Meet the sales funnel, your key to customer conversion

Every customer has a story. Some discover your business by chance, while others arrive after hours of research. But what happens between “I might need this” and “Here’s my payment info”? That’s where a sales funnel comes in. This structured process is what turns browsers into buyers.

No matter your size or industry, understanding sales funnels can help you guide your customers through their journey and ultimately increase your sales for your business. 

The stages of a sales funnel

First, let’s take a look at the sales funnel definition. Your sales funnel represents the path your customers take before buying your product or service, from learning about your business to making a purchase. It’s broadly divided into four stages: awareness, interest, decision and action. Each stage corresponds to a different mindset, and your job is to meet your potential customers’ needs at every point. Like the shape of a funnel, the path starts broad and narrows at each point as you lose some potential buyers, but move along those who are most likely to convert. 

Awareness

The first stage is all about visibility. Your potential customers are just starting to explore their options. Whether it’s through social media, SEO-driven blog posts or word of mouth, your goal is to make more people aware that your business exists. Cast a wide net here. The broader the base of your funnel, the more likely you are to find people who want what you’re selling.

Interest

Once potential customers know who you are, it’s time to pique their curiosity. Use email marketing campaigns, giveaways or interactive content to show them why your offering might solve their needs. This stage is about sparking a genuine connection and providing value.

Decision

At this point, your potential customers are weighing their options. Make it easy for them to see why you’re the best choice through case studies, competitive comparisons and detailed service descriptions. Think of it as the moment when you prove your worth.

Action

The final stage is when your prospect takes the plunge by purchasing your product, signing a contract or subscribing to your service. An intuitive checkout experience, clear calls to action and excellent follow-up support are essential here.

How to create a sales funnel for your business

Ready to build your own sales funnel? Start with these steps:

Step 1: Define your audience

Identify the ideal customers you want to attract. Are they small business owners? Tech enthusiasts? The clearer your picture of your audience, the easier it will be to create targeted strategies.

Step 2: Build awareness

Create content that resonates. This could be an engaging blog post, an ad campaign or a video that you think your audience will love. The key is to be where they’re looking and to offer something of value.

Step 3: Develop trust

Create resources that solve problems or answer questions your potential customers may have. Webinars, how-to guides and email sequences are great ways to deepen trust and move customers closer to buying.

Step 4: Make the decision easy

Provide clear, easy-to-digest information that helps customers decide. Consider adding testimonials, FAQs or live chat options to your website to support them as they weigh doing business with you.

Step 5: Seal the deal

Make the final step hassle-free. Whether it’s an intuitive shopping cart or a simple contact form, a seamless experience can be the thing that determines whether you close the deal or lose the lead.

Sales funnel vs. flywheel

You may have heard of the flywheel approach — a model that focuses on continuous engagement and customer loyalty. Unlike the linear structure of a sales funnel, a flywheel uses momentum created by customer satisfaction to drive growth.

Combining the two models can be especially effective. While the funnel helps attract and convert new customers, the flywheel ensures they remain engaged, turning buyers into repeat customers and brand advocates. Here’s how to integrate a flywheel into your strategy:

Attract

Draw in customers with engaging, helpful content that highlights your expertise. This could take the form of blogs, videos, social media posts or newsletters.

Engage

Offer new customers content that provides immediate value, such as how-to videos, e-books or community events. This helps show them that you’re serious about earning their trust.

Delight

Surprise and impress your customers with exceptional experiences, loyalty rewards or exclusive offers. Delighted customers are more likely to become repeat buyers or to promote your business organically through word-of-mouth referrals or online reviews.

FAQs: What to know about sales funnels

What is a sales funnel in digital marketing?

A sales funnel in digital marketing outlines the steps a customer takes online, from discovering your brand story through ads or searches to making a purchase. It uses tools like analytics, email campaigns and landing pages to guide and optimize the customer journey.

How is a sales funnel different from a sales pipeline?

While a sales funnel focuses on the customer’s journey, a sales pipeline refers to how your business manages leads internally.

What is funnel building in marketing?

Funnel building is designing a process to guide customers from awareness to purchase. It involves mapping customer steps, creating targeted content, nurturing potential clients and analyzing performance to refine the process for maximum conversions.

Can small businesses use sales funnels effectively?

Absolutely. Sales funnels help businesses of all sizes understand their audience and create a clear path to purchase. In fact, small businesses can benefit from using this structured approach to expand their customer base in a thoughtful and strategic way.

What is a sales funnel in affiliate marketing?

A sales funnel in affiliate marketing guides users to complete actions like making a purchase through targeted content, lead capture forms and follow-ups. Affiliates earn commissions by optimizing the funnel for their audience’s needs and interests.

Time to transform your sales strategy?

Whether you’re starting from scratch or fine-tuning your process, a sales funnel is essential for turning potential customers into loyal advocates. Combine this with the flywheel approach to help create a strategy that doesn’t just sell — it builds lasting relationships.

Looking for more insights? Explore the Knowledge Center or connect with a Chase business banker to learn how we can help your business take its next step.