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What is a Sales Funnel?

A sales funnel is one of the most essential concepts for business growth, and you can turn your social media into one massive sales funnel. But what is a sales funnel? A sales funnel is each step a customer takes on their way to purchasing a product or service. For a store like Target, the sales funnel begins with people walking by the store. When someone walks into Target, they’ve reached the next level of the sales funnel. When they start to look through a rack of sweaters, they’ve made it to the next level. As they walk towards the cash register with a sweater in hand, they’re on their way to the final step of the sales funnel - the purchase. But there's lots more to a sales funnel than that simple process. Let's break it down.

Four Stages of Sales Funnels

The four basic stages in a sales funnel are Awareness, Interest, Decision and Action. The well known acronym for this is AIDA. Each of these stages requires a different approach so you don't turn off a potential buyer or client.


Awareness typically happens through advertising or social media. Sometimes, the stars align, and all a customer needs to see is your Instagram post to want to buy your product. But typically, this stage is more like a quick first impression. This is why you need to post on social media frequently. You never know when it's going to be someone's first time coming across your content.


When a consumer has reached the interest phase, it means they're beginning their research stage. They're looking to learn about your product and service, but they don't want to be sold to - they want to learn. That's why it's important to focus on educational content on your social media that presents yourself as an expert in your field.


The decision stage is when consumers are ready to purchase. You want to be able to offer them a discount or product that is superior to what they can get from other businesses. It's great to cycle your social media content through entertaining to educating, and then sprinkle in your sales pitch as you go so you can catch your followers that are in the decision stage. You can meet consumers in the decision phase in your "call to action" on social media.


The action stage is when the consumer finally makes the purchase. But it isn't just the consumer that needs to take action. Your business needs to move into customer retention mode ASAP. Th