Sales funnel is the process of selling from its initiation to the point when a sale is actually completed. It actually tries to examine the degree of readiness of a buyer from the time a seller approaches him till the time he actually buys or is committed to buying. During this conversion process some customers become disinterested and fall out.
Stages in the Sales funnel
A sales funnel has six stages summarized as SPANCO (suspect, prospect, approach, negotiation, commitment, and order). Each of these is a phase in a selling cycle and could last several days. The conversion from S to O varies with product, customer need perception, and market environment.
The process of sale begins from his stage. For a marketer every suspect could become a prospect and ultimately a customer. Any individual or organization with money, authority and need is a suspect. These three are the pre-requisites for any buyer. Any person having a need, buying resource and the power to decide could mature into a customer. For a seller it is important to identify such individuals.