💵 Definition and Significance of the Sales Funnel
🔹How Does a Potential Buyer Become an Actual Customer?
The Sales Funnel is the path that a potential buyer takes until they become an actual customer. Each step of the funnel represents a control point – after the user sees your offer, becomes interested, and finally decides to make a purchase.
This structured approach allows companies to systematically monitor and direct communication with the audience at every stage.
For example, existing statistics show that the probability of a sale to an existing customer is 60–70%, while for new users it is only 5–20% – this means that working on customer loyalty and retention (“the bottom of the funnel”) is critical – a customer who has already chosen you is significantly more valuable, and it’s easier to convince them to make a repeat purchase.
Globally, nearly 570,000 websites use tools for sales funnel management and optimization. That’s why it’s not surprising that a well-designed and optimized funnel is considered key to success in digital marketing.
In practice, **companies with a clearly defined sales funnel record on average double the contract values** than those that don’t. Conversely, only 17% of marketers have a truly functional and tracked funnel – meaning most companies are missing out on huge opportunities for growth.
Therefore, understanding the funnel and regularly testing it is absolutely essential for modern business.
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🔹Sales Funnel Stages (Awareness, Consideration, Decision, Loyalty)
The sales funnel consists of several key phases that the user goes through:
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Awareness: In this phase, potential clients are just becoming aware that they have a need or problem and that your solution exists. They gain their first contact with your brand through ads, social media posts, SEO optimization, AI optimization, and referrals. Original research shows that it is important to place your presence where the target group is most present.
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Consideration (Interest/Consideration): Once the user learns about you, they start researching more – reading blog posts, following social media accounts, or exploring your website. In this phase, they compare different options and look for information that will help them solve the problem. Here, communication should be informative and offer additional value (e.g., detailed blogs, guides, or video tutorials) to maintain their interest. In fact, 55% of companies claim that articles and blogs are the best way to guide potential buyers through the funnel. Quality content in the middle-of-funnel shapes the brand perception and builds trust.
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Decision (Desire/Action): In this phase, the buyer prepares to make a purchase. This is the “critical moment” – up to 80% of transactions with repeated contacts can occur here. The buying process should be simple, and the offer itself attractive (discounts, gifts, or special benefits can alleviate final indecision). For example, offer a free trial, a demo version, or detailed calculators to help the user move on to “action.” If a purchase doesn’t happen immediately, it is important to follow up with retargeting emails or remarketing campaigns – so your brand doesn’t fall into oblivion.
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Loyalty (Retention): Once the customer has made a purchase, the work doesn’t end. The loyalty phase includes all post-sales activities – good customer support, a loyalty program, upsell and cross-sell offers, or regular newsletters. Statistics show that as much as 65% of total revenue is generated through existing customers. Since the chance of selling a second time to someone who has already shown you trust is significantly higher (as much as 3–35 times) than selling to a new customer, it indicates that investing in loyalty pays off manifold. Therefore, carefully analyze the results – indicators such as NPS (Net Promoter Score) or repeat purchases are extremely important for business growth.
Each of these phases aims to convert as many initial contacts as possible into actual customers – or at least to maintain the connection until the customer is ready for the next purchase.
The cascading reduction in the number of users from top to bottom is inevitable (some end their journey in some part of the sales funnel), but a well-designed funnel minimizes “leakage” and guides users as assertively as possible toward the final purchase.
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🔹The Sales Funnel in Digital Marketing and the Omnichannel Approach
In modern marketing, the sales funnel is applied through a wide range of digital channels, often as part of an omnichannel strategy. Digital marketing ensures that every part of the funnel is covered by appropriate tactics:
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SEO and Content Marketing: The beginning of the funnel often starts with organic or paid search. Create blogs, guides, and optimized landing pages to attract traffic. As we’ve seen, high-value content – articles, case studies, educational videos – not only attracts attention but also guides users through the funnel. Specifically, 55% of companies consider blog posts the best way to guide potential buyers through the funnel. In practice, this means that at the top of the funnel, we invest in SEO-optimized content and social media that informs (e.g., tutorials, downloadable e-books, webinars).
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Ads and Paid Marketing: In the middle and at the beginning of the funnel, paid campaigns (Google Ads, Facebook Ads, LinkedIn Ads, and the like) are often used to reach the target group and draw their attention to specific offers. Retargeting ads, for example, target those who have already shown interest (visited the site or added a product to the cart) and can improve conversion by as much as 147%. At the same time, email campaigns and CRM tools serve to nurture leads through all phases: segmented emails remind them of the brand, send useful tips, or exclusive offers. Statistics confirm that email is the most effective channel for communication at every stage of the sales funnel.
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Social Media and Video: Social media and video platforms are powerful tools for awareness and interest. Short educational videos or interactive posts on social media can motivate users to visit the site. For example, using video in the middle of the funnel can increase the conversion rate by as much as 66%. This is especially important in the B2C segment, where visual content quickly retains attention.
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Mobile Marketing: In 2025, a large number of users first receive information via mobile phones. Over 75% of online retail traffic comes from mobile devices. However, although mobile devices dominate traffic, the conversion rate is still higher on desktop (3.2% on desktop versus 2.8% on mobile). This means that it is important that your landing pages are perfectly adapted for mobile users. Mobile adaptation can increase conversion by as much as 160%, which shows the potential in optimizing the user experience on the phone.
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Analytics and Optimization: Every digital channel provides valuable data. Using analytics tools, you can measure metrics such as email open rates, site retention rates, purchase rates, etc. For example, analysis shows that only approximately one-third of people even begin filling out a form on a landing page, and less than half of them finish. Such insight allows you to identify the funnel phases where you are losing customers. That’s why you should always test – A/B testing of headline messages, call-to-action buttons, or colors and layouts can significantly improve conversions.
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🔹Omnichannel Approach
Omnichannel marketing denotes the unification of all communication channels so that the customer gets a uniform experience, regardless of the platform or device. Statistics show that omnichannel is crucial for customer retention: as many as 89% of companies with an omnichannel strategy retain their customers in the long term.
Even more impressive, such efforts can multiply sales – one study showed that an omnichannel campaign can achieve up to six times more sales than a campaign focused on a single channel.
In practice, customers today spend about 90% of their time searching across multiple devices (phones, tablets, computers) before buying.
According to “Think with Google” data, about 80% of store visitors physically make a purchase after previously researching products online. This means that online and offline channels intertwine: companies that unite these two worlds record significant growth.
Specifically, Target’s example shows that customers who combine online and offline shopping spend ten times more than those who only buy online. Furthermore, using three or more channels in one campaign can yield up to 287% higher purchase rates than when only one channel is used.
By applying the omnichannel approach, your channels become synchronized: a user can see an ad on Instagram, visit a store, receive a reminder email, and complete a purchase on the website, while their experience remains the same and connected. This increases the frequency of purchases (on omni-platforms, it can be 250% higher than on an individual channel), builds trust, and minimizes the risk of the user switching to the competition due to message inconsistency.
🔹Statistics from 2024 and 2025
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E-commerce and Omnichannel: New data from 2024/2025 shows that the dominance of mobile devices is undeniable (about 75% of traffic), but companies still need to complete conversions particularly on desktop. The desktop purchase rate – about 3.2% – should be viewed as a goal, and solutions (faster loading, simplified checkout) are gradually being implemented on mobile, as current data shows 2.8% conversion on mobile.
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Channels and ROI: Data-driven marketing is becoming the standard. For instance, retargeting has become so effective that it can increase the conversion rate by up to 147%, and personalized calls to action (CTAs) achieve as much as 202% better conversion than generic ones. These numbers indicate that every nuance of the message can improve sales.
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B2B vs B2C: In the B2B segment, the sales funnel is often more complex and longer than in B2C. B2B buyers usually involve a team of 6–10 decision-makers (from end-users to C-level managers), and the buying process can take significantly longer than in B2C. In the B2C world, decisions are often more individual and made faster (e.g., buying fashion clothes or a technical gadget), while B2B transactions usually have a higher value and require more research. Therefore, communication is also adjusted: B2B focuses on expert education and building trust, while B2C can emphasize more emotional or lifestyle aspects. Regardless of the segment, the basic logic of the funnel is the same – only the tactics will differ.
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Loyalty and CRM: Statistics say that 65% of revenue comes from existing customers. This indicates that the probability of selling to current clients is up to 35 times higher than to new ones. Only rare companies disregard this: 68% of B2B organizations still haven’t clearly defined their sales funnel, meaning they are either wasting time or sales opportunities. It is important to constantly track metrics: for example, companies that keep detailed records of the funnel achieve significantly better results (63% of top firms have a documented and analyzed funnel).
🔹Funnel Optimization and Communication Personalization
Once you have set up the funnel, the next step is to continuously improve it. Funnel optimization involves:
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Tracking Key Metrics: Set goals for each phase (e.g., expanding the email subscriber base, number of guide downloads, landing page conversion, purchases). Measure feedback: email open and click rates, site bounce rate, time spent, etc. Identify where you are losing potential customers and why: is it an overly long form, an unclear offer, or poor customer support? Analytics and CRM tools (Google Analytics, HubSpot, Salesforce) can specifically show you the abandonment points. For instance, data shows that most people abandon online forms without completing them (only 33% even start filling them out, and less than 50% finish). This insight emphasizes how important it is for forms to be short, clear, and with a visible benefit for the user.
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A/B Testing and Results Tracking: Test different variations of ads, calls to action, and page designs. Even small changes (button color, headline length, arrangement of image and text) can lead to big differences. Studies show, for example, that a personalized CTA (e.g., “[Name], check out your offer”) can increase the conversion rate by 202% compared to a generic call to action. Likewise, a video tutorial or a short prompt in the middle of the funnel can increase the probability of purchase by about 66%. The optimization process is constant: as the market evolves, adjust the funnel accordingly.
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Communication Personalization: Today’s users expect to be treated individually. About 71% of consumers today expect personalized offers and communication from brands. Personalization involves segmenting the audience and sending tailored messages. This means using data on user behavior (for example, purchase or browsing history) and demographic information to create unique messages. Applying personalization can dramatically increase the funnel’s effectiveness – for example, companies that offer personalized product recommendations record an increase in the conversion rate of up to 320%. Also, personalized emails and automatic sequences retain attention – one study shows that emails created based on user behavior have an open rate six times higher than regular emails.
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Marketing Automation and AI: Use software platforms for automatic sending of emails, messages, and tailored content. Modern systems (CRM, marketing automation) allow, for example, a user who has studied a certain product to automatically receive an email with additional information or a discount. Such an “intelligent funnel” uses artificial intelligence to predict what the customer needs in the next step, optimizes the timing and channel of communication, and practically makes every step of the funnel more precise.
In short, it is important for your funnel to be a living process, not a static plan. Optimization and personalization are a continuous part of daily business: only in this way will you give the sales funnel the power to work for you, rather than just tallying losses.
🔹 Conclusion – How to Harness the Power of the Sales Funnel for Business Growth?
The sales funnel is more than a concept – it is a strategic weapon. By systematically monitoring and improving each step, from the first click to a repeat purchase, you can multiply your revenue and the value of each customer. Regardless of whether you are an e-commerce beginner or an experienced business owner, a well-designed funnel will set you apart from the competition.
Now is the time to take control of the customer journey in your business: analyze data, test hypotheses, and create personalized offers.
If you are unsure where to start or want to elevate your funnel to a professional level, we invite you for a consultation.
Our team of experts will help you identify weak points in the funnel, optimize your strategy, and set up an effective campaign that will attract more customers.
By investing in your sales funnel, you are investing in the future growth of your business – contact us today and together we will build a funnel that converts visitors into loyal customers.
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🔥 Nebojša @ Skenderovic Consultants
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