Sales funnel
A model of the stages a person goes through from discovering a brand to buying (awareness, interest, consideration, purchase) and of the people lost at each stage.
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Why it matters
The funnel shows where the losses happen: if many visitors arrive but few add to basket, the problem is on the product page; if many add to basket but few pay, the problem is at checkout. Choosing the right message and channel for each stage makes the budget more efficient.
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Example
On a shop, 8 percent of visitors add a product to the basket but only 1 percent buy. Investigation reveals that the shipping fee appears only at the last step; once it is shown on the product page, the payment rate rises.
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Common mistake
Spending the whole budget at the bottom of the funnel, only on people ready to buy now. If new people do not enter the funnel, this audience runs out after a while.
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Related terms
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