Things you must know before creating a sales funnel

You know how the word band can mean a ring/something that binds or like a group? A homonym. So will the words sales funnel and marketing funnel. Go read around the web and you’ll see how many ways the same thing is described. Hell, go read the other blog posts and you can find some difference here and there.

Is one way better than the other? Might be. Are some descriptions as good as others? Probably as well. But the thing that makes us understand each other better and better is to have many ways to describe the same way without confusing the reader. As long as you have a general understanding of the word, the exact definition is, in this case, not that important.

Today I’m going to make a list of 40 things you must keep in the back of your mind before you start creating a sales funnel. Knowing what you need to pay attention to when you start a journey is a very important step of the journey. You don’t need to remember or even learn every step. But you have to know that there are more steps so you know that you can still move in times that you feel stuck. Trust me, there will come times where you’ll wonder what the next step is. This list is meant as a guide. As time goes on I will fill the list up with more and more information so you can become the best you.

Now to get back to business… A sales funnel is a marketing concept that maps out the journey a customer goes through when making any kind of purchase. The model uses a funnel as an analogy because a large number of potential customers may begin at the top-end of the sales process, but only a fraction of these people actually end up making a purchase. As a customer passes through each stage of the funnel, it signifies a deeper commitment to the purchase goal. Here are some of the most known and essential aspects of a sales funnel:

1. Stages of the Funnel:

Typically, a sales funnel, which is designed to optimize your business process, is divided into several stages that can vary according to different sales models. The most common stages are:

Typically, a sales funnel is divided into several stages, which can vary according to different sales models. Take a look at The most common stages are:

Awareness
Potential customers become aware of a product or service.

Interest
They express interest in a category of products or services.

Evaluation
Prospects evaluate the brand compared to others.

Decision
The final decision is made to proceed with a purchase.

Purchase
The product or service is purchased.

Reevaluation (Post-Purchase)
In B2B or long-term contracts, the customer evaluates the purchase decision during the contract period.

Repurchase
The customer decides to renew the contract or purchase again.

2. Lead Nurturing

This involves developing relationships with buyers at every stage of the sales funnel. It focuses on listening to the needs of prospects, and providing the information and answers they need. Effective lead nurturing can result in more sales, higher conversion rates, and a better customer experience.

3. Conversion Rate

This metric indicates the percentage of people who move from one stage of the sales funnel to the next. It's crucial for measuring the effectiveness of your funnel and identifying which stages may need improvement. A low conversion rate at any stage indicates a potential problem that needs to be addressed.

4. Customer Retention

Post-purchase, the funnel continues into retention, where the goal is to keep the customer engaged and satisfied. Strategies here include follow-up communication, loyalty programs, and providing ongoing value. Retention efforts can lead to repeat sales and referrals.

5. Personalization

Tailoring the sales funnel experience to individual users can significantly boost conversions. This means using data to understand customer behaviors and preferences, and creating targeted messages that resonate with different segments. Personalization can lead to a more effective funnel and a better customer experience.

6. Leakage

This refers to potential customers who exit the funnel before completing a purchase. Identifying when and why users are dropping out is essential for funnel optimization. Addressing these issues can help in tightening the funnel and improving the overall conversion rate.

7. Sales Funnel Management

Managing a sales funnel involves tracking metrics, analyzing customer behavior, and refining strategies. It requires constant monitoring and adjustment to ensure that the funnel is performing well. Effective management can lead to a more streamlined and successful sales process.

8. Tools and Software

Various tools and software can help create, manage, and optimize sales funnels. These range from CRM systems to analytics platforms and marketing automation tools. The right technology stack can save time, provide valuable insights, and enhance the effectiveness of the funnel. We personally highly recommend you start with this free funnel building tool to build a solid foundation.

The ultimate funnel builder tool called Funnelytics

9. A/B Testing

This is the process of comparing two versions of a webpage or funnel element to see which one performs better. Regular A/B testing can lead to improved conversion rates and a better understanding of what appeals to your audience. It's an essential practice for optimizing sales funnels.

10. Analytics and Tracking

Using analytics tools to track how users interact with your funnel is critical. This data can reveal insights into user behavior, funnel performance, and areas for improvement. Tracking is key to making data-driven decisions that can enhance the effectiveness of your funnel.

11. Segmentation

Segmenting your audience allows for more targeted and effective marketing within your funnel. It involves dividing your audience into groups based on characteristics like demographics, behavior, or purchase history. Segmentation can lead to higher conversion rates and a more personalized customer experience.

12. Content Mapping

This is the process of aligning content with each stage of the sales funnel. It ensures that you provide the right content at the right time to guide prospects through the funnel. Effective content mapping can educate, nurture, and convert prospects more efficiently.

13. Touchpoints

These are the various points of interaction between a customer and your brand throughout the sales funnel. Optimizing touchpoints can improve the customer journey and increase the likelihood of conversion. It's important to provide a consistent and positive experience at each touchpoint.

14 Lead Scoring

This technique assigns a value to each lead based on their actions and engagement level. It helps prioritize leads that are more likely to convert. Lead scoring can improve the efficiency of the sales process by focusing efforts on the most promising prospects.

15. Drop-off Points

Identifying where prospects are leaving the funnel can provide insights into what might be going wrong. Analyzing these points can help you make necessary adjustments to keep prospects engaged and moving through the funnel.

16. Upselling and Cross-Selling

After a customer makes a purchase, there are opportunities to sell additional products or services. Upselling involves offering a premium version of the product, while cross-selling suggests related products. Both strategies can increase the customer's lifetime value.

17. Customer Lifetime Value (CLV)

CLV is the total worth of a customer to a business over the entirety of their relationship. Understanding CLV can inform how much you can afford to spend on acquiring customers and what kind of retention efforts are justified.

18. Entry Points

These are the various ways a customer can enter your sales funnel. They might come from social media, a search engine, a referral, or other channels. Recognizing and optimizing these entry points can increase the number of leads entering your funnel.

19. Automation

Automation involves using software to automate parts of the sales process. This can include sending out emails, posting on social media, or updating CRM data. Automation can save time and ensure that no part of the funnel is neglected.

20. Compliance and Privacy

Ensuring that your sales funnel complies with laws and regulations, like GDPR, is crucial. It builds trust with customers and avoids legal issues. Privacy should be a key consideration in how you collect and handle customer data.

21. Mobile Optimization

With the increasing use of smartphones, it's essential that your sales funnel is optimized for mobile devices. This includes responsive design, fast loading times, and easy navigation. A mobile-friendly funnel can significantly increase conversions.

22. Social Proof

Including customer testimonials, reviews, and case studies within your funnel can build credibility and trust. Social proof can influence buying decisions and increase conversion rates. It's a powerful tool for persuading prospects to take action.

23. Friction Points

These are elements in the sales process that make it harder for a customer to move forward. Reducing friction, such as simplifying forms or improving page load times, can create a smoother journey and increase conversions.

24. Retargeting

This is a form of online advertising that targets users who have previously interacted with your funnel but did not convert. Retargeting can bring these prospects back into the funnel and increase the chances of conversion.

25. Testing and Experimentation

Continuously testing different elements of your funnel is key to understanding what works best. Experimentation can lead to improvements in design, messaging, and overall strategy. It's a critical part of funnel optimization.

26. Customer Feedback

Collecting customer feedback at each stage of the funnel provides critical insights into the customer experience. It helps identify what's working and what's not, allowing for targeted improvements. This feedback can be gathered through surveys, interviews, or monitoring customer interactions and can lead to higher satisfaction and conversion rates.

27. Funnel Visualization

Visualizing the sales funnel allows for a clearer understanding of the customer's journey. It helps in identifying the number of touchpoints, where prospects convert or drop off, and how each part of the funnel contributes to the overall goal. Visualization tools can also help communicate the funnel strategy across teams.

28. Email Sequences

Well-crafted email sequences can guide prospects through the funnel by providing timely and relevant information. These sequences can nurture leads, provide value, and ultimately persuade prospects to make a purchase. They should be personalized, automated, and adjusted based on the recipient's behavior and stage in the funnel.

29. Exit-Intent Strategies

These are techniques used to capture the attention of a user who is about to leave your site. By offering a special discount, a free download, or a reminder, you can potentially convert an exiting visitor into a lead or a customer. Exit-intent strategies are a last chance to engage with a user and should be compelling and relevant.

30. A/B Split Testing

A/B testing involves comparing two versions of a webpage or funnel element to determine which performs better. This method is essential for optimizing conversion rates and can be applied to anything from email subject lines to landing page layouts. Continuous A/B testing leads to a more refined and effective sales funnel.

31. Behavioral Triggers

Implementing behavioral triggers means sending automated marketing messages based on a user's actions. For example, if a user abandons their shopping cart, they would receive a follow-up email encouraging them to complete the purchase. These triggers help in personalizing the user experience and can significantly improve conversion rates.

32. Sales and Marketing Alignment

Ensuring that sales and marketing teams are aligned is crucial for the success of a sales funnel. Both teams should work towards common goals, share information, and coordinate their efforts to nurture and convert leads. Alignment leads to a consistent message and a smoother transition for prospects through the funnel.

33. Churn Rate

The churn rate measures how many customers you lose over a specific period. Keeping this rate low is essential as it costs less to retain existing customers than to acquire new ones. Understanding and addressing the reasons behind churn can improve customer retention and increase profitability.

34. Value Ladder

A value ladder is a sequence of offerings that increase in price and value, guiding customers to higher-priced products over time. It starts with a low-risk, low-priced item, gradually moving customers up the ladder to more premium, high-value offerings. This strategy can maximize the lifetime value of a customer.

35. Conversion Pathways

Recognizing that there are multiple pathways within your funnel that can lead to conversion is important. Not all customers will follow a linear path, so it's essential to create multiple conversion opportunities that cater to different behaviors and preferences.

36. Psychological Triggers

Utilizing psychological triggers such as scarcity, urgency, or authority can motivate prospects to take action. These triggers tap into the subconscious and can be powerful tools in increasing conversions when used ethically within your sales funnel.

37. Multi-Channel Funnels

Customers often interact with your brand across various channels before converting. Multi-channel funnels track these interactions, providing a holistic view of the customer journey. Understanding this can help in creating a consistent experience across all channels and touchpoints.

38. Data Analysis

Regular analysis of funnel data is essential to understand how effectively it's converting prospects into customers. Data analysis can reveal insights into customer behavior, pinpoint where prospects drop out, and show which strategies are working. This information is vital for continuous improvement of the funnel.

39. Customer Relationship Management (CRM)

A CRM system helps manage interactions with current and potential customers. It can track the customer's journey through the funnel, manage follow-ups, and keep all customer information in one place. A good CRM is invaluable for maintaining a healthy sales funnel.

40. Continuous Learning

The digital marketing landscape is always evolving, and so are customer expectations. Continuous learning and adapting are necessary to keep your sales funnel relevant and effective. Staying informed about new trends, tools, and techniques is crucial for ongoing funnel optimization and success.

Conclusion

Strapping into the cockpit of your sales funnel without this checklist is like an astronaut launching without a spacesuit; you might reach the stars, but you won't enjoy the ride. These 40 points are your gravity boots and oxygen tank in the zero-G world of marketing. They ensure you can moonwalk over the competition with the grace of a gazelle rather than bouncing around like a pinball in a machine. So buckle up, captain of commerce, and prepare for a smooth takeoff. With this galaxy of wisdom, you're not just shooting for the moon—you're charting a course for the universe of unrivaled sales success!