Stages of the Sales Funnel: From Top to Bottom

Process. It’s a word that makes many of us cringe. But if you’re going to sell effectively, it’s essential to have functional processes in place. And one of the most important processes you can utilize is a seamless and efficient, conversion-ready sales funnel. Once you have your sales funnel in place, prospecting and closing becomes a whole lot easier.

First, let’s start with the basics by breaking the sales funnel down into three basic levels: Top, middle, and bottom. The metaphor is pretty simple – it’s wide at the top and narrow at the bottom. The idea is that as your prospect dips further down the funnel, they become more qualified and closer to conversion.

Implementing an effective sales funnel means not jumping right into the close. Instead, it means nurturing the lead down the funnel by offering value and education. The goal is to first establish trust, which means expressing a willingness to help educate and fill a certain need or desire. As renowned author and salesman Zig Ziglar noted, “People don’t care how much you know until they know how much you care.”

One of the biggest challenges B2B sales and marketers face when it comes to lead generation is generating high quality, close-worthy leads (a whopping 61 percent).

Top of the Funnel: The Information Stage

Prospects in the top of the funnel are, quite simply, unqualified. They may have generated some interest in your product or service, but they’re still lingering in the information stage. They’re looking to be educated on whether they feel they do in fact need or desire what you have to offer. Attributes of a TOF lead may include:

• Have existing suppliers with whom they have a good working relationship with.
• Believe their needs may be satisfied by one or several of your competitors.
• Are intrigued with your products or services, but are unsure about whether their budget will allow for them.

During this stage, the value of the lead is dubious, at best. They are unqualified and the probability of conversion is highly uncertain. There may be millions of people who could benefit from your product or service. But most of them may not even realize it, or simply don’t have enough information to give it serious consideration.

Middle of the Funnel: The Evaluation Stage

The prospect has confirmed interest. Now it’s time to nurture them to the bottom stage of the sales funnel. While middle-of-the-funnel leads have certainly expressed more interest, their level of commitment is still in question. Attributes of a MOF lead may include:

• Investigating further into the product or service you have to offer.
• Seeking data and information about how a solution may function within their organization.
• Comparing your product or service to your competitors’ offering.

MOF leads have acknowledged that they do have a need to be filled. They’re one step closer to taking action. While TOF leads are simply looking to be educated, MOF leads need to be shown why your solution is indeed the best solution. Here you are able to distinguish between the casual information-gatherers from the people who really do have interest in what you have to offer.

Bottom of the Funnel: The Decision Stage

At this point in the funnel, prospects have entered the “purchasing” stage. They’ve already compared you to your competitors, and have concluded that you likely carry the best solution for their particular needs. Attributes of a BOF lead may include:

• They’re considering that you’re offering may be superior to your competitors.
• The only barrier may be the cost of your goods or services.
• They’re in the decision stage, and just about ready to pull the trigger.

They’re targeted, they’re ready, they’re dangling in your hand. They just require a gentle nudge. Whether it’s an offer, a trial, or free assessment – it’s time to take action.

Patch up the leaky funnel and solidify your process

By utilizing the sales funnel – qualifying individual prospects along the way – you can estimate who will, over time, convert from lead into customer. Furthermore, by quantifying your leads, you can uncover holes in your sales pipeline and rectify them early.

If a sales opportunity does not migrate down to the bottom stage, you may have a leaky funnel. But formulating the right combination of top, middle, and bottom of the funnel strategies is a recipe for sales success. Simply attract the right kind of leads, nudge them gently down the funnel, close the deal, and see your strategies yield the sales growth you’ve always longed for.

Have insights you’d like to add to the mix? Join our online discussion to contribute your ideas, while staying tuned in for more posts from our LinkedIn Sales Hacker Community.