What’s the Difference Between a Sales Funnel vs Sales Process?

What’s the Difference Between a Sales Funnel vs Sales Process banner image

A lot of people use the terms “sales funnel” and “sales process” interchangeably, but there is a big difference between the two. In this blog post, we’ll discuss what the sales funnel is, what the sales process is, and the pros and cons of each. We’ll also give you some tips on when to use a sales funnel and when to use sales process. Let’s get started!

What is sales funnel and what is sales process?

Sales funnel is the process of turning potential customers into paying customers , while sales process is a set of activities that a company uses to find, qualify and close sales opportunities.

The main difference between sales funnel and sales process is that sales funnel is focused on generating and nurturing leads, while sales process focuses on converting leads into paying customers.

Sales funnel typically consists of four stages: awareness, interest, decision, and action. The goal of each stage is to move the customer closer to making a purchase.

The main stages of the sales process are prospecting, qualification, needs analysis, proposal/presentation, negotiation/closing, and post-sale follow-up. The goal of each stage is to generate more sales opportunities and convert them into paying customers.

Both sales funnel and sales process are important for companies in order to increase revenue and grow their businesses. However, it is important to note that sales process is more focused on the actual sale, while sales funnel is more focused on generating leads and nurturing them until they are ready to buy.

Key differences between sales funnel and sales process

The terms “sales funnel” and “sales process” are often used interchangeably, but there are actually some key differences between the two. A sales funnel is a more general term that refers to the entire journey that a prospect takes from becoming aware of your product or service to making a purchase. The sales process, on the other hand, is a specific series of steps that you take to close a deal with a prospect.

Here are some key differences between a sales funnel and a sales process:

  1. A sales funnel is broader in scope. It includes all of the steps that a prospect takes from becoming aware of your product or service to making a purchase. The sales process is focused on the specific steps that you take to close a deal with a prospect.
  2. A sales funnel is more flexible. The steps in a sales funnel can be customized to fit your unique product or service and your customer’s needs. The sales process is more structured and typically has fewer steps.
  3. A sales funnel allows you to track prospects throughout their journey. This helps you identify where prospects are getting stuck and make changes to improve the chances of conversion. The sales process is typically focused on the final stages of closing a deal, so it’s more difficult to track prospects throughout the entirety of the process.
  4. A sales funnel can be used for any type of product or service. The sales process is typically specific to certain types of products or services.
  5. A sales funnel can be used by businesses of any size. The sales process is typically more complex and is used by larger businesses.
  6. A sales funnel is typically less expensive to implement than a sales process. This is because a sales funnel can be customized to fit your specific needs, whereas a sales process requires more resources to design and implement.
  7. A sales funnel can be implemented quickly. The sales process usually takes longer to implement due to its complexity.
  8. A sales funnel is more likely to generate leads. The sales process is focused on converting leads into customers, so it’s not as effective at generating new leads.
  9. A sales funnel gives you more control over the buyer’s journey. The sales process is more linear, so you have less control over how prospects interact with your product or service.
  10. A sales funnel is more scalable. The sales process is typically more complex and is difficult to scale.
  11. A sales funnel helps you build relationships with prospects. The sales process is focused on closing deals, so it doesn’t allow for much interaction with prospects.
  12. A sales funnel can be used in conjunction with a sales process. The two can work together to help you close deals more effectively.
  13. A sales funnel is more flexible and can be customized to fit your needs. The sales process is more rigid and may not be a good fit for all businesses.
  14. A sales funnel allows you to track prospects throughout their journey. The sales process only allows you to track prospects at the end of the process.
Funnel Made of Hundred Dollar Banknotes
Funnel Made of Hundred Dollar Banknotes

Pros of sales funnel over sales process

  1. Sales funnel is a more efficient way of managing the sales process as it allows you to track and measure each stage of the customer journey. This means that you can identify any areas where customers are dropping off and make changes to improve conversion rates.
  2. Sales funnel enables you to segment your audience so that you can tailor your marketing messages to them. This ensures that your message is relevant to their needs and interests, which makes them more likely to convert into paying customers.
  3. Having a sales funnel in place gives you a clear overview of your sales pipeline so that you can prioritize leads and manage your time more effectively. This helps you to close more deals and increase your overall revenue.

Cons of sales funnel compared to sales process

  1. Sales funnel offers fewer opportunities for personalization than sales process.
  2. Sales funnel may not be as effective in building relationships as sales process.
  3. Sales funnel can be less flexible than sales process, making it difficult to adjust to changing customer needs.
  4. Sales funnel can be more time-consuming than sales process, as it requires more steps to complete.
  5. Sales funnel can be less efficient than sales process, as it often involves duplicate or redundant tasks.
  6. Sales funnel can be more difficult to manage than sales process, as it requires more moving parts.

Pros of sales process over sales funnel

Sales process has a number of advantages that make it more effective for sales teams:

  1. Increased clarity – By having a sales process in place, everyone on the team knows what needs to be done at each stage of the sale. This increases clarity and helps avoid confusion.
  2. Improved efficiency – Having a streamlined sales process can help your team close deals faster. This is because there is less need for back-and-forth communication and documentation, and tasks can be completed more quickly.
  3. Greater accountability – When everyone understands the steps involved in the sale, it becomes easier to hold team members accountable for their performance.
  4. Better tracking – With a sales process in place, it is easier to track progress and identify areas for improvement. This helps you to continuously optimize your sales strategies.
  5. Increased customer satisfaction – By following a sales process, you can ensure that each customer receives the same high level of service. This leads to increased satisfaction and loyalty.
Simplify Your Sales Process
Simplify Your Sales Process

Cons of sales process compared to sales funnel

  1. A sales funnel is less expensive to implement. The sales process is more costly to implement due to its complexity.
  2. A sales funnel can be implemented quickly. The sales process takes longer to implement due to its complexity.
  3. A sales funnel gives you more control over the buyer’s journey. The sales process is more linear, so you have less control over how prospects interact with your product or service.
  4. A sales funnel helps you build relationships with prospects. The sales process is focused on closing deals, so it doesn’t allow for much interaction with prospects.
  5. A sales funnel is more scalable. The sales process is typically more complex and is difficult to scale.
  6. A sales funnel is a better fit for businesses of all sizes. The sales process is typically more complex and is best suited for larger businesses.

Sales funnel vs. sales process: Which is right for your business?

The main difference between a sales process and a sales funnel is the level of control that you have over each stage of the sale. In a sales process, you are in complete control over every aspect of the sale from start to finish. You decide when and how to contact prospects, what information to share with them, and how to close the deal.

In a sales funnel, on the other hand, you have much less control. Once a prospect enters your funnel, they will progress through it according to their own timeline and interest level. You can influence their behavior to some extent with things like lead nurturing and targeted content, but you can’t force them to take any particular action.

Another key difference is that a sales process is typically much shorter than a sales funnel. Most sales processes only have a few steps, whereas a typical sales funnel may have dozens or even hundreds of individual steps.

So which is better? There’s no simple answer to that question. Each approach has its own advantages and disadvantages.

If you need complete control over every aspect of the sale in order to close deals consistently, then a sales process is probably your best bet. However, if you’re willing to sacrifice some control in exchange for a potentially larger number of closed deals, then a sales funnel may be the way to go.

There are pros and cons to both approaches. It’s ultimately up to you to decide which one will work best for your business.

sales funnel chart
sales funnel chart

Situations when sales funnel is preferred over sales process

Sales funnel is generally preferred over sales process when:

  1. the products or services being offered are complex or high-end
  2. the sales process is lengthy and involves multiple decision-makers
  3. the buyer’s journey is nonlinear, with multiple touch points along the way
  4. there is a need to track and measure progress at each stage of the funnel

Situations when sales process is preferred over sales funnel

Sales process is preferred over sales funnel when:

  1. The product or service is highly complex
  2. The sale involve multiple decision makers
  3. The sales cycle is long
  4. There is a need for high touch interactions with prospects
  5. Price is a major consideration for the customer
  6. Customization is required
  7. The product is new to market
  8. The customer is unknown
What’s the Difference Between a Sales Funnel vs Sales Process pin

Sales Funnel vs Sales Process Summary

That’s it for now on the difference, pros and cons of sales funnel and sales process. As you can see, there are situations where one is better than the other. We hope that this article was helpful and provided you with a better understanding of the sales funnel and sales process. If you have any questions or want to know more about how to use either of these techniques in your own business, leave a comment below. We would be happy to answer them!

AspectsSales FunnelSales Process
ScopeBroader in scope, includes all steps from awareness to purchaseFocused on specific steps to close a deal
FlexibilityMore flexible, can be customized to fit unique needsMore structured, typically has fewer steps
TrackingAllows tracking prospects throughout their journeyFocused on final stages of closing a deal, harder to track entire process
ApplicabilityCan be used for any type of product or serviceTypically specific to certain types of products or services
Business SizeCan be used by businesses of any sizeMore complex, typically used by larger businesses
CostTypically less expensive to implementMore costly due to complexity
Implementation TimeCan be implemented quicklyTakes longer to implement due to complexity
Lead GenerationMore likely to generate leadsFocused on converting leads into customers
ControlGives more control over the buyer’s journeyMore linear, less control over prospect interaction
ScalabilityMore scalableMore complex and difficult to scale
Relationship BuildingHelps build relationships with prospectsFocused on closing deals, less interaction with prospects
ProsEfficient way of managing sales, allows tracking and measuring each stage, enables audience segmentation, gives clear overview of sales pipelineIncreased clarity, improved efficiency, greater accountability, better tracking, increased customer satisfaction
ConsOffers fewer opportunities for personalization, may not be as effective in building relationships, can be less flexible, more time-consuming, less efficient, more difficult to manageMore costly to implement, takes longer to implement, less control over buyer’s journey, less interaction with prospects, difficult to scale
Situations PreferredWhen products or services are complex or high-end, sales process is lengthy, buyer’s journey is nonlinear, need to track and measure progress at each stageWhen product or service is highly complex, sale involves multiple decision makers, sales cycle is long, need for high touch interactions with prospects, price is a major consideration, customization is required, product is new to market, customer is unknown
Sales Funnel vs Sales Process Summary

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