In this article, we'll discuss the differences between sales funnels and relationships funnels, as well as how to combine the two for effective growth strategies and experience management, particularly for B2B service-based businesses.
What is the difference between the sales funnel and the relationship funnel?
A sales funnel and a relationship funnel may appear to be the same thing. Both have the goal of attracting and converting customers. However, they are significantly different.
The sales funnel helps businesses to increase the conversion rate by selling products to more customers, while the relationship funnel helps the business owners to build strong, long-lasting, and friendly relations.
The line between them still a bit blurry? Let's dive into details.
What’s a sales funnel?
The sales funnel (also known as a revenue funnel) refers to the buying process that companies lead customers through when purchasing products.
It is a well-known model of the business sales process where leads enter at the top and – hopefully – emerge as new customers at the bottom.
The funnel can be complex, since it takes time from a prospective buyer becoming aware of your business to the moment they decide to make the purchase.
Depending on your industry, the number of stages and the length of the sales cycle may vary. However, the goal is the same: to visualize the pathway to attract leads and convert them into paying customers.
In this article, you can learn exactly how to build a sales funnel for your business.
Why should you use a sales funnel?
Sales funnels allow companies to visualize each step that prospects take on the path to conversion. Each step is a micro-conversion that can be optimized to increase conversions in the end; if one of these steps shows a higher-than-expected drop-off rate, it can be analyzed to see what’s wrong and test out possible improvements.
What is a relationship funnel?
Consumer and market trends are continuously changing today, and companies must adapt. Today's consumer expects a provider who is dependable, scalable and the finest in the industry.
The core purpose of the relationship funnel is to nurture the relationship with their customer.
The right CRM tools will help businesses to strengthen their relationship with their clients.
As a result, the business owners will have a higher customer retention rate and get more referrals and repetitive business.
Later, sell prospects the solutions to their problems. If you’ve done a good job of building the relationship, your prospects will be willing and even eager to buy from you.
Should you use a relationship funnel?
Regardless of the context, yes. Relationship funnels focus on building long-term relationships with customers and work better to satisfy customer expectations.
How? Instead of focusing on selling, you put a customer's needs first and establish a trust to achieve optimal results.
No matter what industry you operate in, relationship building is the key to winning new business from new and existing customers. As you focus on nurturing the needs of your customers, remember that the mutual benefits you provide will go a long way to accelerate the growth of your company.
Which funnel is more buyer-centric?
Both the sales and relationship funnels serve a purpose, and they are interdependent in order to provide a consistent customer experience.
The sales funnel is more buyer-centric, since it helps businesses increase the conversion rate and filter the leads based on their interest, purchasing capacity, and intent.
However, in order to keep customer relationships stable, every company needs a perfectly crafted relationship funnel.
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