Social media is dramatically influencing the way we view the sales funnel. Cold calls? Collecting business cards? All old hat.

As social media transforms the relationship consumers have with the brand, the product, and each other, the game is definitely changing.

Let’s start with the bare-bones version:

The first stage is

Companies begin to attract prospects by building awareness.

Companies educate prospects by demonstrating the benefits of their product or service and piquing interest.

The second stage is

During this third stage, brands can demonstrate that what they’re selling will satisfy desired needs.

The fourth stage is "Action." Here, the customer completes the purchase or takes action.

What happens when social media is added to the mix?

Facebook: More than 500 million active users.

Twitter: More than 106 million users.

LinkedIn: More than 100 million users.

A combination of SEO and social media marketing can help clients gain visibility of your brand. With its amount of users, social networking sites offer a wealth of potential in this stage.

54% of small businesses monitor positive or negative feedback about their product on social networks.

After prospects enter the funnel, the company can build trust by providing information and help. Depending on how the brand leverages its online presence, one can see existing company-client dialogues that demonstrate solid relationships.

In fact, consumer reviews are almost 12 times more trusted than descriptions that come from manufacturers.

From user reviews on Yelp to interactive customer communities, prospects will see testimonial proof confirming the quality of the product or service they’re seeking.

After prospects transform into payingclients, it will prove that the brand has used its channels successfully.

When customers engage actively and spread the word, they can continue the brand’s sales cycle automatically. The addition of this new stage to the funnel illustrates the true power of social media.

Number of brand impressions created by word of mouth on social media sites each year: 500 billion!