What is a sales funnel?
If I ask this from software engineers, most of the software engineers don’t know about it because as a software engineer, I can understand their feelings and pain. But if you are working in an organization with different departments and people on the same vision and mission then it’s necessary to be aware of at least basic concepts. Whether you are a software engineer, product manager, UI/UX person or a sales person you should be aware about the basic concepts of end-to-end.
Now, you are thinking how it’s important and beneficial for a software engineer, right?
Let me explain this to you with a real incident which happened to me.
Most of the time we work in startups with a mutual understanding without following proper processes. Suppose if someone came from a business team and asked to develop something which is really important and urgent to them
Then what will you do?
Would you ask a product manager to create a wireframe first then I will do that?
No, if you are thinking like that then you are not a good fit to work with startups.
If you know what is the problem and how to fix that then what is the need to create a wireframe for that. You can fix that within an hour and after testing you can easily send this into production on the same day. But if you wait for a wireframe then it might be possible it won’t go live the same day.
One day a person came from a marketing team and told me the requirements.The changes were related to the sales funnel and were urgent. I understood the requirements and started working on the same. Within two hours I sent the changes into production.
The next day the same person from the marketing team came.and says
Good morning, Imtiyaz
Very good morning I replied.
What happened now? I asked.
There is a problem with the changes that you sent yesterday. I was surprised it was such a simple change. I asked curiously what was wrong with that.
He said it’s breaking our sales funnel.
How? Can you please explain? I asked him.
He said you put the three packages in a drop down list while it should be radio buttons.
What matters? I asked with a smile.
He said it matters a lot in sales conversion. I am not saying you did wrong. It’s working properly but it’s not good from a sales conversion point of view.
It was a minor change, right?
Instead of radio buttons I put their drop down list to choose the packages for the customers. Functional point of view it was correct but that was not correct for the conversion point of view. Because customers prefer to opt for what is in front of their eyes. In this scenario all the packages are visible with radio buttons but with drop down all the packages were not visible. This minor change was impacting the sales conversion.
That’s the reason I am more emphasizing that everyone should be aware of at least some basic concepts if we are working on the same vision and mission with the same organization. I was not aware about what a sales funnel is and its importance.
So now the question is what is a sales funnel and how does it work?
A sales funnel, also known as a marketing funnel or a conversion funnel, is a model used by businesses to visualize the customer journey from initial awareness of a product or service to making a purchase. The funnel is divided into different stages, with each stage representing a different level of customer engagement.
Typically, a sales funnel consists of four stages:
- Awareness: The first stage is when a potential customer becomes aware of a product or service. This can happen through various marketing channels such as advertising, social media, or word-of-mouth.
- Interest: Once a customer becomes aware of a product or service, they may show interest by visiting the website or learning more about the product.
- Decision: After the customer has shown interest, they move to the decision stage where they think about the pros and cons of making a purchase.
- Action: The final stage is when the customer takes action and makes a purchase.
Businesses use sales funnels to identify areas where potential customers drop off, and to optimize their marketing and sales strategies to improve conversion rates and increase sales. By understanding the customer journey through the sales funnel, businesses can tailor their marketing efforts to better meet the needs and preferences of their target audience.
Why should software engineers be aware about the sales funnel while working on marketing requirements?
Software engineers should be aware of the sales funnel while working on marketing requirements because it helps them to understand the user journey and create software that meets the needs of users at each stage of the funnel. When software engineers have a clear understanding of the sales funnel, they can design software that supports the overall marketing strategy and provides a seamless user experience.
Additionally, understanding the sales funnel can help software engineers to prioritize their development efforts. By focusing on the areas of the funnel that have the greatest impact on conversion rates, they can develop software that delivers the most value to the business.
Furthermore, when software engineers have an understanding of the sales funnel, they can collaborate more effectively with the marketing team. They can provide technical insights and expertise to help the marketing team to develop effective campaigns, and they can work together to measure and optimize the performance of the software and marketing initiatives.
Being aware of the sales funnel is essential for software engineers when working on marketing requirements. It helps them to create software that meets the needs of users and supports the overall marketing strategy, prioritize development efforts, and collaborate effectively with the marketing team.
I hope it gives you a good understanding and insights about sales or marketing funnel and its importance.
Now lets understand how to develop an effective sales funnel?
Developing an effective sales funnel requires a deep understanding of the target audience, their needs, and their behavior. Here are some steps you can take to develop an effective sales funnel:
- Define Your Target Audience: Identify who your ideal customer is and what they need. Create buyer personas to help you understand their goals, pain points, and preferences.
- Map Out the Customer Journey: Outline the steps that customers take to move from awareness to purchase. Identify touchpoints where customers may drop off or need additional support.
- Develop Content and Messaging: Create content that speaks to your target audience and addresses their needs at each stage of the funnel. Develop messaging that is clear, compelling, and consistent across all channels.
- Optimize Your Website and Landing Pages: Ensure that your website and landing pages are optimized for conversion. Use clear calls to action, minimize distractions, and make it easy for customers to move to the next stage of the funnel.
- Leverage Marketing Channels: Use a variety of marketing channels to attract, engage, and convert customers. This may include social media, email marketing, paid advertising, and content marketing.
- Measure and Optimize: Use analytics tools to measure the effectiveness of your sales funnel and identify areas for improvement. Test different messaging, offers, and tactics to optimize conversion rates and improve customer retention.
By following these steps, we can develop an effective sales funnel that delivers value to your customers and helps to achieve our business goals. Keep in mind that developing a sales funnel is an ongoing process that requires constant refinement and optimization.
Conclusion
I think there should be basic awareness of business words to all the software engineers. If we all have a basic understanding of all together we can achieve our company goals and targets easily. A software engineer can build a better product having a basic understanding of all business terms.