sales

Sales Funnel

The stage-by-stage path from first touch to closed deal.

Definition

The sales funnel maps the stages a prospect moves through: awareness -> interest -> consideration -> decision -> purchase. Each stage has its own conversion rate, and the funnel narrows at every step (hence 'funnel'). The point of the funnel framework is to identify the worst-converting stage and fix it before adding more leads at the top. Pouring more traffic into a broken stage just amplifies the leak.

In your business

  • Map every stage with current conversion rates
  • Find the worst-converting stage and fix it before adding traffic
  • Different segments may need separate funnels (SMB vs enterprise)

Related terms

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