Author Name :- Nicholas Tung
October 15, 2019
If internet marketing is your cup of tea and you have dealt with it then you have definitely met with many sales funnels, but if this is new to you, I’m sure you have come across it or even been a customer to the strategy.
Put simply, a sales funnel is a series of consecutive offers that are given to the potential customer or a customer. These offers usually tend to increase in both value and price.
A sales funnel is the collection of ideal events a lead goes through to become a prospect and then move from a prospect into a customer. That process can be made up of as little as two events: a landing page and an opt-in point – or as complex as some of the sales funnels.
The strategy is that when the customer comes across the sales funnel they engage more and more and therefore spend more funds of the products that are offered.
A sales funnel typically functions like;
Usually in the ‘front-end,’ there is a free offer or something next to free that captures people’s attention.
The catch in getting the free product on offer is to sign-up on the website and therefore give over their email address to the marketer, this ensures that they are added to a database of email addresses of prospects.
This database offers the marketer an opportunity in which they can then send other related offers on products that they might have interest in.
After signing up for the product on offer, the potential will often be presented with a very cheap offer that is used to now move customers inside the funnel. This is called an ‘up-sell’ or ‘one time offer’.
Here, the potentials are slowly but surely being moved into the ‘back-end’ of the funnel.
If the customer purchases this low-priced offer they then will be presented with another related product at a higher price.
The important thing to note is that as the price of the product on purchase increases, so should the value increase marginally in order to keep the customer hooked. In this cycle, it is important to ensure that the product’s perceived value increases and is far superior compared to the absolute amount.
4 Components of a Sales Funnel Explained
Importance of application of the sales funnel:
It is essential for any business to create more sales, therefore, enhancing profitability in the business. It is therefore absolutely crazy to not convince your customers not to buy more products from you. There is a higher chance for a customer who bought something from you to buy from you again as compared to one who hasn’t.
With more offers being presented to the customer, some customers will be filtered out and they will opt to not buy products from the sales representative. This will reduce the number of people in your database. But more importantly, the customers who remain will most definitely buy your product with every offer you present to them.
With such, you can cultivate a fertile environment with specifically targeted customers, through which you can focus your marketing efforts on. By focusing your efforts on these people, you can appeal to their needs and wants because they already have a higher chance of converting. It is extremely important to understand that sometimes, people purchase based on wants and not needs. You need to amplify the processes’ tune.
A SALES FUNNEL WILL INCREASE YOUR SALES REVENUE
Come to think of it, it’s absolutely unproductive not to present people with multiple products to purchase.
For example, you deal with machinery and you may be able to sell it for $10. If you get 500 customers for that machinery you will earn a gross of $5000.
But let’s say you introduce other machinery that will sell for $49, don’t you think some customers would be interested in that? Or even another product that goes for $490? This will help in increasing your sales revenue. Of course, a number of previous buyers won’t be interested – but a small percentage will.
The key to prolonging your customer life-cycle as a sales representative is when you are consistently selling and you are fully aware you are waiting for the individual to respond. It may take days, weeks, months or years. At times you may appear pushy so you’ll need to be able to deliver and plant value along the footpath.
Some high ticket closers show and throw all value onto the table, but this is extremely dangerous as your value proposition may run out quickly before you age. A professional closer will be able to fully understand the duration before an execution, “It is like in a BGR”.
With the use of a sales funnel, a marketer can estimate the number of customers that he is expecting to engage in a period of time. This number can then predict the retained Number of customers.
For my philosophy, it is very simple. A simple technique is what can be read and taught in books. A difficult technique needs to be learnt through experience and banging down of walls.
For online prediction: Let’s say Jim has an average of 10,000 visitors on his website, out of these visitors, an estimated 40% will grab the free product or newsletter. Out of these 4000 subscribers maybe 2-5 % will purchase your product. This is a way of estimating your sales. With this data, Jim can then estimate based on the number of customers in each phase of the funnel, how much sales he can expect to make in a period of time.
For offline prediction: It works exactly the same, the only difference is that the numbers have to be pre-backed and supported by the marketing team to pre-tabulate out and it needs to be fed through an automated sales generation system to determine the %.