What is Sales Funnel Stages?
Nexa Consultancy | Startup & Finance Glossary
A sales funnel illustrates the journey a potential customer goes through, from initial awareness to making a purchase. The typical stages are Awareness, Interest, Consideration, Intent, Evaluation, and Purchase.
Base Term for Startups: Understanding their sales funnel helps startups pinpoint where they are losing potential customers. By analyzing conversion rates between stages, founders can optimize their marketing and sales strategies to improve overall performance.
Base Term for SaaS: For a PLG SaaS model, the funnel might look like: Website Visitor -> Free Trial Sign-up -> Activated User -> Converted to Paid Customer. Tracking the conversion rates at each stage is essential for growth.
Base Term Calculation: Conversion Rate = (Number of users in Stage 2 / Number of users in Stage 1) * 100
Base Term Example: If 1,000 visitors land on a SaaS pricing page (Interest) and 100 sign up for a demo (Consideration), the conversion rate between these two stages is 10%.