Sales funnel: definition
The sales funnel: the step-by-step path a stranger travels until they become a customer, from discovery to purchase.
Definition
The sales funnel (or funnel) models the acquisition journey in stages: discovery, interest, consideration, decision. At each stage, part of the people drop off, hence the funnel image. Thinking in stages tells you where the leak is: too few visitors, or a good audience that does not convert. You optimize the stage that is blocking, not everything at once.
Why it matters
The funnel turns a vague problem ("I don't have enough customers") into a precise diagnosis ("I'm losing 90% of people between the visit and the signup"). It is what stops you from throwing budget at the top of the funnel when the leak is at the bottom.
When to use it
You map it out as soon as you want to measure and optimize your acquisition. Concretely, you set the conversion rate of each stage, spot the biggest leak, and focus your efforts there before touching the rest.
Example
Site visitor, then lead who downloads the lead magnet, then prospect who books a call, then customer: each arrow is a stage of the funnel.
Common mistakes
- Adding traffic at the top when the leak is at the bottom.
- Trying to optimize everything instead of the stage that is blocking.
- Not measuring the pass-through rate between each stage.
Don't confuse it with
- lead: A lead is a person at one stage of the funnel; the funnel is the entire structure of the journey.
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Frequently asked questions
- Where should you start optimizing your sales funnel?
- Find the stage with the biggest leak: there is no point adding traffic if conversion at the bottom of the funnel is broken.