In basic terms, sales funnel is a buying process that companies use to lead their customers through when they are making them purchase their product. Sales funnel is not the only term that is used to define this process. Terms like Revenue Funnel or Sales Process is also used.
Now when you look at this process it has its own meat and bones. It is not a single process in its whole but can be divided into small pieces. These pieces are called phases. Usually, the phases depend on a particular sales model but just to understand the process a common model can be taken. Here it is divided into 7 steps.
1. Phase of Awareness
This is the initial phase of the sales funnel process. Here the prospects are made aware of the existence of a solution. Usually, without a solution in mind, you would not even approach a task. So in this phase, you are made aware that a solution exists and thus a green light to other phases. If a solution does not exist there is no reason for approaching the problem.
2. Phase of Interest
This is the product research phase. Here in this phase, the prospects would demonstrate that they are invested in the idea. The evaluation of this is done through by conducting a product research. If little interest is shown the idea could be discarded fully. Product research in this stage is an imperative process for the success of the product. It is here that the feasibility of product production and existing market potential is done
3. Phase of Evaluation
This is an important phase in the sales funnel cycle. Here you would inch towards the final buying decision. In this phase, the prospect company would examine competitors’ solutions. The main decision for buying or not buying the decision is decided in this evaluation phase. But this is just an inch closer. This stage is especially useful in determining how much market share the product can conquer. Here, even the various methods and strategies that can be used to gain market share are assessed. Additionally, a company may aim to carve out a market of its own by specializing the product for a particular niche. Subsequently, the product can achieve hundred percent market shares if the execution is done right. The final decision is taken in the next phase.
4. Phase of Decision
Another very important phase as it decides whether the idea would be carried on or simply dropped. In this phase, the final decision is reached, and the negotiation begins. Before this phase, it was just planning but from this point onwards the main idea is carried through. This stage is useful for cutting losses in case the product is found to be unfeasible. At this stage, a company must be ruthlessly objective and leave no room for emotion since they may end up losing more money if they continue with an unfeasible product.
5. Phase of Purchase
Here from the name, you can tell what this phase is all about. Here the goods and/or services that have been agreed upon are purchased. The market price and profit margins are assessed and fixed at this stage. This comes in like a result for all the preceding phases.
6. Phase of Reevaluation
The major scheme of this phase is the reevaluation. This is a very important phase for the customer. Here in this phase, the customer is able to decide whether s/he wants to renew the contract or not. This provides the user with a certain kind of flexibility. The user is able to either detach from the contract or still continue with the idea. This phase decides the future of the deal mostly. This stage is also useful for reassessing and improving the product.
7. Phase of Repurchase
Here from the name, you can clearly tell what the phase is about. In the phase, the customer gets to decide on whether the product is to be purchased or not. This is the final phase of the common model.
These were phases that we based on the idea of a commonly used model. Usually, the number of phases would be a varying component. All this may sound confusing but luckily there is ClickFunnels to make things easier.