Have trouble converting prospects to your business? Then it sounds like you need a sales funnel to analyze the purchasing process to identify what works and what needs improving. If you aren’t using an effective sales funnel, then we’re here to help.
This article will look at what a sales funnel is, why your business needs one, and how you can build an effective sales funnel that will boost your customer conversion rate and profits.
What Is A Sales Funnel?
A sales funnel is a term used in marketing that defines the concept used to map out the journey a customer will take before they make a purchase. It is called a sales ‘funnel’ as there are usually many customers at the start of the journey (top of the funnel), and by the end of the sales funnel process, only a small percentage will make a purchase.
There are several stages to a sales funnel that customers go through before they make a purchase. When a customer makes it to the next stage, this signifies they are more committed to going all the way and buying your products and services.
Why Your Business Needs A Sales Funnel
A sales funnel will let your business visualize every step the prospective customers take before making a purchase. You can then analyze all of these steps to make optimizations to the conversion process and increase the number of prospective customers that purchase your products and services.
You can find out when prospects leave your website. This lets you focus your attention on that stage of the sales funnel to make improvements and test it until it converts prospects into paying customers.
What Are The Basic Stages Of A Sales Funnel?
The first stage of the sales funnel is where people find out about your products or services. This could be through social media, word of mouth, or your sales funnel marketing campaign. At this stage, you need to convince people to stay on your website and engage with your business and the content being shown to them.
At this stage, the consumer has started doing their research and comparing the different options they have. During this stage, you need to focus all of your attention on swaying their opinion by using the content they are looking for.
Don’t sell them anything yet; it is too early, and it can cause consumers to look elsewhere. Use your expertise and content to help them decide your business has the best solution to their problems.
The consumer will have learned about your business, and you can help solve their pain points. They will start looking into the different pricing, products, and services you offer to help them make the decision to buy.
This is where you need to show them why you are the best choice. Make your case and highlight the reasons they should know about it. These reasons could include discount codes, free shipping, additional incentives, etc.
The consumer at this stage becomes your customer by purchasing your products and services. But they could also decide not to make a purchase and leave your website. If they make a purchase, they have become part of your business’s ecosystem, and you have succeeded in converting them into a customer.
Making the purchase isn’t the end. Now you need to switch from attracting the prospective customer to customer retention. The customer should continue making purchases from your business. Start building customer loyalty using your website’s content, after-purchase customer support, offering deals, asking them for feedback, etc.
Example Of A Sales Funnel
You need to know your target audience’s online platforms and who they are. You can find this out by researching your audience and competition. When you know this information, you can use a sales funnel effectively.
Let’s look at an example of a sales funnel that works:
- You can run an advertisement on the platforms your target audience uses. When they click on your Ad, they will be sent to your landing page.
- The landing page will ask your target audience to sign up for your emailing list, follow your social media accounts, or do anything you want them to do. Tell them why they should do this and how you can help them solve their problems.
- The audience has moved through the sales funnel. Making them leads and not just prospective customers.
- All you need to do now is send them informative content and convince them why they need what you have.
- After a few weeks, you can send them promotional offers at the end of your informative content. Offers they can’t pass up.
Let’s see how you just used a sales funnel:
You used an advertisement to funnel your target audience to your landing page. This is the start of your sales funnel.
Something of value was offered to your target audience to convert them into leads, not just prospective customers.
Informative content is given to the leads and gets them ready to make a purchase from your business.
You send them promotional offers they cannot pass up on. Then you keep sending them informative and promotional content to retain them.
How To Build An Effective Sales Funnel For Your Business
If you want to build an effective sales funnel that helps convert prospects into paying customers, you need to have a target audience you can focus your attention. These will be the prospects who will enter your sales funnel stages, move through them, and let you track their behavior and journey to optimize conversions.
Let’s look into the steps you need to follow to build a sales funnel for your business and solve the pain points that are stopping you.
1. Research And Understand Your Customers
Before you can build a sales funnel for them, you need to know who they are. Researching and finding your target audience is the first step for every successful sales funnel.
You need to talk to your customers and learn more about them. Asking them questions will help you find out what they are looking for and aren’t interested in. When communicating with your customers, you need to ask:
- What are your goals?
- What problems are you dealing with?
- How have you tried resolving these problems?
- How successful was the solution?
You can also ask them other questions, but these are the common ones that businesses ask. Use the answers they give you to create content for your website that can help them and push them into your sales funnel.
2. Build A Landing Page
Your sales funnel marketing campaigns, and content needs to lead your prospective customers to your landing page. This is where you will communicate who you are as a business and why the prospects should be interested. Without this, converting customers will become much harder.
A successful landing page doesn’t try and sell products and services. It gets people’s attention and increases their interest in the business. You need to make a great impression with your landing page and convince people to stay and learn more.
Your landing page needs a compelling call to action that instructs prospective customers on what they should do. Whether it’s watching a video, signing up for your newsletter/email list, or downloading an e-book, you need to tell prospects how to act.
3. Provide Value To Prospect Customers
Now that you have their attention, and preferably their email addresses. You need to provide prospects with engaging content and offers they are interested in. Email them regularly, but not too often. Maybe two emails a week, but this can change depending on your target audience. That’s why you need to understand who they are through research.
Don’t just tell them about products and services they should buy. You need to send them informative and educational content, show them the value you can provide, and why they should stay with your business.
4. Retaining Customers
Customer retention can be difficult, but it’s an essential part of a successful business. You cannot stop after a customer makes a purchase; you need to keep communicating with them and sending them informative and promotional content.
You need to build customer loyalty and nurture relationships between your business and paying customers. Thank them for their purchase, ask for feedback on how the experience could have been improved, and involve them in your social media strategy.
Building an effective sales funnel is necessary for a business to succeed in increasing its customer conversion rate. You need to remember that just building a sales funnel isn’t the end.
You need to track the customer’s journey, analyze the data you receive from the sales funnel, make improvements to stages that aren’t effective at converting, and create the best sales funnel for your target audience and your business.