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Home » Help Hub » Funnel Building » Lead Funnel vs Sales Funnel

Lead Funnel vs Sales Funnel

A lead funnel and a sales funnel are two different ways of organizing and managing the process of converting prospects into customers. A lead funnel focuses on generating and qualifying leads, while a sales funnel focuses on closing deals and generating revenue.

4 Stages of a Lead Funnel

A lead funnel (the lead generation strategy for small business) typically consists of four stages: awareness, interest, consideration, and qualification.

  1. In the awareness stage, the goal is to attract potential customers to your brand and offer.
  2. In the interest stage, the goal is to capture their contact information and permission to communicate with them.
  3. In the consideration stage, the goal is to educate them about your product or service and how it can solve their problems or meet their needs.
  4. In the qualification stage, the goal is to determine if they are ready and able to buy from you.

3 Stages of a Sales Funnel

A sales funnel typically consists of three stages: proposal, negotiation, and closing.

  1. In the proposal stage, the goal is to present your solution and value proposition to the qualified leads.
  2. In the negotiation stage, the goal is to address any objections or concerns they may have and agree on the terms and conditions of the sale.
  3. In the closing stage, the goal is to finalize the contract and collect payment.

A Small Business Needs To Develop Both Types of Funnels

Both lead funnel and sales funnel are important for a small business, as they help you optimize your marketing and sales efforts and increase your conversion rates.

However, they require different strategies and tactics to be effective. For example, a lead funnel may require more content marketing, social media marketing, email marketing, and webinars to generate and nurture leads. A sales funnel may require more sales calls, demos, proposals, and follow-ups to close deals and generate revenue.

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