and implementing their own. Here are some of the most common sales funnel mistakes and how you can avoid them:
Mistake #1: Not Understanding Your Audience
One of the biggest mistakes businesses make with their sales funnel is not understanding their audience. Really nail the pain points of your desired customer to make sure your content hits home with them.
To avoid this mistake, simly create detailed buyer personas and use them to guide your sales funnel strategy. Make sure your messaging speaks directly to your target audience and addresses their specific needs.
Mistake #2: Focusing Too Much on the Sale
Another common mistake is focusing too much on the sale and not enough on building a relationship with your audience. Your sales funnel should be about building trust and providing value, not just pushing products or services.
To avoid this mistake, focus on providing valuable content and building relationships with your audience at every stage of the funnel. Offer free resources, engage with your audience on social media, and follow up with personalized emails.
Mistake #3: Not Testing and Optimizing
Finally, many businesses make the mistake of not testing and optimizing their sales funnel. Your funnel should be a constantly evolving process that you are always looking to improve.
To avoid this mistake, track your metrics and use A/B testing to optimize your funnel at every stage. Continuously analyze your data and make changes based on what is working and what isn’t.
By avoiding these common sales funnel mistakes, you can create a funnel that truly resonates with your audience and drives results for your business.
FAQs
How do you write a sales funnel plan?
To write a sales funnel plan, you need to understand the customer journey and optimize the customer experience to drive more sales.
Start by identifying the stages of your sales funnel, from awareness to action, and create a visual representation of the process.
Can you make your own sales funnel?
Yes, you can make your own sales funnel quite easily.
To create your own sales funnel, start with understanding the customer journey.
Use an all-in-one sales funnel builder to then build out the customer journey.
What is the difference between a sales funnel and a sales process?
The main difference between a sales funnel and a sales process is the perspective they take.
A sales process represents the set of actions taken by sellers to turn a prospect into a customer, while a sales funnel represents the purchasing journey from the perspective of the customer.
Best Overall Sales Funnel Builder
Editors Rating: 9.3 /10
About the author, Chris