Improving sales funnel efficiency should be among a company’s top priorities to turn cold prospects into hot leads and boost sales performance.
In this article, you’ll find out what a successful sales funnel looks like, including three examples of companies doing it right. You’ll also learn why they’re so valuable and how to build a funnel and manage your own.
Key takeaways
A sales funnel tracks the buyer journey from the awareness stage to a closed deal, helping you deliver the right message to the right prospect at the right time.
Aligning your sales and marketing efforts around your funnel helps you filter out unqualified leads, move deals faster and forecast revenue with confidence.
With the right sales strategy and a clear process, you can identify exactly where your sales funnel is leaking and fix it before it costs you new leads.
CRM software like Pipedrive makes it easy to build, track and optimize your funnel in one place – try it free and see the difference a well-managed pipeline makes.
What is the sales funnel and how does it work?
Sales funnel software visually represents the journey from your prospect’s first contact with you until a completed purchase.
It helps your sales team understand where they need to follow up or alter thesales process because too many leads drop out at a certain stage.
It’s called a sales “funnel” because the steps narrow as potential customers near the end of the process.
Each stage of the funnel pushes your qualified prospects into the next stage and drops those who don’t fit your offer.
A sales funnel is connected to the customer journey phases, which cover all the steps your customers take to purchase your product.
The sales funnel structure feeds the process that prospects go through in your customer relationship management (CRM) software:
Lead In > Contact Made > Needs Defined > Proposal Made > Negotiations Started > Won
Here’s one example of what that can look like on your customizable Pipedrive dashboard:
Your unique sales funnel may have fewer or more steps, and you can update your CRM’s layout to reflect this.
Studying your sales funnel can help you understand where you’re going wrong with prospecting, exactly when sales leads drop off and what prompted existing customers to convert.
A well-defined funnel improves the customer journey and company performance, so optimizing yours can have an immediate, lasting impact on your sales goals.
Stages of a sales funnel
Top-performing reps know the sales funnel stages inside out, from cold calling to finalizing the sale.
Understanding this helps them in two key ways:
They can address customers’ key needs and deliver the right message at the right time
They can scale their process and forecast sales and revenue to hit their goals
To fully understand the sales funnel meaning as a beginner, you need to understand its different steps.
While different organizations have their own ways of managing and naming the sales process and customer touchpoints, companies usually structure them into three distinct stages.
1. Top of the sales funnel: awareness and discovery
Early in their journey, your potential customers have a question or concern. They research potential solutions, which is when they discover your business.
Perhaps they received a cold call from a member of your team focused on prospecting, or found your site and contact information on their own.
At this stage, they’re still identifying their challenge.
They have many questions as they try to verbalize their problem and seek a trusted source of information.
Here are three examples of searches and questions prospects might have for specific industries:
A customer support software – “customer support industry benchmarks”
A mattress online store – “Why does my back hurt after sleeping?”
An electricity provider – “average electricity bill”
From a digital marketing perspective, prospective customers want easily accessible content that will guide them through the topics that matter to them.
Blog posts, videos, webinars and even quizzes facilitate this part of the process, which is called lead generation.
If you’re using sales funnel management to track this stage, your Uncontacted prospects may turn into Contact Made prospects. More precisely, they are now your Leads.
Now, your sales reps can ask relevant questions and qualify leads to ensure they’re the right customers for your company.
2. Middle of the sales funnel: researching solutions
Now you’ve filtered your prospects, those still in the funnel should be “ideal customers”.
Questions in the middle of the funnel are no longer generic, as your prospects have now named and defined their problem(s).
Using the same industries as in the previous section, these might be their searches:
“Types of support for software teams”
“How to choose the best mattress for [back condition]”
“How to save money on an electricity bill”
In the middle of the sales funnel, your lead is diving deeper into the specifics of the problem.
At this point, they might not necessarily be evaluating specific providers and their products or services. Instead, they’re looking for the types of solutions available to them.
In the first customer support example, the lead has not decided whether to buy a software solution for in-house support teams or outsource support altogether.
In the next sleep query example, the lead isn’t sure if they need a mattress topper or a new mattress altogether.
As you talk to them and ask questions to determine whether your offer fits their problem, your Leads become Qualified.
The content that best serves your leads at this interest stage includes in-depth guides, comparison-style checklists and lists of pros and cons.
Rich, answer-driven content makes it easier for the decision-maker to reach the purchase stage.
3. Bottom of the sales funnel: making an educated purchase decision
At the bottom of the funnel, leads understand their problem, have learned the best type of solution and are ready to select a provider.
The questions and concerns in this stage become vendor-driven and more specific, following the funnel’s narrowing shape at the bottom.
Their online searches, as well as their questions, might look something like this:
“Does [Provider 1] offer better support software features than [Provider 2]?”
“Who offers the longest and most complete warranty policy for mattresses?”
“What are the electricity contract terms with [Provider 1] versus [Provider 2]?”
At this stage of the buyer journey, long-tail keywords (e.g., “best soft mattress topper for back sleepers”) can help guide users to information that helps them make a decision that suits their exact needs, specific problems and budget.
The most effective content for the bottom of the funnel includes FAQ pages, product feature videos, live sales demos and side-by-side competitive feature analyses.
Each of these will reinforce the qualified lead’s confidence in your offer as they continue to see that it fits their specific problem.
When your qualified leads choose your solution, they typically go through the sales proposal and negotiation phases, after which you ideally win their business.
Real-life examples of sales funnels
The best sales funnel examples demonstrate how a salesperson guides the prospect from the moment they become a lead through to purchasing.
They do this by understanding a prospect’s key pain points and providing the right answers at the right time.
Sales funnels apply to most businesses, whether you’re a product marketplace, sell online courses or run a membership site.
Here are three examples of companies that have implemented this process.
Example 1: Twilio
Twilio offers communication APIs – a service developers can implement to embed voice calling and text messaging into a software application or a product.
Twilio knows how important it is to communicate its commitment to clients through headings like “Where amazing customer experiences are built.”
Meanwhile, the subheading talks specifically about “powerful communications APIs” – something regular consumers may not understand, but is likely familiar to Twilio customers.
Twilio: top of the funnel
Potential customers can easily find Twilio as their potential vendor when they search for a key term, “communication API software”, because the company ranks highly on Google.
Prospects can also find it on social media, through its blog or via a self-paced game that teaches how the product works.
Once prospects see the fit for their needs, they can either create a free Twilio account or request to talk to a sales rep.
Twilio even uses different call-to-action buttons to help guide prospects to where they want to go next.
Prospects can choose between “Start for free” or “Contact sales”, conveying that the company understands they may not be ready to buy and is there to help simplify the process.
Twilio: middle of the funnel
When a Twilio website visitor becomes a lead, a sales rep can leverage the information collected so far.
For example, the opt-in form asks for the company name, contact details and the product the lead is interested in. All of these details can help drive a valuable sales conversation and allow the rep to ask the right questions.
Based on the specific technologies, categories and past experiences the lead shares, the sales rep can inject relevant, personalized content into the initial conversations that speak directly to their problems.
Twilio has also set up its resource center to filter by role, solution and industry, so potential customers can self-serve based on their needs.
As reps gauge their lead’s response, they qualify them further, helping them progress down the funnel.
Twilio: bottom of the funnel
Finally, the lead considers Twilio as their solution. However, they have questions about pricing, implementation and the return on their investment.
Hyper-specific sales pages, such as customer stories, in-depth documentation and use cases, come in handy. The more relatable they are to the lead’s industry and scenario, the better.
Suppose the sales rep can satisfactorily address questions and concerns at the bottom of the funnel and convey the match between the lead’s problem and the solution. In that case, they’ll likely convert into a customer.
Example 2: Tricentis
Tricentis is an innovative software testing tool with a product suite that spans automation, integration and optimization.
Like Twilio, the landing page speaks to the exact solution its target customer is searching for. In this case, it’s AI-augmented engineering.
Tricentis: top of the funnel
You can easily find Tricentis when you search for a software testing tool because the company ranks highly for related SEO keyword terms, like “beginner guide to volume testing”.
Tricentis uses this visibility to build awareness with its target audience.
Potential customers who land on the website can then contact the company in several ways. For example, you can request a demo, start a free trial or have a team member contact you.
Tricentis: middle of the funnel
In the middle of the funnel, a sales rep has more information about the lead, such as their job title and company name.
A foundation like this is ideal for starting a qualifying sales conversation.
Customers at this stage might be looking to see whether a solution has helped people or companies similar to them before. This is where Tricentis’s reviews and case studies can speak to customers who are considering their options.
Tricentis also has a vast resource library, which enables it to nurture sales leads by sending targeted content for the challenges each is facing.
Tricentis’s e-books, reports and white papers are helpful here, as they provide in-depth details on a given topic and build the company’s authority.
If a prospect wants more information, a well-placed call to action (CTA) can connect them with a Tricentis salesperson.
Tricentis: bottom of the funnel
When making a purchase decision, Tricentis leads may need more information and reassurance that the product is the right choice.
In this situation, sales reps can direct the lead to helpful content, such as the brand’s ROI calculator, customer success stories and live expert learning events.
By matching their prospect’s needs and requirements and ensuring a good customer experience each time, they can win over highly qualified potential buyers.
Example 3: Anchor Fabrication
Anchor Fabrication is one of the largest contract metal fabrication partners in the US.
The company ranks highly for terms like “burden labor in metal fabrication”, as its team has optimized the website for those looking for metal fabrication contractors.
Anchor Fabrication: top of the funnel
Anchor Fabrication uses its website to encourage target visitors to take an action that converts them into leads.
Anchor reinforces the message of client-centered manufacturing with its certifications and the “Why Anchor?” explanation. It also offers invaluable resources for a range of issues potential first-time customers may be facing.
User-centric features like these act as lead magnets, attracting potential customers.
For example, you can watch a video on the benefits of manufacturing outsourcing, get several free guides and contact sales.
While a large amount of content might be considered excessive for a homepage, it showcases Anchor’s offer and hits right where key customer problems lie.
Anchor Fabrication: middle of the funnel
A sales manager or sales rep’s priority in the middle of the funnel is to qualify the lead as in-depth as possible.
They do this by positioning themselves as experts and offering guidance to build rapport.
Anchor Fabrication has built a comprehensive resource library for this purpose.
As sales reps answer questions and position Anchor Fabrication as a possible solution, these resources can also spark new questions and get the lead to naturally progress deeper into the customer journey.
Anchor Fabrication: bottom of the funnel
Finally, the lead will want to know if Anchor Fabrication is the best and most reliable option.
Sales reps can now go through industry-specific case studies as part of their sales funnel strategy.
Whether it’s about breaking down costs, time saved or successful past projects, salespeople can gauge which information will help push each prospect to sign up for their services.
The detailed descriptions on Anchor’s site of its services and the industries it serves help do exactly that.
Note: Each sales funnel example shown here demonstrates howsales and marketing work in perfect harmony to attract, nurture and impact the decision-making process of a potential customer.
The value of a sales funnel
A defined sales funnel brings many benefits to your organization’s health and revenue, as well as to the customer journey.
How a solid sales funnel impacts your prospects
By now, you’ve noticed the number of questions your potential customer might have before even thinking of purchasing from you.
Even though these concerns may arise at different times and in different orders for each of your prospects, your sales funnel helps you understand what they need to move to the next step.
Thanks to your funnel, you can deliver the right message at the right moment.
Imagine this scenario: you’re shopping for a new fridge. You’re not ready to buy just yet – you want to learn more about models, features and sizes.
However, as you get on the phone with a salesperson, they immediately jump onto pricing for their best-selling model. You can’t help but wonder if they’re just looking to boost sales activities and meet a quota.
You can save your future customers from the frustration of this scenario. With a detailed sales funnel in place, including a map of the prospect’s questions, you can deliver an aligned message every single time.
Pipedrive in action: Digital freight forwarder Sendify integrated Pipedrive with its marketing automation tool to optimize its pipeline. With features like email tracking and Scheduler, Sendify can now keep conversations with customers and leads top of mind, making it easy to stay organized across multiple customized pipelines.
Another way a sales funnel impacts your prospects is by enabling alignment between marketing and sales.
Remember, your prospects can get in touch with you at any stage of the sales funnel, whether it’s the early research or late decision phase. This is why it’s crucial to align your marketing funnel and sales efforts so that potential customers receive the information they need when they need it.
To accomplish this, your marketing team can leverage the prospect’s online behavior. For example, a lead may have spent time on your pricing page but didn’t convert. The marketing team could trigger a Facebook retargeting ad that speaks directly to that hesitation, like a customer testimonial or a limited-time offer.
As a result, you’ll convey the right message outside of your sales conversations, too.
A sales funnel also creates commitment and loyalty. As your prospect begins their research (via Google search or other search engines) and learns about solutions, they’ll realize how many options they have. Potential customers can easily switch to another solution provider.
This is why you need to be present in the sales funnel early on. Establish trust with your prospect by addressing all of the concerns that would influence their buying decision.
How a solid sales funnel impacts your organization
An effective sales funnel gives you an overview of where in the sales cycle your money is, where your opportunities for potential revenue are and how to boost your conversion rates.
A well-managed sales funnel organizes your sales efforts and gives you more control over your sales results.
Here are a few ways a high-quality sales funnel works for your business:
What you can do | Why it matters |
Dismiss unqualified prospects and focus on hot leads | Filtering out the wrong leads frees you up to invest time and energy in the deals that are most likely to close. |
Move deals through stages faster | When you know your funnel well, you can deliver the right information at the right time, shortening the time from first contact to closed deal. |
Track the sales metrics that matter | Monitoring key funnel metrics keeps your sales on track, your pipeline healthy and your time well spent. |
Many sales teams underinvest in tracking metrics and analytics. To make smart, confident decisions that lead to the best possible results, you need to know how your funnel is moving. Track these four metrics at all times:
Metric | What it tells you |
Number of deals in your funnel | Indicates health when weighed against your close ratio. |
Average deal size | How many deals you need to close to hit your revenue goal. |
Close ratio | Percentage of deals you win on average (baseline for forecasting). |
Sales velocity | How long a deal typically lives in your funnel before it’s won (helps with time management). |
Together, these metrics give you a clear picture of where your pipeline is right now and the actions you need to take to move it forward.
How to create a sales funnel
Now that this article has covered a strong sales funnel definition and sales funnel sample, you have a better understanding of how you can apply funnels in your own specific sales scenarios.
Here’s your guide to creating a simple yet powerful sales funnel for beginners and putting it into practice to help you attract and convert more leads.
1. Map your customer’s buying journey
Start from your customer’s perspective. Think through your customer’s buying process and the main decision points. . If you have multiple customer segments, do this for each one. It should take no longer than 10 minutes per segment.
2. Translate the customer journey into sales stages
Map those customer decision points to your internal sales process.
Each stage should represent a shift in the customer’s thinking.
3. Identify the right action and message for each stage
Put your funnel into practice by looking at each stage and asking what it will take for the lead to move to the next stage. Carefully examining each stage will help you determine which calls to action to use. A free trial? An e-book? An e-commerce product demo?
Then, identify your own corresponding action. For example, an email that includes relevant resources or testimonials to act as social proof.
4. Get your team aligned
Review the final stages with your colleagues. Make sure everyone agrees on how each one is defined and the measuring activities you’ll use at each stage.
If you’re a one-person operation, ask an industry peer. A second opinion often helps you spot any flaws in your plan before implementation.
5. Review, refine and look for opportunity
Revisit the sales stages after a month or two. If a certain stage is causing confusion, rename or delete it.
This is also a good time to look beyond the initial sale to see where you can get referrals, what you can upsell and how you can build loyal customer retention.
Free sales funnel template
Whether you’re an entrepreneur or a small business, you can download Pipedrive’s customizable free sales funnel template for Excel or Google Sheets.
Input your contact and deal details, then fully customize it based on your industry, pipeline and specific business needs.
Get organized with your free sales pipeline excel template
How to fix a sales funnel that’s losing leads
While your sales funnel can be a great source of success for your sales team, it can also become a frustration if you notice that:
The rate of leads you’ve won is low compared to the total number of leads
The sales process is taking significantly longer than expected or necessary
Many leads become uninterested or unresponsive
While a leaky sales funnel is frustrating, there are simple ways to address it.
Revisit your sales funnel from lead to close
You’ve already mapped out how to make your sales funnel measurable.
Now, it’s time to consider potential flaws in your system, such as internal processes that may affect the customer experience and make it harder for a prospect to do business with you.
Identifying these will help you break down barriers and make it easier for prospects to engage with you at every stage.
Review your initial lead response time
Speed can win deals. According to Workato’s sales funnel statistics, over 99% of business-to-business (B2B) companies don’t respond within five minutes.
The time it takes for your company to respond to leads once they hit your inbox may be the first source of a leak.
Make sure to review your process to prioritize lead response time and give yourself a competitive advantage.
Identify why you disqualify prospects
One of the overarching benefits of having a sales funnel is delivering the right message at the right time to your prospects.
If your funnel seems leaky, it’s time to analyze the leads that aren’t working for you.
Did they fit your ideal buyer persona? If so, why did they not show interest in your company?
There could be any number of reasons, such as pricing, market immaturity or a lengthy product implementation schedule. Knowing these issues is the first step toward addressing them.
How to manage your sales funnel day-to-day
Implementing an automated system can give you a visual overview of what’s happening at each stage of your sales funnel.
The more deals you work on at the same time, the easier it is for them to slip through the cracks and go cold. An automated system helps you keep an eye on all of them at once.
It can also send you reminders for critical actions, such as email marketing campaigns, to move each lead’s deal forward.
The solution? CRM software like Pipedrive. This type of platform can help you:
Forecast your sales for the upcoming month or quarter
Keep track of each lead’s activities
Leverage reminders and stay on top of hot deals
Organize your day to make the most of the hours you spend with your leads
Close deals faster
Automate certain sales activities
Here’s how you mark, filter and track lost deals using Pipedrive:
You can identify patterns that reveal why deals are lost, re-engage with deals that are worth it and keep your pipeline clean.
After you’ve defined your sales funnel, take the time to transfer the different stages into your CRM.
If you’re not using one already, choose one that makes you more efficient and productive.
When choosing your CRM, ask:
Does it help you focus on the most important sales activities?
Are you able to see everything that’s happening in your deals?
Does it allow you to stay organized?
Remember, only a CRM system that delivers better-quality leads and moves your deals faster will positively impact your organization. Take your time to understand what your sales funnel requires.
Final thoughts
With your potential customer’s pain points and questions in mind, you can map and implement a start-to-finish sales funnel for a more seamless customer journey that boosts sales.
Sales funnel CRM software like Pipedrive amplifies the value of the experience you offer. Try it free for 14 days to get the most out of your leads, optimize your sales workflows and build lasting customer relationships.
