Sales/Marketing Funnel

A visual representation of the customer journey from initial awareness to final purchase and beyond.

Definition

A sales or marketing funnel is a step-by-step process that guides prospects through different stages of the customer journey. It helps businesses understand how leads move from awareness to consideration to purchase, identifying opportunities to optimize conversion at each stage.

Typical Stages

Awareness: Prospects discover your brand or product
Interest: They engage with your content or website
Consideration: They evaluate your solution against alternatives
Purchase: They decide to buy and complete the transaction
Retention: They continue using your product/service
Advocacy: They recommend you to others

Real-World Example

SaaS Company Funnel:

  • • 10,000 website visitors (Awareness)
  • • 1,000 sign up for newsletter (Interest) - 10% conversion
  • • 500 start free trial (Consideration) - 5% conversion
  • • 100 become paying customers (Purchase) - 1% conversion

Related Terms