Sales funnels are commonly used to train new sales reps.
A sales funnel, also known as a sales pipeline or marketing funnel, illustrates a specific sales process. While it is usually depicted as an illustration, it is only intended as a visual tool to help salespeople understand the general approach that must be taken to successfully complete a particular sales target. The sales tips and text for each illustrated sales funnel may vary depending on the type of business or organization it applies to, but the basic sales process for each marketing funnel is essentially the same.
They are typically used to train new sales reps, but sales funnel illustrations are also often referred to from time to time by experienced salespeople as a reminder of how the sales process works. While the precise illustrations vary, they all begin with a drawing of a funnel divided into different horizontal levels. Each level represents an important element of the overall sales process.
Most of the time, a sales funnel has at least five different levels, but some can have more. The five essential levels are: identify a target market; contact or attract potential customers in that market; interested qualified candidates; quote a price for the product or service being sold; and close the sale. At each level of the funnel, the number of leads decreases. This is to remind sales reps that while a large number may fit at the top of the funnel, many will be naturally weeded out at later levels. Accepting this view helps reps focus more on the leads at the bottom of the funnel, who are real customers, rather than lamenting lost leads closer to the top of the funnel.
The basic theory of a sales funnel can be applied to any sales industry and can be detailed to suit the business or industry in which it is used. Popular in personal sales, real estate, and other marketing programs, most salespeople are familiar with the sales funnel early in their sales marketing careers. As a training and motivational tool, it serves to help sales recruiters better understand a company’s overall marketing approach. Experienced salespeople may or may not trust an actual sales funnel illustration, but most keep a visual idea of the funnel in mind throughout their careers as a reminder of how the sales process works in general.