Boost your revenue with a Sales Funnel

What is a Sales Funnel?

The term sales funnel has been an integral part of sales for years. It also has a firm place in marketing, especially in online marketing.

A sales funnel refers to the path of a prospective customer, who is often called a lead in sales jargon, all the way to becoming a paying customer.

 

How is a Sales Funnel structured?

This illustration shows how a funnel is used. It has a large opening at the top, gradually becoming narrower below, which easily explains the stages of the lead.

The stages of the funnel are different depending on the sales situation, but usually there are 3 to 4 stages. With each level, the number of people in the funnel drops. The percentage of people in one level to another below is called the conversion rate.

After converting the prospects into customers, the average product price can be used to calculate the average sales. Once you’ve set up your theoretical sales funnel, it can be tested with real customers. After the sales funnel has been tested, it should be revised regularly.

 

Which Sales Funnel types are there?

Each sales funnel is unique, as each group of interested parties should be addressed individually. However, one can distinguish between online and offline sales funnels.

 

Offline Sales Funnel

Offline sales funnels are sales funnels that exist outside the internet. Examples of an offline sales funnel are grocery stores or restaurants.

In this case, the following levels can be used.

 

1st stage: people walking past the store

     Conversion Rate: 1%

    10,000 people walk past a store every day

 

2nd stage: people who come into the store

    Conversion Rate: 30%

    1,000 people come into the store

 

3rd stage: people who are interested in the product offered

    Conversion Rate: 30%

    300 people are interested in the product offered

 

4th stage: people who buy the product offered

    Conversion Rate: 10%

    30 people buy the product offered

 

Price of the product 100 €

=> Thus, a turnover of 3000 € per day is earned

 

Optimizations

Conversion Rate Level 1 to 2

An employee stands in front of the store distributing sample packages of the product and motivating people to enter the store.

 

Conversion Rate Level 2 to 3

There is a stand in the store that clearly and simply describes the advantages of the product and thus enlivens it.

 

Conversion Rate Level 3 to 4

Attractive promotions and packages peak the customers interest, leading to them making a purchase.

 

Online Sales Funnel

 

Online Sales Funnels are sales funnel that exist in the context of the Internet. Examples of an online sales funnel are websites.

In this case, the following levels can be used:

 

1st stage: people who see an ad on the website.

    10,000 people see the ad on the website

 

2nd stage: people who click on the website.

    1,000 people click on the website (conversion rate: 1%)

 

Step 3: people who contact the company.

    300 people contact the company (conversion rate: 30%)

 

4th stage: people who buy the product offered.

    30 people buy the product offered (conversion rate: 10%)

 

Price of the product 100 €

=> Thus, a turnover of 3000 € per day is earned

 

Optimizations

 

Step 1

An extended reach of the ad can reach more people

 

Conversion Rate Level 1 to 2

An appealing ad will get more people to visit the website

 

Conversion Rate Level 2 to 3

The website has a clear call-to-action that encourages people to contact the company

 

Conversion Rate Level 3 to 4

A competent sales representative who achieves a high level of sales.

 

 

How does Wavy use its Sales Funnel?

Wavy is an online business and uses several sales funnels to reach charter companies, boat owners and tenants.

An online sales funnel we use is the Charterer Acquisition Funnel.

 

Stage 1: people who see the ad through social media.

    100,000 people see the ad on the website

 

2nd stage: people who click on the website.

     5,000 people click on the website (conversion Rate: 5%)

 

Step 3: people who contact the company.

    1,500 people contact the company (conversion rate: 30%)

 

4th stage: people who use the booking system.

    750 people use the booking system for the product offered (conversion Rate: 50%)

 

Of course, this sales funnel is constantly being adapted, revised and optimized so that more interested parties can be addressed appropriately.

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