Why We Love Sales Funnel (And You Should, Too!)
I was talking to Jayden, a friend of mine who is an Internet Marketer. During our discussion Jayden started to talk about “Sales Funnel”.
The main point he said was whether your business is brick and mortar or online business, the backbone of your business is your Sales Funnel.
And he was 100 percent correct.!
What is a sales funnel?
Sales Funnel is nothing but “the buying process that a business use to lead customers through to purchase their products”
And every business, with or without their knowledge, has a “Sales Funnel” in place.
How visitors move through the sales funnel?
We will take the case of an online business. Lets start by picturing the shape of a funnel
- At the top of the funnel are people searching for your product. Let say there are 1000 people.
- As they move into the funnel you may have 80% of the people that make it to your website : or 800 people.
- Now they keep moving into the funnel and you have 60% of people who see your “Call To Action” : 480 people.
- But only half of those people clicks the “Call To Action” button that leads to the landing page : 240 people.
- And half of them fill out your registration form : that is 120 people.
- And 50% of those people will become regular reader of your email follow up messages: 60 people.
- And finally 5% will actually become “Buying Customer”: 12 customers.
How to encourage people to register?
If you look at the above sales funnel, you will notice that it is from “Clicking the Call To Action” stage the real action begins. From here people get subscribed to your list.
For people to subscribe to your list, you need to offer them something in return. A free giveaway is usually offered, so that interested people will fill out the form to collect the giveaway.
Your give away has to be a quality item that the visitors can use. For example, a free report, eBook or video that provides information on something they want to learn about. Always make sure that the giveaway relates to the niche you are promoting.
Once your visitor finds value in your give away they are more likely to fill out the form and give you their email address.
After they subscribe usually they will leave. It will be unlikely they will make a purchase at this time. They will be more eager to go through the give away they just received.
Even if they leave without purchasing anything, you now have their email address. You can use it to contact them regularly and build a lasting trust and relationship between you and your subscribers.
What makes your sales funnel an essential tool for your business ?
In most cases, the goal of your business is to make money. Lets see how different stages of a sales funnel can help you to reach that goal in a structured manner?
See visual representation of the stages of a sales funnel.
People come to your website by organic search or by your paid advertising.
Your sales funnel start from here.
When someone visit your business and leave, there is only very little chance for them to come back unless of course you ask them to visit again.
To do this, you collect the visitors contact details at this stage.
This is the next step in the sales funnel.
With the emails you collected in the previous step, you start to communicate with your prospects and begin to build the trust between you and your subscribers.
If your communication does not contain value, you risk losing these potential customers. On the other hand, if the prospect see value in your communication they will be more likely to trust you. Once you build the trust the rest will become easier.
To help you with regular communication you can use an autoresponder service.
More on autoresponders at the end of this article.
Once you develop the trust and relationship you will be able to promote your product or service. By now, your prospects trust you and they will be more likely to seriously look at what you offer.
I will be honest with you here. I hate the word “sell”.
Instead I prefer to use “serve”
When you choose to serve your customers instead of selling, you are creating elated customers.
And as a result, your productivity too will increase.
At this stage you customers see value in your product and they trust you too. Now they have every reason to buy from you rather than from someone else.
While these are the major stages in a sales funnel you definitely need to customise these stages to suit your product and customers.
For example, you can think of adding an up sell or cross sell at the “Sales Level”
Say you are selling Laptops with one year warranty, you can offer extended warranty to cover for 3 years (Up Sell) by making an additional payment. Or you can offer a special rate for a laptop stand with a cooling fan to use the laptop while lying in the bed (Cross Sell).
Can you now see how you can fine tune the sales funnel to suit your requirements.
The sales funnel works well with any business. It guides your visitors through various channels until they make up their mind and become a buying customer.
A word about Autoresponder
An autoresponder plays a major role in the sales funnel. This is what is handling one of the most important part of the sales funnel that is the communications.
An autoresponder is usually an online service which allows you to automatically send out emails to a group, or to several different groups, of people at predefined intervals.
Autoresponders are incredibly powerful and you should be careful which one you choose.
If you are looking for an autoresponder there are many out there. But our recommendation is GetResponse, the one that we use ourself since we started three years back.
We choose GetResponse after careful studies and comparisons. The major reason to choose GetResponse is because from the basic plan itself they provide a Landing Pages, Email Marketing, Webinars and Marketing Automation.
Most other autoresponders does not offer all of these as an “all in one bundle”
Please see the video below for more information