6 Levels of the Sales Funnel

Good marketers know that steering a potential customer towards a purchase takes considerable effort. Few purchase decisions happen after just one contact. In fact, it may take 10-12 marketing touchpoints to convert someone into a customer.

For this reason, it is crucial to understand the Sales Funnel. Perhaps just as important as the Buyer Decision-Making Model, the Sales Funnel demonstrates that a concerted effort is required to create a customer.

Since much has been documented about the Sales Funnel, I don't feel the need to go into great detail. However, it is important to understand Sales Funnel basics. Sales Funnel basics boils down to the six levels of the funnel outlined here:

1) Strangers: these are people that have no idea about your business. They represent the mass of potential Contacts that have no awareness and thus float around your Sales Funnel. The best Strangers are identified as your niche, or your target market.

2) Contacts: once awareness is established, Strangers become Contacts. They dip their toe in the funnel. You may know very little about them and they may know very little about you, but at least there is some awareness.

3) Leads: a Contact becomes a Lead once there is some exchange of contact information. The most successful way to convert a Contact into a Lead is via permission marketing. Permission marketing is when a Contact gives you permission to contact them. This can take many forms like web sign ups, emails or even personal calls or visits. The basic concept is that a Contact gives your their contact information and they seek some type of follow up.

4) Prospects: once a Lead has been contacted, they should be qualified. Qualified essentially means that they are either moving closer to the purchase or moving away from a purchase. Prospects are those that are moving closer to the purchase.

5) Customers: there are many ways to think about Customers. My tried and true definition of a Customer is one that pays for a product or service. Look at your database: the people that are paying you are your Customers. Treat Customers as gold because the ultimate goal of the Sales Funnel is to convert Strangers into Customers.

6) Advocates: Advocates are those that recommend your business to others. They might be the most important component to your Sales Funnel because they will fill your Sales Funnel for you. Most often Advocates are satisified Customers, but Advocates can come from just about any level of your Sales Funnel.

In all, it is important to recognize that your entire Sales Funnel requires investment, attention and much care. Successful businesses will invest in each and every level. Tending to one level at the expense of another is rarely a good idea. I've seen many businesses focus on Prospects or Customers alone and forget to fill the Sales Funnel with Contacts. Or vice versa: a business fills their funnel with Contacts but fails to convert them into Leads, Prospects or Customers. Either approach is a recipe for failure.

Focus on all levels of the Sales Funnel. Fill your funnel AND move people through your funnel at the same time.

I reommend the 80/20 Rule here: spend 80% of your efforts moving your Contacts through the Sales Funnel and spend 20% of your time filling your funnel with new Contacts. This formula should be part of your Marketing DNA and successful implementation will move your business to the next level.