Did you know that 37% of shoppers turn to social media for inspiration?
Whether it’s seeing an ad for a product or service, the ideal customer likely comes to mind. Understanding the sales funnel vs pipeline is vital to selling goods.
The way that you choose to market your products and services is going to determine how many sales you can make. Depending on your budget, skills, and the market that you’re in, you might switch up your sales funnel, or you might try to work on your pipeline.
For some sales funnels and sales pipelines, check out our guide below. Keep reading!
What Is A Sales Funnel?
A Sales Funnel is a visual representation of the journey a user or potential customer takes when they interact with your business. The top of the funnel is when users first become aware of your product or service, the middle of the funnel is when they consider it, and the bottom of the funnel is when they purchase. It is better for introducing your business to prospects.
The Sales Funnel is used to build interest in your products and services and to identify qualified leads. It enables you to qualify leads that have the best chance of converting into customers.
What Is A Sales Pipeline?
A sales pipeline is a step-by-step system that takes a prospect from the top of the funnel and guides them to the sale. It focuses on identifying opportunities, establishing relationships, qualifying leads, proposing solutions, and closing sales. The sales pipeline is better for businesses that need to establish trust and relationships, win deals, and do extensive customer research.
It allows for more in-depth lead assessment and greater control over the process. It is most suitable for long-term customers and products with complex solutions. It is essential that sales pipeline management is well implemented and maintained to ensure that resources are effectively utilized and that sales are optimized.
Factors To Consider When Choosing Between Sales Funnel & Pipeline
When selecting between a sales funnel and a pipeline for your business, there are a variety of factors to consider, such as:
Your Desired Outcomes
If your desired outcome is a higher completion rate per sale, then a sales funnel may be the better strategy. Funnels are designed to be linear, such that each step in the funnel leads to the next until the customer reaches the final purchase.
A sales pipeline, on the other hand, is more organized in the sense that it provides visibility into the customer’s progress through the sales process, but it does not necessarily lead to a completion rate. Therefore, if your desired outcome is to make more sales on average, then a sales pipeline may be the better strategy.
The time frame for business success is one of the major considerations when it comes to choosing between a sales funnel and a sales pipeline. The key is to assess your business needs and the time frame required to reach the desired outcome.
For shorter time frames, a sales funnel is the better choice as it allows for more immediate sales. For long-term relationships, the sales pipeline is the better choice as it provides more sustainable long-term relationships. In any case, it is important to also factor in the resources and staff requirements for each option.
When it comes to budget, both sales funnel and pipeline have their advantages. Sales funnels tend to cost less upfront but can take more time to convert leads into customers. It is harder to identify the weak points in the funnel that need to be adjusted for improved conversion.
Conversely, a sales pipeline takes more upfront cost for implementation and maintenance but is much easier to evaluate and adjust in order to optimize conversion within the budget. Furthermore, prospects can be placed into higher priority slots if sales staff has the budget to focus on more important leads.
It really depends on what goals the business needs to achieve and the budget available.
Benefits Of Using A Sales Funnel
A sales funnel provides many benefits for your business. With a sales funnel, you can customize your brand’s messaging and create automated processes to save time and resources. Your business can track changes in customer behavior and identify opportunities to convert leads.
Because it’s a visual tool that’s easy to map out and follow, a sales funnel makes it simpler and more efficient to identify where you are in the sales process at any given time. It promotes greater engagement with leads, makes tracking progress simpler, and helps you optimize your customer experience.
Benefits Of Using A Sales Pipeline
Sales Funnel vs Pipeline, which is better for your business? The answer to this question depends on your specific business needs and the goals you are trying to achieve. A sales pipelines are better for businesses that need to generate larger, long-term sales. Here are some of the benefits of using a sales pipeline. It can help you track and monitor your prospects so that you can follow up as needed.
It can help you identify neglected contacts and leads who may become valuable customers. It can help you refine and customize your sales process and strategies, for greater success. With a sales pipeline, you can make sure that your sales process is as efficient and productive as possible.
Determine Your Sales Goals Before Choosing Sales Funnel vs Pipeline
Despite the differences between the two, determining whether a sales funnel or pipeline is best for your business ultimately comes down to the size of your company and your unique sales process. Smaller-scale companies tend to benefit from the funnel approach, whereas larger-scale companies tend to fare better with the pipeline approach.
Ultimately, using both approaches together produces excellent results. Try it out and see the transformation for yourself.
If you’re looking for more ways that will help you with your business, check out our blog. We have more articles that can help you grow and broaden your horizons.