What is a ‘sales funnel’?

A sales funnel is a concept used to describe the sales and marketing functions, that refers to the journey that a potential customer takes towards purchasing a product or service.

It is often depicted as a visual representation of a funnel, where the top of the funnel represents the initial stage of awareness, and the bottom of the funnel represents the final stage of making a purchase.

The AIDA sales funnel concept has been attributed to different people and sources over time, but it is generally believed to have been developed by E. St. Elmo Lewis, an American advertising and sales pioneer who lived from 1872 to 1948. Lewis was one of the first people to study the psychology of advertising and marketing, and he is credited with developing some of the earliest advertising models.

The sales funnel typically has several stages, each with its own unique goals and objectives. At the basic level, these stages include:

Awareness: This is the top of the funnel stage where the customer becomes aware of the product or service.

Interest: In this stage, the customer shows interest in the product or service and begins to research it. At this stage, the customer is evaluating whether the product or service is a good fit for their needs.

Desire: The third stage is a desire or emotional connection with the product or service. This can be achieved by showcasing customer testimonials, reviews, or case studies that demonstrate how the product has helped others.

Action: The final stage is to prompt the customer to take action, such as making a purchase or signing up for a free trial. This can be done by creating a sense of urgency, offering discounts or special promotions, or using strong calls-to-action.

Newer versions of the model include an extra stage to highlight, ‘retention’, where the customer becomes a repeat customer and continues to purchase from the company.

The AIDA model has since become one of the most widely used and enduring frameworks in marketing and sales and is still taught in many business and marketing programs today.

By understanding the sales funnel, businesses can create targeted marketing strategies to guide potential customers through each stage of the funnel and ultimately convert them into paying customers.