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Is Your Sales Funnel Helping or Hurting Growth?

Posted May 21, 2025 by Kevin Chern

“If you’re not taking care of your customers, your competitors will.”
— Bob Hooey, Inspirational Speaker.


Setting the Stage

A few months ago, I was called in to consult for a fast-scaling software company. They had a well-oiled marketing engine, dozens of leads pouring in monthly, and a charismatic sales team. On paper, everything looked golden. Yet revenue growth had flatlined.

When we traced the numbers, the problem became glaringly clear: Their sales funnel was leaking like a sieve.

The volume was there—the conversion wasn’t. They didn’t need more leads. They needed a better funnel.

If you’re reading this and wondering why your growth feels slower than it should be despite the activity you see—your sales funnel might be working against you.

Let’s talk about how to find out—and what to do about it.


What Is a Sales Funnel—Really?

A sales funnel is the systematic journey your prospects take from first interaction to final purchase. Ideally, it’s a narrowing path, filtering and nurturing leads from broad interest to high intent.

Stages usually include:

  • Awareness: Learning about your brand or product
  • Interest: Engaging further (downloading content, following on social)
  • Consideration: Comparing you to competitors
  • Intent: Demonstrating clear buying signals
  • Purchase: Sealing the deal

At every stage, your funnel either accelerates growth—or slows it down.


Why Sales Funnels Break (And Most Do)

Here’s the harsh reality:

  • 79% of marketing leads never convert into sales.
  • 68% of B2B organizations have not identified their funnel stages clearly.
  • Only 27% of leads are ever contacted by sales.

The problem isn’t usually with the volume of leads. It’s with the system moving them forward.

Top reasons funnels hurt growth:

  • Misaligned messaging between marketing and sales
  • Lack of lead nurturing post-interest stage
  • No segmentation—treating all leads the same
  • Overcomplicated buyer journeys
  • Poor handoff between marketing and sales teams

If you’re focused on top-of-funnel traffic, but conversions still lag, this 2025 Playbook for Lead Generation offers a strategic reset.


Signs Your Sales Funnel Is Hurting Growth

Not sure if your funnel is sabotaging you? Look for these red flags:

  • High Drop-off Between Stages: Leads ghost after initial interaction.
  • Low Close Rates Despite High Interest: Leads show interest but rarely buy.
  • Marketing-Sales Finger-Pointing: “The leads are bad.” “The sales team can’t close.”
  • Overwhelming or Confusing Buyer Journey: Too many steps, unclear CTAs, friction at every turn.
  • Slow Sales Velocity: Deals linger in pipeline stages far too long.

How Top Businesses Build Growth-Driving Sales Funnels

1. Mapping the Customer Journey Backwards

Instead of building funnels from “awareness” forward, high-growth companies start from the purchase and work backwards.

  • What questions do buyers ask before purchasing?
  • Where do deals accelerate—or stall?
  • What content converts consideration into intent?

A backwards approach ensures a funnel aligned to real behavior.

2. Segmenting Buyers Early and Often

Not all prospects are created equal.

  • High-fit prospects should fast-track through the funnel.
  • Low-fit prospects should be nurtured differently—or disqualified.

Companies using data-driven segmentation see stronger conversion rates and fewer wasted efforts.

3. Shortening the Funnel Without Cutting Value

The average B2B buyer consumes 13 pieces of content before purchase. But they don’t want 13 steps.

  • Reduce friction
  • Offer self-serve tools
  • Create fast paths for ready buyers

Need examples? See how webinars can accelerate funnel velocity.

4. Aligning Sales and Marketing (For Real)

Alignment looks like:

  • Shared definitions and goals
  • Closed feedback loops
  • Joint campaign ownership

The outcome? Unified messaging and better results.

5. Using Data to Plug Funnel Leaks

You can’t fix what you can’t see.

  • Audit each stage
  • Track user signals
  • A/B test continuously

Companies doing this well don’t just grow—they scale with precision. See: Are You Relying Too Much on Paid Ads for Leads?


Real Story: From Leaky Funnel to Revenue Machine

One of our clients—a cloud services provider—had an impressive top-of-funnel engine (whitepapers, webinars) but a disastrously low conversion rate.

What we uncovered:

  • CTAs too aggressive
  • No lead scoring
  • Generic nurture emails

What we changed:

  • Intent-based funnel redesign
  • Lead scoring framework
  • Segmented nurture flows

The result:

  • 31% lift in SQL conversion
  • 22% faster sales cycles
  • 18% increase in deals in six months

The Most Overlooked Sales Funnel Mistakes

  • Too Much Focus on Top-of-Funnel: Fix conversion before adding more leads.
  • One-Size Messaging: Buyer roles vary—so should your story.
  • Ignoring Buyer Self-Education: Today’s buyers want content, not cold calls.
  • Late Personalization: Don’t wait until the pitch deck to tailor your message.
  • Forgetting Post-Sale Expansion: Your funnel should feed pipeline growth, not just first-time deals.

Tactical Tools for Funnel Optimization

  • CRM & Marketing Automation: Salesforce, HubSpot
  • Lead Scoring: Clearbit, 6sense
  • Sales Enablement: Highspot, Seismic
  • Conversion Tools: Optimizely, Unbounce
  • Revenue Intelligence: Gong.io, Chorus.ai

The Metaphor: Your Funnel Is a Garden Hose, Not a River

Picture your sales funnel as a garden hose. If it’s leaking, no matter how high the water pressure (i.e., leads), the output will be disappointing.

More pressure just makes the leaks more obvious.

The real growth comes from sealing inefficiencies—and channeling flow with purpose.


Wrapping It All Together

The fastest path to growth isn’t just more traffic or more content. It’s building a funnel that’s watertight, personalized, and relentlessly optimized.

Because in competitive markets, it’s not enough to be active. You need to be effective.

So—ask yourself:
Is your funnel accelerating growth—or quietly killing momentum?


kevin

After 30 years of building businesses while navigating some of the most complex paths to success, Kevin Chern founded Sanguine Strategic Advisors to lend his insight and experience to other serial entrepreneurs, small business owners and folks in need of a roll-up-your-sleeves innovator, deal maker and doer.

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