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.
- In the awareness stage, the goal is to attract potential customers to your brand and offer.
- In the interest stage, the goal is to capture their contact information and permission to communicate with them.
- 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.
- 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.
- In the proposal stage, the goal is to present your solution and value proposition to the qualified leads.
- 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.
- 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.