The sales funnel is defined as the pattern, plan, or actual achievement of converting prospects into sales, from pre-inquiry to the end of the sales cycle. Like any funnel, it is widest at the top and narrowest at the bottom. As illustrated in the Figure below, the order of the traditional sales funnel has typically been to discover a new opportunity, initiate communication, conduct fact finding, develop a solution, propose that solution, evaluate the solution, negotiate the details, create a purchase order, and maintain the account.

Figure 1: The Traditional Sales Funnel

The Internet and digital technology have changed everything. This systematic approach to the sales funnel doesn’t work anymore because today’s consumers are more informed, connected, and empowered than ever. According to a recent Harvard Business Review (HBR) blog post by Mark Bonchek and Cara France, the concept of the sales funnel has changed dramatically. The primary problem with the traditional funnel is that the buying process is no longer linear. Prospects don’t just enter at the top of the funnel; they can come in at any stage. Furthermore, they often jump stages, stay in a stage indefinitely, or move back and forth between them. For example, a consumer might log on to a website and add an item to their cart with a click, moving straight from awareness through consideration to purchase in just a few seconds. The same holds true for items that are discovered in Tweets, Facebook posts, or Pinterest boards. The key message in the HBR blog is that within B2B and B2C businesses alike, customers are conducting their own research online and with their colleagues/friends. They are then walking themselves through the funnel and coming in ready to buy.