If you are running a business, regardless of its size, you should be aware of the essence of marketing. No matter how good your business idea or products are, they will be of no use if you do not get customers to buy them.
How you market your business is what matters. Some business owners do it well while others don’t get good returns despite staging expensive campaigns. In most cases, it is not about how much you spend, but how you do it. One of the best marketing techniques that you should consider using is a sales funnel. This article highlights key facts about this method and how it can help your business move to another level.
So, what is a Sales Funnel?
A sales funnel is a well-designed marketing system that gives a linear representation of the steps that customers take when interacting with your business. It provides a step by step view right from the moment a customer becomes aware of your business to when they become a repeat client. Just as the name suggests, this marketing strategy deploys the working mechanism of a normal funnel. When you announce the products that you are selling, a lot of people might become interested in buying them. However, only a small fraction of this number will make the final purchase.
Stages of a Sales Funnel
Sales funnels have three categories of audiences, which include a cold, warm, and hot audience. It takes the cold audience (prospective customers that have little information about your business) through different stages which are;
Here a prospect gets some vital knowledge about your solution. The audience at this stage is aware of a problem that needs to be solved.
The audience develops some interest in the solution that you are providing. A part of them may opt-in to subscribe to your emails or follow you on social media.
The prospect aims at using your solution to solve their problem. They may even start exploring different packages of your product.
At this stage, the prospect will make a final deal such as purchasing the product or entering into a contract with you.
For the warm audience (those that are aware of your solution and have even used it) and the hot audience (those that have purchased your products and are usually avid buyers of your products/services), these stages are bypassed. Instead, the funnel focuses on retaining them, nurturing them, maintaining their loyalty by providing value, and putting offers in front of them that may benefit them. In return this will benefit your business in the long run.
The Benefits of Sales Funnel to a Business
Sales funnels are made up of several stages which ensure that at the end of it all, you will be able to identify those customers that are valuable to you. Businesses that have used this strategy have made great strides. Here are some of the key benefits that you stand to gain when you use a sales funnel for your business.
Attracting new leads
Are you launching an entry-level product? Would you like to attract new customers into your business? If your answers to these questions are yes, then a sales funnel is what you need to achieve your goals. Keep in mind that in most cases, the market is saturated with similar products and making a breakthrough can be quite a daunting task. Setting up a robust sales funnel and equipping it with the right content can make things easier for you. Even those prospective customers that have never heard about your product will become interested and proceed to make purchases.
Sales funnels have proven their effectiveness to start-ups, especially the ones that are introducing a new concept into the market. Existing businesses use this method when presenting a product or trying to acquire new customers.
Automatically manages the existing leads
Sometimes, running a business can leave you mentally wounded. You may spend many hours wondering whether the current leads will leave or will continue being your clients. A well thought out sales funnel process can spare you from such an emotional wreck, as it’s a very attractive process. The system is rich in vital and relevant information and can independently nurture all the leads without requiring your input. It achieves this by sending messages, which will in turn convince your clients to stay. It also makes prospective leads feel they are in the right place. Yours is to concentrate on making sales.
Boosts sales revenue
Sales funnels are capable of increasing your revenue, by being able to offer your customers different product options at different levels to satisfy their needs. By meeting the needs of the customer you are ultimately meeting your need to make sales. This marketing tool can track these sales conversions and turn any visitor to your business in a prospective customer. Regardless of the varying offers at different price ranges, at the finish line a sale has been made and you have increased your revenue. And of course, an increase in sales revenue will boost the overall performance of your business.
Helps you to predict your future sales
With a sales funnel, you will no longer be walking in the darkness. Instead, you will be able to foresee the future performance of your sales. This is possible because the system collects and stores data about your current sales. By doing a simple analysis of the information that you have obtained, you will be able to make accurate predictions on sales and overall business performance. Let me also add ‘a good sales funnel should be able to tell you how it’s performing, breaking down stats for you, and let you know what parts of your sales funnel needs fixing and what parts need pushing as you may be making a killing in that certain area, rather than others’
Making it streamlined
A sales funnel has capability of having a fully automated service. However, observing your funnel is highly recommended as you can and should be going into your funnel to tweak parts that may not be showing the best results. You should also be split testing parts of your funnel such as ‘headlines, copy, video vs no video, images, etc…’ this will help you gauge what is working vs what is not, and other possible avenues as to where you can increase revenue and turnover. It requires a lot less effort and/or human supervision than your traditional website. The main benefits that your company will reap from setting up a good sales funnel process is it helps with streamlining, scaling, customer acquisition, reduction of labour costs, the digital process of collecting and analysing data at every step in your sales funnel from leads and customers helps increase levels of accuracy, and many more…
Improves customer relationship
A sales funnel ensures that there is a smooth flow of communication between your business and the customers. Your clients can get all the information they need, while you can collect their complaints and feedback from them at the same time. Such a flawless communication method will make them feel valuable, and they will yearn to be part of your business and hungry to purchase any upsells. As they will see the upsells as a valuable means for their business.
A sales funnel gives companies real-time data on how their sales campaigns are performing. You will be able to see products that are selling well and those that are underperforming. With this information, you can make relevant changes regarding the performance of your business.
It is now obvious that a sales funnel is vital and should be a viable option for you and your business. Simply as it can help you achieve your business goals, streamline, and scale your business and processes a lot faster. You can use it to generate more leads which will translate to a higher turnover and revenue for your business. Now, one tool that I have found easy in setting up my sales funnels for my businesses is ClickFunnels. ClickFunnels marketing sales funnel is one of the best marketing tools that you can use to automate your marketing campaign easier. It can save you a ton of money in the process by eliminating designers that you pay thousands to. You can be an absolute novice and it comes with free training. Today my mentor Russell Brunson is giving away his FREE book that will detail the process in depth of setting up a sales funnel and if you want to learn more and you think ClickFunnels may be an option for your business – guess what? It’s one of the upsells.