A sales funnel is a marketing term that describes the journey potential customers go through on the way to making a purchase. It is a visual representation of the customer journey, depicting the sales process from awareness to action. The funnel is divided into several stages, usually known as the top, middle, and bottom of the funnel, although these steps may vary depending on a companys sales model. The main elements of a sales funnel are:

• Top of the funnel (TOFU): This is the awareness stage, where potential customers become aware of a product or service.

• Middle of the funnel (MOFU): This is the consideration stage, where potential customers are evaluating whether or not to make a purchase.

• Bottom of the funnel (BOFU): This is the decision stage, where potential customers are ready to make a purchase.

A sales funnel helps marketers understand a customer’s purchasing journey, while also identifying what stage of this journey the customer is at. These insights can be used to decide which marketing channels and activities will best guide the customer towards a purchase. A sales funnel also allows marketers to tailor and optimize their activities and messaging to increase conversions.

Sales funnel management can help businesses plug holes in their sales funnel and turn near-misses into sales. Sales and marketing automation software can help manage the sales funnel and turn prospects into paying customers. A well-defined sales funnel can offer several benefits to a company, including creating customers, generating referrals, monitoring and tracking sales, and focusing sales efforts.

In summary, a sales funnel is a marketing model that describes the journey potential customers go through on the way to making a purchase. It is divided into several stages, and helps marketers understand a customer’s purchasing journey, while also identifying what stage of this journey the customer is at. Sales funnel management can help businesses turn prospects into paying customers, and a well-defined sales funnel can offer several benefits to a company.