If you run your own business, you know that making sales is challenging. Having a regular stream of revenue from consistent sales is even harder. Successful companies have this all figured out. The key to making sales consistent is a sales funnel.
What is a Sales Funnel?
One of the most common questions that we receive from our clients is, “What’s the most effective marketing technique to get more customers?”. Rather than looking at one technique, you have to look at how your marketing and sales efforts work together to generate leads that turn into paying customers. Having a sales funnel can help you achieve this.
A sales funnel is a step by step process that allows you to take a potential customer closer to your offer by guiding them through a set of marketing techniques. Some people stay at the top of the sales funnel, others will drop out in the middle, and some will reach the very end – hello sale!
Even if you don’t realise it, sales funnels are everywhere. Take, for example, a brick and mortar business:
Business: Jeans Shop
- You see a store that sells jeans. The display is beautiful, and the whole vibe of the shop is lovely with perfect lighting and some fun music in the background. Intrigued, you go inside.
- A smiling sales associate then welcomes you and offers assistance.
- They mention that they are running a promotion for today only – 30% off a pair of jeans.
- You choose a pair, and the sales associate says that if you get another pair, you get a free T-shirt. Now you have two pairs in your hands and a free T-shirt.
- The sales associate leads you to the check-out counter where the cashier asks you for your details and gives you a “$10 OFF” card for your next purchase.
- You’re so pleased with the deal you got that you come back two weeks later to purchase another pair because you know you get $10 off.
The above process did not happen by chance. It’s a planned and devised sales strategy.
Strategies like online are called digital sales funnel. Think of it as a virtual salesperson that works 24×7, 365 days a year.
Why is a Sales Funnel Important?
Businesses are becoming more competitive.
A well-planned sales funnel is the backbone of every successful business. Brands are becoming more competitive online, and each one is vying to be the most attractive to potential customers.
Customers are sophisticated.
Customers want value for their money. They have all the information right at their fingertips, and they take full advantage of it. They do their research and seek options online. Closing a sale is not simple, and it’s not instant. It involves a lot of marketing, courting and sweeping potential customers off their feet.
4 Stages of Digital Sales Funnel
Attract
This is the moment when you catch a prospective customer’s attention. Your marketing and advertising techniques bring them to your website. Your prospect becomes aware of what your business has to offer. You can use email marketing, paid ads, content marketing, video, and many more marketing techniques to attract your customers.
Interest
At this stage, the customer is doing research, comparing prices, thinking over options, and luckily, you’re still in the running. On your end, this is when you establish your expertise and credibility. It is time to swoop in with your engaging content, but be careful not to be too pushy (at least not at this stage) as they may get turned off.
Convert
Here, the customer is ready to buy and considering you and a couple of other options. Time to make your best offer! Choose something that sets you apart from the rest, something that gives you the edge. It can be shipping charges, free returns, a bonus product or a discount. Present them with an offer they can’t resist.
Action
At the very bottom of the funnel, the customer clicks on BUY NOW. They purchase your product or service. Now’s not the time to sit back and relax; you still have work to do! You want to turn one purchase into 10, 20, 100, and a lifetime customer.
Your focus from here is on retention and converting the customer to become an active promoter. Thank the customer and show them how easy it is to get in touch with you. Provide your socials, email address and other contact information. Give them a referral deal so they can invite their friends to try your product – think Uber and Air BnB.
Understanding each stage of the sales funnel can help you optimise the entire process. You can make new action steps or tweaks to your current techniques to influence and steer your potential customer in the direction you want them to go.
Having a sales funnel is the only way to survive the fierce competition. Take time to build it. Review data and use different approaches to see what works best for your business.
If you need help in setting up an effective sales funnel, we’d be happy to help. GET IN TOUCH WITH US.
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