What is a CRM funnel?

Your business depends on customers and the relationships you build with them. It is important to understand how they relate with others as part of increasing awareness of your brand. These relationships depend on maintaining communications and connections with your customers. A customer relationship management (CRM) funnel can help you to develop and manage leads, add to your customer base, and grow your business.

A CRM funnel is a methodology (as well as software) for tracking and communicating with current and potential customers. It enables you to track sales history, conversations, promotions, and other elements of the customer relationship. It also makes it easier to identify potential customers and those who have no interest in your offerings.

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CRM funnels are similar to sales funnels, which are designed to attract and convert leads into customers. They enable your business to track and manage leads, as well as to determine steps along each stage of the funnel to move leads to the next stage. You can use a sales funnel to create a CRM funnel, which works within your CRM tool to automatically track the progress of your leads, and then nurture and engage leads along the path to becoming customers.

Key takeaway: A CRM funnel mirrors a sales funnel and serves to capture data on leads as they move closer to becoming paying customers.

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