In B2B sales, the sales funnel is a way to visualize the buyer’s journey and/or sales process. The Bottom Of the Funnel (BOFU) is the decisive phase where prior efforts pay off in the form of conversions. In BOFU, sales and marketing efforts guide potential clients to a purchasing decision.
What is BOFU in B2B Sales?
BOFU, an acronym for "Bottom Of the Funnel," represents the final stage in the sales funnel. Here, potential clients are on the brink of a purchasing decision. They've come from the initial awareness phase at the TOFU stage and through consideration during MOFU. They're actively evaluating offers, comparing vendors, and preparing to make a purchase.
In the BOFU stage, salespeople are dealing with leads that have a high chance of converting. The lead has consumed content, engaged in discovery calls, and shown a deeper interest in a solution or product. As such, the stakes are higher. A meticulous approach here determines whether prior nurturing efforts translate into revenue.
BOFU vs. TOFU vs. MOFU
Here is how BOFU is different from the other two stages of a funnel: TOFU and MOFU.
- TOFU (Top Of the Funnel): The broadest stage, focusing on attracting potential leads and generating awareness.
- MOFU (Middle Of the Funnel): Potential clients at this stage are evaluating their options. Educational content, webinars, and case studies are used as collateral. They help the lead understand the value proposition of different offers better.
- BOFU (Bottom of the Funnel): The critical decision-making phase. Potential clients are looking to make a purchasing decision. They can be converted with sales efforts like calls, demos, and a final offer.
Should marketing or sales handle BOFU?
In the BOFU stage, marketing qualified leads (MQLs) turn into Sales Qualified Leads (SQLs). These SQLs have shown intent to purchase and require a more direct, personalized sales approach.
This means that, for the most part, sales should handle BOFU. However, BOFU collateral - like pre-recorded demos and pre-written whitepapers - can be produced as a collaborative efforts between both functions.
When should you reach out to SQLs?
Once a lead is identified as an SQL, swift and timely engagement is essential. The earlier you act, the stronger interest is going to be - and a prompt response can capitalize on that interest. To have the best chance of making a successful sale, it’s best to act ahead of the competition while interest is strong.
What’s important is understanding when a lead becomes an SQL. This means using a combination of automated lead scoring and human insight to identify strong buying interest.
Key BOFU metrics
Here are some key BOFU metrics to inform and guide your sales efforts
- Conversion Rate: The ratio of SQLs that transition into paying clients.
- Sales Cycle Length: Duration from the moment a lead enters BOFU until a deal is closed.
- Cost Per Acquisition (CPA): Financial metric indicating the cost to convert an SQL into a customer.
- Customer Lifetime Value (CLTV): Projected revenue a business expects from the entire future relationship with a customer.
- Feedback Rate: How often new clients provide feedback post-purchase, offering insights into the purchasing experience.
