What is the Difference Between a Lead Generation and a Sales Funnel - LeadArm

Here’s something that you probably know about already: lead generation and sales funnels are two different things. Contrary to popular belief, they are not one in the same. That’s why we’ve put together this guide to give you an in-depth explanation of what makes it the case.

Even though lead generation is part of the sales process, it has its own funnel. To better understand this, the leads are like the fuel to your sales funnel (which is the car). Let’s go even deeper to help you understand this difference between the two funnels so you know how things work in terms of getting the sales you want.

Lead Generation Funnels Explains

A lead generation funnel is actually part of the funnel itself. You heard right, it’s the “top of the funnel”. At this point, it will be the initiation point for acquiring customers.

The chief objective is attracting potential customers and converting them into leads. This will be done throughout several different phases. Here’s a look at what each of them are:

Awareness

To begin, creating awareness will be the name of the game. You want people to be made aware of your brand, product, or service. To do this, you want to utilize marketing channels where your target audience is prevalent.

This can include the use of social media, content marketing, and search engine optimization (SEO). All three will reach a broader audience when implemented properly.

Interest

After awareness is established, the next thing to do is pique their interest. You want to make sure the content is engaging, informative, and interactive. Once you capture their attention, you’re in business and will be able to easily move them onto the next stage (barring anything disastrous).

Capture

Now this is the fun part. At this point, you will need to collect their contact information. This can include their name, email, phone number, etc. Whichever information makes the most sense, collect it from them.

There is a catch however. You need to give them something back in return. This can be in the form of an enticing offer that will get them to say “yes” and hand over their contact information without hesitation.

What can you give them in return? That depends on your business. It can be a free trial of something you offer, a discount coupon, or something that can score them a quick solution to a problem they’re facing.

Nurture

Finally, you managed to capture leads. They will mostly be on a list such as an email subscribers list. At that point, you’ll nurture them by sending target communications.

This can include emails sent on a regular basis (depending on your referred frequency). Doing this can not only build your relationships with your leads, but it can also warm them up into becoming loyal buyers.

Keep in mind that not every lead will have the same time table to decide when to buy. It may take a few emails for one lead to buy. It may take a while longer for others. The important thing to remember is that not every lead is created equal.

Sales Funnel

The sales funnel is known as the “bottom of the funnel” or BOFU. This is where the generated leads will be taken to in order to complete the process of the purchase. Of course, the chief objective here is to convert as many leads into paying customers as possible for maximum revenue.

Since we’ve offered a roadmap for lead generation funnels, now we focus on the sales funnel. Here’s the process from start to finish:

Qualification

This is where you assess the quality of the leads that were generated from your lead generation funnel. Your sales team will evaluate the potential of these leads based on several factors. They will include budget, authority, need, and timeline or BANT.

Engagement

After the leads pass through the qualification stage, that’s where they enter the engagement phase. At this point, your sales team will be able to interact with them directly. This may include one-on-one consultations, product demonstrations, or addressing any specific queries the customer may have in an effort to build mutual trust and understanding.

Proposal

Here, your business will offer a proposal or quote to the client or customer. This will outline the product or service that will outline the latter’s needs. This will include service offerings, pricing, and any additional terms that may arise.

Closing

This is pretty self-explanatory. You’re sealing the deal and turning the lead into a paying customer. At this point, you’re also going to try and clear up any issues and objections that may hinder this final part of the sales puzzle.

Retention

Just because the customer buys doesn’t mean the journey ends. Retention is when you have to focus on maintaining and enhancing the relationship. This can come in the form of customer support, loyalty programs, and ongoing communication to help foster a positive experience.

So What Are The Key Differences Between The Two?

It is important to know what the key objectives between these two funnels are. So let’s have a look:

• Lead generation funnels will focus on generating awareness and capturing leads. The sales funnel will convert the leads into paying customers.
• The type of metrics will differ. For lead generation, you’ll have website traffic, engagement, and captured leads. Sales funnels focus on conversion rates, retention rates, and average deal sizes among others.
• Lead generation content will educate and create interest. Sales funnel content will nurture the leads while addressing product features, pricing, and the benefits of a product or service that is offered.

Let Lead Arm Track All Of Your Lead Generation Campaigns Easily

When it comes to tools that can keep track of your numbers, Lead Arm can handle it. You could be monitoring leads or moving them along the stages of a sales funnel.

Either way, you can monitor it all in real-time with Lead Arm. For more information on how we can help, be sure to contact Lead Arm today and we’ll address all of your needs.