Ever thought about how would-be clients go from first discovering your business to hiring you? This process is known in marketing terminology as a “sales funnel.” And even if you’re unfamiliar with the concept, you may already be employing a sales funnel in your business.
This is encouraging news because a sales funnel can be a highly productive tool for business growth. Unsurprisingly, however, a sales funnel’s success depends on how well you use it. And when it comes to creating an effective sales funnel, the more thought-out, better organized, and attentively managed your funnel, the higher your sales conversions are apt to be.
So, what exactly is a sales funnel, why does it matter to your business, and how do you create one best suited to connecting with your ideal prospects? Keep reading for the answers to these questions and lots more info on the value of sales funnels!
What is a Sales Funnel?
A sales funnel is a process that charts a prospect’s journey from awareness of your business to hiring you as a professional service provider. It’s called a “funnel” because as prospects move through each stage of the process, their numbers are pared down to the best-qualified potential clients most likely to hire you.
A sales funnel typically includes five initial stages:
- Awareness
- Interest
- Consideration
- Decision
- Action
- Plus, one post-funnel stage, Retention
How Does Each Stage of the Sales Funnel Work?
At the top of the funnel is Awareness. This is where potential customers first become aware of your business. In shopping for professional services, they are most likely to discover you through an ad, whether on or offline, a search engine query, a social media post or a paid ad, a word-of-mouth recommendation, or a direct referral.
Awareness is followed by Interest. In this stage, prospects seek more information about your business and your services. This probably begins with a visit to your website, where they read up on your business and potentially join your email list, usually by signing up for a free lead magnet.
With interest piqued, next comes Consideration: Prospects are now actively evaluating your services and comparing them with alternatives offered by similar providers. This step typically sees prospects exploring the range of services your business offers, reading reviews, or requesting additional information.
Now it’s Decision time. Here, prospects are ready to make an informed decision about whether they want to hire you. They’ll be apt to reach out for clarification on your work process, request details on pricing, and possibly feel out the potential for “negotiating” your fees.
And finally, it’s time to take Action. Your prospect has reached the bottom of the funnel, where they hire you and become a paying client. At this point, pricing and payment terms have been settled, and the working relationship moving forward is officially established.
Technically, the funnel ends here, but many sales funnel outlines include a Retention stage. This covers anything you do to generate repeat business. The process works differently with professional services in comparison to selling consumer goods. As a realtor, for example, you’re not looking to sell more widgets. But it’s nonetheless wise to keep in touch with past clients, anticipating a time when they decide to sell their home and purchase a new residence. Past clients are also an excellent source of referrals, and by keeping in touch, your name remains top of mind should a friend or acquaintance of your client need your services.
How to Create a Sales Funnel For Your Professional Service Business
The question now is… How does this apply to your business? Let’s look at how to put each stage of the process into action.
