Sales Strategy

$27M in ARR using this sales funnel template

lemlist team
LAST UPDATED
April 11, 2024
READING TIME
7 min.

Sales is a game of stages. Having a process is a necessity if you want to build a successful business long-term. This process is called a sales funnel and in this article we are going to show you our free sales funnel template that generated $27M ARR.

When the lemlist growth team was formed, our core focus was on three pillars. Actionable content to grab attention, enjoyable product onboarding experience and major push to build a deep connection between the lemlist brand and lemlisters.

Our sales funnel lies on these pillars. Today, I'll talk about it in great detail and share all the secrets that helped us achieve some brilliant results. 👇

The most interesting topic would definitely be this exclusive insight into our simple sales funnel where I'll walk you through the things we did across all stages of the funnel.

You'll also discover a bunch of kickass examples from companies operating in different industries that simply crushed it.

Don't worry, we'll cover the basics too...

What is a sales funnel?

I've heard people speaking about "sales funnel" and "sales pipeline" as if they are the same. They're not. Here's the difference real quick...

Sales funnel definition

Sales funnel represents the prospect's journey from their first contact with your company until the moment your product or service has been purchased.

Sales pipeline outlines all the steps of your sales process. Meaning, set of exact actions prospects needs to take to complete the purchase. Remember how you have these steps...

--> Contact Made > Meeting Booked > Meeting > Contract Offer > Deal Won

... that's a pipeline.

But the easiest way to think about it is... funnel feeds the pipeline. Without a funnel, sales teams wouldn't have leads to process in the first place.

We'll talk about pipelines and best practices in one of our next articles that are coming soon. Particularly after this conversation in the TSAC community...

The Sales Automation Family post

Sales funnel stages

It's not about having a funnel for sales and another for a marketing team. Any company has one funnel, but multiple departments have a different role to play in it.

It's bonkers to advocate for a one-size-fits-all model too. With so many industries, types of businesses and team sizes involved, there's no sense in copy/pasting someone else's sales funnel example.

There are similar patterns to leverage but at the end of the day, we ought to tailor it to our customers and their journey.

Sales Funnel Example

Top-of-the-funnel

Top-of-the-funnel stage, or TOFU, is the playground for attention and discovery.

  • Prospects are unaware of you, your company and your solution
  • Quite often, they're not 100% sure about their problem
  • They're not looking to buy

These three bullets translate into a pretty clear strategy. Make prospects discover the solution by being fully aware of the problem.

There are three types of weapons to choose from...

  • Tone: are we educating, informing or entertaining?
  • Strategy: outreach, content marketing, events & PR, advertising
  • Format: cold emails, blog posts, social media posts, podcasts, how-to guides, infographics, Facebook ads, conferences, etc.

The trick is to find out what works best for your needs and don't do everything at once.

Middle-of-the-funnel

Middle-of-the-funnel, a.k.a. MOFU, is where things get interesting. Where we turn prospects into leads.

  • Prospects are starting to evaluate whether you can solve their pain
  • They now know who you are
  • You're competing and your rivals come in all kinds of forms

Keep in mind that they are now very well aware of the problem. Their questions are super specific, BS sensors are sharper and they have certain expectations you need to meet. This is the time where you deliver things in greater detail.

The armory changes a bit...

  • Tone: are we educating or incentivizing?
  • Strategy: drip campaigns, content marketing, re-marketing...
  • Format: email sequences, retargeting ads, lead magnets, communities, case studies, webinars, special offers...

Bottom-of-the-funnel

Finally, there's bottom-of-the-funnel stage or BOFU.

  • Prospects are ready to make a choice
  • They may be going through your free trial

Imagine somebody standing on the edge of a swimming pool, hesitating to jump. As if they just need a little nudge.

In the sales world, your job is to identify your nudge. Here's your armory here...

  • Tone: are we bragging or selling?
  • Strategy: demos, free trials, product marketing, social proof...
  • Format: onboarding sequence, targeted follow-ups, customer success stories, solution comparisons, FAQs, special offers...

The best BOFU tactics remove last-minute hesitations and give compelling reasons for prospects to say: "Yes, I want to buy this".

How to build a sales funnel

We now have our framework. We understand the sales funnel stages and different intent behind each. Let's go and create one sales funnel from scratch...

Phase 1: Research & investigation

This phase will allow you to identify weaknesses, realize where opportunities lie, prepare better.

Start broad...

  • Who are your direct competitors?
  • What about indirect competitors?
  • Can you spot any patterns?
  • What are people saying about your rivals?

Once the broad questions are taken care of, begin scratching beyond the surface to find out more. These questions will vary based on the industry you're in, but you will adjust easily...

  • How does their sales funnel look like?
  • What kind of assets do they use? (e.g. forms, emails, videos, images...)
  • What are the language and tone they're using?
  • Are they feature-focused or is it about social proof? Or both?
  • How do their landing pages look like?
  • What call-to-action buttons do they prefer? Where are they positioned?
  • Do they offer discounts, free trials, etc? What else?
  • How do they upsell? What's their churn?

The goal is to understand why competitor X chose a specific approach and identify the ones generating successful outcomes.

Make no mistake, you're not copying anyone. You're emulating things that are driving results. The rest comes down to whether you're capable to outwork and outperform your competitors.

Answer the WHYs and the HOWs, and make sure you document the answers in a file you can always go back to.

Tools to help with research:

  • BuildWith--> see the tool stack running on a website and understand what your competitors are using to gain advantage
  • Adbeat --> spy on your competitor's ad strategies and improve your own campaigns
  • Ahrefs --> study anyone's website performance, organic traffic, backlinks, top pages, content engagement...

Phase 2: Content for the sales funnel (including lemlist examples)

In this section, we're going to focus more on examples. We'll break down what worked for some businesses and try to get inspiration from each.

☑️ TOFU talk

For example, at lemlist, our TOFU strategy evolves around educating our audience through actionable articles and how-to guides. Articles are then distributed across our community, subscribers, personal LinkedIn profiles and company's Social Media accounts.

Social Media is probably most interesting to discuss as we distribute one same article more than once and in different forms. Memes and funny conversations have really been great for us, both in terms of engagement and traffic.

And having a laser focus on producing highly-actionable content based on work from the trenches brought us both attention and credibility.

You can also check out Tal's interviews with top players in the game! ⬇️

My favorite SEO tool goes by the name of Ahrefs. Their team managed to impress with an insanely creative tactic that generated huge buzz at an SEO conference. They decided to put metrics for the keyword "coffee" on coffee cups.

Considering this was an SEO gathering, everyone literally took a photo and shared it on Social Media. Attention hacking and brand boost in its coolest form.

🤔 Ideas for you:

  • Work in a startup? Put a professor's hat and show them how you used it in a tactic that generated awesome results. No selling, tell a story.
  • Promoting a service? Become Sherlock Holmes and identify real problems in your space. Speak authentically about them and be driven by results, not promotion.
  • Selling products? Go wild and connect your products to topics people like to talk about (e.g. shoe laces to sneakers).
  • Growing a personal brand? Become an expert by documenting all the ups and downs of your journey.
  • Use an electronic signature tool to speed up the signing process.

☝️ Mind the key takeaway:

As you see, there are many ways to do this, but the goal remains the same. Grab attention and provide value to people in an engaging way. TOFU is about stories...

☑️ MOFU talk

MOFU is the make-or-break moment. What you do next, in most cases, defines if somebody will give you their trust or not.

At lemlist, we're focused on adding people to our TSAC community. In it, we're trying to accomplish several things.

  • Provide people with increasing value
  • Deliver features they need to crush cold email outreach and sales
  • Emphasize with their position as we all experienced similar challenges at some point, learn from others and talk about different things that unite us

By listening to what they have to say, we get amazing feedback.

Of course, we also send a tone of emails (newsletters + drip campaigns) and do some retargeting occasionally. All these efforts allow us to enjoy a great inflow of qualified leads in our free trial.

Lead gen landing pages and forms are far from a novelty. As we know, it's never about the channel. It comes down to how good you are at using it.

For example, Hubspot is one that comes to mind. Their "The Ultimate List of Marketing Statistics for 2024" promises to give you incredible insights into this dynamic world of ours. But, in order to access it, you have to leave your details.

If you take a closer look, you will see their forms require more data than just a name and email. I imagine this heavily influences the quality of their leads.

You can even create quizzes and gamify specific components.

Take Gary Vee's #60SecClub. People leave a comment whenever Gary posts something on Instagram and they have a chance to win what they've asked for. Plus, it glues people to Gary's content but, more importantly, he brings unselfish value to persistent individuals.

🤔 Ideas for you:

  • Work in a startup? Give them detailed, but engaging info on how to fix a problem.
  • Promoting a service? Offer a trade. Their email for your content nugget. After that, nurture them and overwhelm them with more value.
  • Selling products? Organize giveaways and send some samples.
  • Growing a personal brand? Organize a small event in town and make it about a specific topic. Meet people, but also show them your skill by speaking about a specific strategy that worked.

☝️ Mind the key takeaway:

Remember, MOFU gives you the opportunity to produce increasing value. You already got the attention and it's time to make them love you even more.

☑️ BOFU talk

The secret weapon helping prospects feel confident in their decision to buy.

For lemlist, a typical example is our onboarding sequence when somebody signs up for the free trial. It's their first taste of lemlist and we need to be obsessed with making it an enjoyable experience.

On top of that, social proof is a big component of our BOFU strategy as well. Case studies, testimonials and word on the street play a role beyond measure.

I don't need to tell you about the importance of social proof. Companies use it in many different ways. Think both G and I are big fans of how Facebook tells its customer success stories. It's just fantastic content.

Also, whenever somebody types "your company name + reviews" query on Google, it's super important to see positive and encouraging stuff.

For me, User Generated Content also belongs here. Take Netflix or Coca-Cola as two examples.

Former used Social Media to spread the word and go viral (e.g. Bird Box, Narcos), whereas the latter absolutely dominated with “Share a Coke” campaign, where they put customers’ names on the bottle labels.

Both managed to literally privatize attention for a while and "converted" thousands of people down the line.

Guarantees, refund policies, carefully written FAQ content, kind customer support, seamless checkout experiences, upsells, product comparisons... they all have a role to play in removing doubts and making people feel confident in their purchase decision.

🤔 Ideas for you:

  • Work in a startup? Create a wonderful first experience with the product.
  • Promoting a service? Social proof in different forms. You want people talking about you, but take it one step further than typical testimonials.
  • Selling products? Offer return guarantees and make them worry less. Make sure you got a fantastic customer support that's willing to go the extra mile.
  • Growing a personal brand? Do something upfront for your target and knock them off their feet.

☝️ Mind the key takeaway:

Understand where the hesitation is coming from. Work towards removing it in any way possible.

Phase 3: Reporting and interpreting data

When you have a funnel in place, your next task is to analyze the performance and fix leaks... if they happen... and they always do.

The objective here is to chase perfection. We can never accomplish it, but it's damn sure we can relentlessly chase it. For example, here's what we analyze at lemlist.

Website --> Free Trial --> Activation/Usage --> Paid

In short, there are three main goals we measure in Google Analytics:

  • how many people signed up for a free trial?
  • how many of them are active during trial?
  • how many were we able to convert?

Later comes the big stuff... MRR, ARR, Growth, Churn...

For instance, if we get 250 free trial subscriptions this week, 80% of them are active during trial and we get 20 paid users at the end, there's evidently a problem.

Then we gotta go back and see what we did wrong. This is where data interpretation and context behind numbers matter most as they help us narrow down reasons (e.g. didn't communicate the value properly, poor onboarding experience, missing features perhaps, etc).

And this is where carefully detailed metrics for all funnel stages come into play. Let's go step by step...

Sales Funnel Software to use in 2024

Here is the list of best tools that can help you in creating a sales funnel.

  1. Clickfunnels
  2. Kartra
  3. Leadpaages
  4. GetResponse
  5. Wishpond

Our sales funnel template that generated $27M ARR

By now you already know what kind of content we use for every stage. In this last section, I'll show you how we put all the pieces together and how we track progress.

Sales Funnel Template

To have any leads, we need to grab attention. The only two ways to do that in my mind is with a great product and engaging content.

Nevertheless, we need to measure if that content is actually grabbing eyeballs. Specifically:

  • Are people coming to our website?
  • Where are they coming from?
  • What did we do good to deserve this traffic? Can we replicate it?
  • Why are we failing to rank for a specific keyword?
  • Why is traffic going down for a specific channel?
  • What are people saying about us?
  • Are they sharing our stuff on Social?

Ultimately, I'm trying to understand are we feeding our funnel well enough.

Sales Funnel ARR

When leads arrive on our website, I'm curious to see how they behave. So I go a little deeper into Google Analytics and Ahrefs.

  • How's our free trial conversion rate going?
  • What page is performing best?
  • What are the main flows to free trial subscription (e.g. do they go to the pricing page or are they converting straight from a feature page)
  • Are people consuming our content? How? Where?
  • What do they do after reading an article?
  • How's the blog conversion rate doing?
  • What did we do good? What didn't go as planned?

Phase 1 of data gathering is now completed. Based on numbers and trends, I can comprehend where to double down and how to adjust my strategy.

Free Trial

Free trial is where we need to shine. It's one thing to impress someone by talking about unique features, a whole other to make them understand the value of them.

That's what we try to do during these two weeks. Specifically:

  • Did people send a cold email campaign? How are their results?
  • Are people using most important features?
  • What vertical do prospects go to? Are we segmenting them right?
  • How are the onboarding emails performing?
  • How many people requested a demo? Show vs. no show?
  • What's our free trial conversion rate?
  • How many people during trial become TSAC members? Did we get them to connect with G on LinkedIn?
  • What features are we missing?
Free Trial - Paid

Overall, there are multiple layers of data here.

Product: how are people using it, what are they loving and is there something that's missing?

Conversions: how many users become customers after trial? Were we able to sign prospects before trial ended?

Attention: if we get them to join our community or connect with G on LinkedIn, did we manage to expose them to relevant content.

Whatever happens, the goal is to have enough information to address whatever happens after free trial.

sales funnel template

The vast majority of our users go through the free trial first. Bigger accounts and advanced outreach players move to paid immediately.

Regardless of how they converted, we then start to keep an eye on their lemlist journey. We're assessing:

  • User activity levels
  • Lifetime value
  • Needs and wants, favorite features, etc
  • Upgrades vs. downgrades
  • Voluntary vs. temporary churn + reasons

Key Takeaways

Once summed up, we have the context behind our main KPIs (MRR, ARR, Growth Rate, Churn).

We're able to, as prospects move down the funnel, add tags and segment them. This makes it easier to set up drip campaigns and run remarketing ads.

More importantly, we end up having a huge data pile we use in many ways: future sales campaigns, content ideas, identifying funnel leaks, spotting opportunities, adding and prioritizing features, hiring new people, etc.

And same applies to user segmentation.

That's precisely why you need a funnel and this obsession with metrics. We'll never be perfect, but it doesn't matter. We're not planning to quit chasing perfection.

lemlist team
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G2 Rating
Price
Best for
Standout feature
Con
4.9
star
star
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$30/mo
$75/mo
$2,999/mo
Large, distributed sales teams
AI evaluation precision, gamified KPIs
Lack of tracking system
4.6
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star
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Not publicly available
Sales operations and finance teams
Powerful configurability
Limited training resources and complex to navigate
4.4
star
star
star
star
star-half
Not publicly available
Mid-market and enterprise businesses
Comprehensive incentive management
Potentially high cost and steep learning curve
4.7
star
star
star
star
star-half
$15/user/mo
$40/user/mo
Enterprise: custom price
Complex sales structures and businesses of all sizes
Complex sales structures and businesses of all sizes
Steep learning curve
4.6
star
star
star
star
star-half
Not publicly available
Collaborative teams
Connected planning
Complexity and steep learning curve
4.6
star
star
star
star
star-half
Not publicly available
Companies with complex sales structures
Complex incentive compensation management (ICM) with high efficiency and accuracy
Complexity for smaller teams and potentially high costs
4.7
star
star
star
star
star-half
Not publicly available
Companies who want to automate commission calculations and payouts
Simplicity and ease of use
Lack of features like redirection
4.7
star
star
star
star
star-half
$30/user/mo
$35/user/mo
Custom: upon request
Businesses that need a comprehensive and user-friendly sales compensation management software
Ease of use and adoption
Lack of ability to configure the product based on user needs
4.8
star
star
star
star
star-half
Not publicly available
Companies with modern sales culture and businesses who want real-time insights
A built-in dispute management and real-time visibility
Users say it works slowly, customer support is slow
4.9
star
star
star
star
star
$30/user/mo
$50/user/mo
Smaller sales teams
Powerful automation
Lesser user base and average user interface
4.7
star
star
star
star
star-half
Not publicly available
Companies with scalable needs
Automated Commission Calculations
Lack of filtering by date, no mobile app
ERP vs. CRM
ERP
CRM
Summary
Backbone of a business's internal operations.
Backbone of customer-centric interactions and operations.
Goal
To centralize and streamline core business processes in a company.
To increase customer experience, satisfaction and loyalty, and boost sales.
Focus
Internal operations and processes across departments (finance, accounting, inventory, supply chain, HR, and sales).
All interactions with leads and customers.
Manages
Internal business data like financial data, inventory levels, production details, supply chain, HR info.
All customer data like contact info, purchase history, communication history, customer preferences and more.
Users
Finance, accounting, operations, supply chain, and HR departments.
Customer-facing teams like sales, marketing, and customer service.
Benefits
Streamlines operations, improves data accuracy, enhances decision-making, boosts collaboration, increases productivity.
Improves customer relationships, increases sales, strengthens customer service, personalizes marketing campaigns, provides insights.
Price
$150 per user per year on average.
$10 to $30 per user per month on average.
PRM Tool
Rating
Feature
Pro
Con
Mobile App
Integrations
Free Plan
Pricing
4.65
star
star
star
star
star-half
Org-wide alignment
User-friendly layout and database
Suboptimal as a personal CRM
square-check
Lack of tracking system
square-check
Team: $20/month
Business: $45/month
4.7
star
star
star
star
star-half
Social Media Integration
Easy contact data collection
No marketing/sales features
square-check
Lack of tracking system
square-xmark
7-day trial
$12/month
4.75
star
star
star
star
star-half
Block Functions
High customization capability
Not a dedicated CRM
square-check
Limited
square-check
Plus: €7.50/month
Business: €14/month
N/A
Open-source
Open-source flexibility
Requires extensive manual input
square-xmark
Limited
square-check
Self-hosted
$9/month or
$90/year
3.1
star
star
star
Simple iOS app
Ideal for non-tech-savvy users
iPhone only
square-check
iOS only
Limited
square-xmark
1-month trial
$1.49/month or
$14.99/month
3.6
star
star
star
star-half
Smart Contact Management
Feature-rich and flexible
Reported bugs
square-check
Rich
square-xmark
7-day trial
Premium: $13.99/month
Teams: $17.99/month
4.4
star
star
star
star
star-half
Customizable Interface
Customizable for teamwork
Pricey for personal use
square-check
Rich
square-xmark
Standard: $24/member
Premium: $39/member
4.7
star
star
star
star
star-half
Integrated Calling
Integrated Calling
Too sales-oriented & pricey
square-check
Rich
square-xmark
14-day trial
Startup: $59/user/month
Professional: $329/user/month
4.8
star
star
star
star
star
Business Card Scanning
Business Card Scanning
Mobile only
square-check
Limited
square-check
$9.99/month
4.45
star
star
star
star
star-half
160+ app integrations
Comprehensive integrations
No free app version
square-check
Rich
square-xmark
14-day trial
$29.90/month or
$24.90/month (billed annually)
Capterra Rating
Free Trial
Free Plan
Starting Price (excluding the free plan)
Maximum Price (for the most expensive plan)
Best for
4.5
star
star
star
star
star-half
square-check
14-day
square-check
€15/month/seat billed annually
€792/month/3 seats billed annually + €45/month for each extra seat
Versatility and free plan
4.2
star
star
star
star
square-check
30-day
square-xmark
But it offers reduced price to authorised nonprofit organisations
€25/user/month
€500/user/month billed annually (includes Einstein AI)
Best overall operational CRM
4.3
star
star
star
star
star-half
square-xmark
square-check
Limited to 3 users
Comprehensive incentive management
€52/user/month billed annually
Small-medium businesses and automation
4.5
star
star
star
star
star-half
square-check
14-day
square-xmark
€14/seat/month billed annually
€99/seat/month billed annually
Sales teams and ease of use
4.1
star
star
star
star
square-xmark
square-check
Limited 10 users
$9.99/user/month billed annually
$64.99/user/month billed annually
Free plan for very small teams up to 10
CRM goal
Increase the sales conversion rate for qualified leads from marketing automation campaigns by 10% in the next 6 months.
SMART Breakdown
1. Specific: It targets a specific area (conversion rate) for a defined segment (qualified leads from marketing automation).
2. Measurable: The desired increase (10%) is a clear metric, and the timeframe (6 months) allows for progress tracking.
3. Achievable: A 10% increase is possible based on historical data and potential improvements.
4. Relevant: Boosting sales from marketing efforts aligns with overall business objectives.
5. Time-bound: The 6-month timeframe creates urgency and a clear target date.
Actions
Step 1: Refine lead qualification criteria to ensure high-quality leads are nurtured through marketing automation.
Step 2: Personalize marketing automation campaigns based on lead demographics, interests, and behavior.
Step 3: Develop targeted landing pages with clear calls to action for qualified leads.
Step 4: Implement lead scoring to prioritize high-potential leads for sales follow-up.
Step 5: Track and analyze campaign performance to identify areas for optimization.
Outcomes
Increased sales and revenue
Improved marketing automation ROI
Marketing and sales alignment
Data-driven marketing optimization
Table
CDP Software
CRM Software
Approach
Data-centric
Customer-centric
Focus
Interactions across various channels and touchpoints, both online and offline.
Sales, marketing, and customer service interactions.
Functionality
Automatically collects, organizes, tags, and makes data available in real-time.
Helps businesses track customer interactions, sales pipelines, prospects, and service requests.
Goals
Personalized customer experiences across all channels.
Better customer relationships, streamlined processes, and improved profitability.
Benefits
Data integration, management, and accessibility, allowing for detailed analysis and segmentation.
Better communication within teams and with customers by organizing information about customer interactions and history.
Data Handling
Handles both identified and anonymous data, stitches together various data points.
Deals primarily with identified customer data.
Use Cases
Personalized marketing campaigns, targeted advertising, content customization across multiple channels.
Managing campaigns and leads, enhancing customer service, providing better customer support, increasing customer satisfaction and loyalty.
Examples
Insider, Bloomreach, Salesforce Marketing Cloud CDP
HubSpot, Salesforce Sales Cloud Lightning Professional, and Zoho CRM
CRM
Free plan
Best feature
Best for
Con
1. HubSpot CRM
square-check
Sales automation
Sales teams
Up to 1,000 contacts
2. Insightly
square-check
Custom fields
Basic needs
Not enough info about the free plan
3. Agile CRM
square-check
Deal and sales pipeline tracking
Small teams
Up to 10 users
4. Zoho CRM
square-check
Lead and contact management
Businesses of all sizes
Limited to 3 users
5. ClickUp
square-check
Unlimited tasks and unlimited members
Personal use
Up to 100MB storage
6. EngageBay
square-check
Live chat
Small and midsize enterprises
Up to 1,000 branded emails per month
7. Bitrix24
square-check
Unlimited users and 5 scrum teams
Big teams
Up to 5GB of cloud storage
8. FreshSales
square-check
Easy to use and simple setup
Beginners
Up to 3 users
9. Mailchimp
square-check
Very beginner friendly
Marketing teams
Send up to 500 branded emails per month
Type of Affiliate Marketing
Unattached
Related
Involved
Format
Paid advertising
Social media or YouTube channels
Dedicated website or blog
Focus
Quick income
Your niche
Your audience
Engagement with your audience
square-xmark
square-check
square-check
square-check
square-check
Very close connection with your audience
Pro
Little effort
Higher credibility thanks to your niche
Long-lasting and scalable
Con
Paid ads cost a lot
Potential for bias since you don’t use the thing you promote
Require time, effort, and dedication

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