A sales funnel is a visual representation of the steps a prospect goes through in the sales process. The funnel begins with a large number of potential customers, and as the process progresses, some prospects will drop out of the funnel until eventually, a small number of customers make a purchase.
The three main stages of a sales funnel are:
- Top of the Funnel (TOFU) – This is the initial stage of the funnel, where prospects are introduced to your brand or product. The goal of this stage is to generate leads and create awareness of your brand.
- Middle of the Funnel (MOFU) – At this stage, leads are converted into Marketing Qualified Leads (MQL). These are prospects who have shown interest in your brand or product and have engaged with your content in some way, such as by filling out a form or downloading a whitepaper.
- Bottom of the Funnel (BOFU) – At the final stage of the funnel, MQLs are converted into Sales Qualified Leads (SQL). These are prospects who have shown a high level of interest in your product and are ready to be contacted by a salesperson.
Now, let’s take a closer look at each stage of the funnel:
- Top of the Funnel (TOFU) – Generating Leads
The top of the funnel is all about generating leads. These are people who have expressed some level of interest in your brand or product, but who may not be ready to make a purchase just yet.
There are several ways to generate leads, such as through social media, content marketing, or paid advertising. The goal is to attract potential customers to your website or landing page, where you can capture their contact information and begin nurturing them through the sales process.
- Middle of the Funnel (MOFU) – Qualifying Leads to MQLs
Once you have generated a list of leads, the next step is to qualify them. This is where the middle of the funnel comes in.
At this stage, you will use marketing automation tools and lead scoring to identify which leads are most likely to become customers. You will also use lead nurturing tactics such as email marketing, targeted content, and social media to keep your brand top of mind and guide your leads further down the funnel.
As leads engage with your content and take specific actions, such as downloading a whitepaper or attending a webinar, they will be scored based on their level of interest and engagement. Those who meet a certain threshold will be considered Marketing Qualified Leads (MQLs).
- Bottom of the Funnel (BOFU) – Converting MQLs to SQLs
At the bottom of the funnel, the goal is to convert MQLs into Sales Qualified Leads (SQLs). These are prospects who have shown a high level of interest in your product and are ready to speak with a salesperson.
At this stage, your sales team will reach out to the MQLs and begin a conversation. The goal is to identify their needs and pain points, and to position your product as the best solution. If the salesperson is successful, the MQL will be converted into a SQL, and the sales process will continue until the prospect becomes a customer.
Conclusion
A sales funnel is a powerful tool for visualizing the sales process and identifying areas for improvement. By understanding the stages of the funnel and the key metrics at each stage, you can optimize your marketing and sales efforts and maximize your ROI.
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