What is a Sales Funnel, Examples and How to Create One

The sales funnel is each step that someone has to take in order to become your customer. Let's look at a brick-and-mortar sales funnel. The ... Thiscontentisreader-supported,whichmeansifyouclickonsomeofourlinksthatwemayearnacommission. Skiptocontent Shareon: Twitter LinkedIn Facebook Eachofthesalesfunnelstageshasanimpactonconsumerbehavior.Youneedtoknowthemintimately. Byknowingeachstep,youcanusetacticstoimprovethenumberofpeoplethatgofromonesteptothenext. Thiscanhaveacrazyimpactonyourbusiness. Let’ssayyoudoublethenumberofpeopleat2stepsofyourfunnel.Youdoubleleadsandyoudoublethepercentageofclosedcustomers.Thatgivesyou4Xthenumberofnewcustomerseverymonth. Definingandmanagingyoursalesfunnelisoneofthemostpowerfulconceptsinbusiness. Let’sdivein. WhatisaSalesFunnel? Thesalesfunneliseachstepthatsomeonehastotakeinordertobecomeyourcustomer. Let’slookatabrick-and-mortarsalesfunnel. Thepeopleatthetopofthesalesfunnelwalkbyyourstore.Acertainpercentageofthemdecidetowalkin,that’sthenextnextofthefunnel.  AcustomerseesarackofT-shirtsonclearance.Heorshethumbsthroughtherack,nowthey’reatthenextstepofthefunnel.Thenthecustomerselectsfourt-shirtsandwalkstothecheck-out.They’reatthelaststep.Ifallgoeswell,theyfinishthepurchaseandreachthebottomofthefunnel. Thissameprocessplaysoutforeverybusinessinonewayortheother.Yoursalesfunnelcouldexistas: Retailstore Salesteam Website Email Personalconsultation Anymarketingchannelcanbepartofyoursalesfunnel.Andyourfunnelmightbespreadacrossseveralchannels. Whyisasalesfunnelimportant? Yoursalesfunnelillustratesthepathprospectstake. Understandingyourfunnelcanhelpsyoufindtheholesinthefunnel—theplaceswhereprospectsdropoutandneverconvert. Ifyoudon’tunderstandyoursalesfunnel,youcan’toptimizeit.We’llgointothespecificsofhowthefunnelworksbelow,butfornow,understandthatyoucaninfluencehowvisitorsmovethroughthefunnelandwhethertheyeventuallyconvert. TheSalesFunnelExplained:HowitWorks Whiletherearelotsofwordsusedtodescribedifferentsalesfunnelstages,we’regoingtogowiththefourmostcommontermstoexplainhoweachstageworksasaconsumergoesfromavisitortoaprospecttoaleadtoabuyer. AvisitorlandsonyourwebsitethroughaGooglesearchorsociallink.Heorsheisnowaprospect.Thevisitormightcheckoutafewofyourblogpostsorbrowseyourproductlistings.Atsomepoint,youofferhimorherachancetosignupforyouremaillist. Ifthevisitorfillsoutyourform,heorshebecomesalead.Youcannowmarkettothecustomeroutsideofyourwebsite,suchasviaemail,phone,ortext—orallthree. Leadstendtocomebacktoyourwebsitewhenyoucontactthemwithspecialoffers,informationaboutnewblogposts,orotherintriguingmessages.Maybeyouofferacouponcode. Thesalesfunnelnarrowsasvisitorsmovethroughit.Thisispartiallybecauseyou’llhavemoreprospectsatthetopofthefunnelthanbuyersatthebottom,butalsobecauseyourmessagingneedstobecomeincreasinglytargeted. Understandthe4SalesFunnelStages It’seasytorememberthefoursalesfunnelstagesbytheacronymAIDA:Awareness,Interest,Decision,andAction.Thesefourstagesrepresentyourprospectivecustomer’smindset. Eachstagerequiresadifferentapproachfromyou,themarketer,becauseyoudon’twanttosendthewrongmessageatthewrongtime.It’skindoflikeawaiteraskingyouwhatyouwantfordessertbeforeyou’veevenordereddrinksandappetizers. Let’slookateachstageinthesalesfunnelinmoredetail. Awareness Thisisthemomentatwhichyoufirstcatchaconsumer’sattention.Itmightbeatweet,aFacebookpostsharedbyafriend,aGooglesearch,orsomethingelseentirely. Yourprospectbecomesawareofyourbusinessandwhatyouoffer. Whenthechemistryisjustright,consumerssometimesbuyimmediately.It’saright-place,right-timescenario.Theconsumerhasalreadydoneresearchandknowsthatyou’reofferingsomethingdesirableandatareasonableprice. Moreoften,theawarenessstageismoreofacourtship.You’retryingtowootheprospectintoreturningtoyoursiteandengagingmorewithyourbusiness. Interest Whenconsumersreachtheintereststageinthesalesfunnel,they’redoingresearch,comparisonshopping,andthinkingovertheiroptions.Thisisthetimetoswoopinwithincrediblecontentthathelpsthem,butdoesn’tselltothem. Ifyou’repushingyourproductorservicefromthebeginning,you’llturnoffprospectsandchasethemaway.Thegoalhereistoestablishyourexpertise,helptheconsumermakeaninformeddecision,andoffertohelptheminanywayyoucan. Decision Thedecisionstageofthesalesfunneliswhenthecustomerisreadytobuy.Heorshemightbeconsideringtwoorthreeoptions—hopefully,includingyou. Thisisthetimetomakeyourbestoffer.Itcouldbefreeshippingwhenmostofyourcompetitioncharges,adiscountcode,orabonusproduct.Whateverthecase,makeitsoirresistiblethatyourleadcan’twaittotakeadvantageofit. Action Attheverybottomofthesalesfunnel,thecustomeracts.Heorshepurchasesyourproductorserviceandbecomespartofyourbusiness’secosystem. Justbecauseaconsumerreachesthebottomofthefunnel,however,doesn’tmeanyourworkisdone.Actionisfortheconsumerandthemarketer.Youwanttodoyourbesttoturnonepurchaseinto10,10into100,andsoon. Inotherwords,you’refocusingoncustomerretention.Expressgratitudeforthepurchase,inviteyourcustomertoreachoutwithfeedback,andmakeyourselfavailablefortechsupport,ifapplicable. AnEffectiveSalesFunnelExample Imaginethatyouownanecommercebusinessthatsellsvintagesigns.YouknowthatyourtargetaudiencehangsoutonFacebookalotandthatyourtargetcustomersaremalesandfemalesbetween25and65yearsofage. YourunafantasticFacebookAdthatdrivestraffictoalandingpage.Onthepage,youaskyourprospecttosignupforyouremaillistinexchangeforaleadmagnet.Prettysimple,right? Nowyouhaveleadsinsteadofprospects.They’removingthroughthefunnel. Overthenextfewweeks,yousendoutcontenttoeducateyoursubscribersaboutvintagesigns,tosharedesigninspiration,andtohelpconsumersfigureouthowtohangthesesigns. Attheendofyouremailblitz,youoffera10percentcouponoffeachcustomer’sentirefirstorder.Bang!You’resellingvintagesignslikecrazy.Everyonewantswhatyou’reselling. Next,youaddthosesamecustomerstoanewemaillist.Youstarttheprocessoveragain,butwithdifferentcontent.Givethemideasforgallerywalls,advisethemabouthowtocarefortheirsigns,andsuggestsignsasgifts.You’reaskingthemtocomebackformore. Thereyouhaveit: Awareness:YoucreatedaFacebookadtofunnel(punintended)peopletoyourwebsite. Interest:Youoffersomethingofvalueinexchangeforleadcapture. Decision:Yourcontentinformsyouraudienceandpreparesthemforapurchase. Action:Youofferacouponyourleadscan’tresist,thenbeginmarketingtothemagaintoboostretention. HowtoBuildaSalesFunnelFast You’restokednow,right?Youwanttocreateasalesfunnelnow—andfast.Don’tworry.It’snotasdifficultasitmightseem. Step1:AnalyzeYourAudience’sBehavior Themoreyouknowaboutyouraudience,themoreeffectiveyoursalesfunnelbecomes.You’renotmarketingtoeverybody.You’remarketingtopeoplewhoareagoodfitforwhatyousell. SignupforaCrazyEggaccountandstartcreatingSnapshots.Theseuserbehaviorreportshelpyoumonitorsiteactivityandfigureouthowpeopleengagewithyoursite. Wheredotheyclick?Whendotheyscroll?Howmuchtimedotheyspendonaparticularpage?Allofthesedatapointswillhelpyourefineyourbuyerpersonas. Step2:CaptureYourAudience’sAttention Theonlywayyoursalesfunnelworksisifyoucanlurepeopleintoit.Thismeansputtingyourcontentinfrontofyourtargetaudience. Taketheorganicrouteandposttonsofcontentacrossallofyourplatforms.Diversifywithinfographics,videos,andothertypesofcontent. Ifyou’rewillingtospendmorecash,runafewads.Theidealplacetorunthoseadsdependsonwhereyourtargetaudiencehangsout.Ifyou’resellingB2B,LinkedInadsmightbetheperfectsolution. Step3:BuildaLandingPage Youradorothercontentneedstotakeyourprospectssomewhere.Ideally,youwanttodirectthemtoalandingpagewithacan’t-missoffer. Sincethesepeoplearestilllowinthesalesfunnel,focusoncapturingleadsinsteadofpushingthesale. Alandingpageshouldsteerthevisitortowardthenextstep. Youneedaboldcalltoactionthattellsthemexactlywhattodo,whetherit’sdownloadingafreee-bookorwatchinganinstructionalvideo. Step4:CreateanEmailDripCampaign Markettoyourleadsthroughemailbyprovidingamazingcontent.Dosoregularly,butnottoofrequently.Oneortwoemailsperweekshouldsuffice. Builduptothesalebyeducatingyourmarketfirst.Whatdotheywanttolearn?Whatobstaclesandobjectionsdoyouneedtoovercometoconvincethemtobuy? Attheendofyourdripcampaign,makeanincredibleoffer.That’sthepieceofcontentthatwillinspireyourleadstoact. Step5:KeepinTouch Don’tforgetaboutyourexistingcustomers.Instead,continuereachingouttothem.Thankthemfortheirpurchases,offeradditionalcouponcodes,andinvolvetheminyoursocialmediasphere. MeasuringtheSuccessofaSalesFunnel Yoursalesfunnelmightneedtweaksasyourbusinessgrows,youlearnmoreaboutyourcustomers,andyoudiversifyyourproductsandservices.That’sokay. Agreatwaytomeasurethesuccessofyoursalesfunnelistotrackyourconversionrates. Howmanypeople,forinstance,signupforyouremaillistafterclickingthroughonaFacebookAd? Paycarefulattentiontoeachstageofthesalesfunnel: Areyourcapturingtheattentionofenoughconsumerswithyourinitialcontent? Doyourprospectstrustyouenoughtogiveyoutheircontactinformation? Haveyousecuredpurchasesfromyouremaildripcampaignandothermarketingefforts? Doexistingcustomerscomebackandbuyfromyouagain? Knowingtheanswerstothesequestionswilltellyouwhereyouneedtotweakyoursalesfunnel. WhyYouNeedtoOptimizeYourSalesFunnel Here’sthetruth:Yourprospectivecustomershavelotsofoptions.Youwantthemtochooseyourproductsorservices,butyoucan’tforceit.Instead,youhavetomarketefficiently. Withoutatight,optimizedsalesfunnel,you’rejustguessingaboutwhatyourprospectswant.Ifyou’rewrong,youlosethesale. UseCrazyEggRecordingstowatchhowpeopleengagewithyoursiteduringasession.Wheredotheyclick?Doesanythingseemtoconfusethem?Aretheyfocusingtheirattentionwhereyouwant? Thisisparticularlyimportantforthoselandingpageswetalkedabout.Ifthey’renotoptimizedforconversions,mostpeoplewilljustclickaway. HowtoOptimizeYourSalesFunnel Youcanoptimizeyoursalesfunnelinmyriadways.Themostimportantplacestoputyourfocusareontheareaswhenconsumersmovetothenextpointinthefunnel. WetalkedaboutFacebookAds.Don’trunjustonead.Run10or20.Theymightbeverysimilar,butdirectthemtodifferentbuyerpersonasanduseFacebook’stargetingfeaturestomakesurethoseadsappearinfrontofyourtargetaudience. A/Btestyourlandingpages.Ittakestime,butyou’llreachmorepeopleandconvertprospectsmorereliably. YoucanalsoA/Btestyouremailcampaigns.Changeupyourlanguage,imagery,offers,andlayoutstofigureoutwhatyouraudiencerespondsto. Thebestwaytooptimizeyoursalesfunnel,though,istopayattentiontotheresults. Startwiththetopofthefunnel.You’recreatingcontent,whetherpaidororganic,togeteyeballsonyourbrandandtoencouragepeopletoclickonyourCTA.Ifonepieceofcontentdoesn’twork,trysomethingelse. Moveontoyourlandingpage.MakesuretheofferandCTAmimicthecontentinyourblogpostorFacebookAd,orwhateverotherassetyouusedtodrivetrafficthere.Testyourheadline,bodycopy,images,andCTAtofindoutwhatworksbest. WhenyouaskpeopleintheActionstagetobuyfromyou,A/Btestyouroffer.Doesfreeshippingworkbetterthana5percentdiscount?Theselittlethingscanmakeahugedifferenceinyourrevenue. Andfinally,trackyourcustomerretentionrate.Dopeoplecomebackandbuyfromyouasecond,fifth,andtwentiethtime?Dotheyrefertheirfriends? Yourgoalistokeepyourbrandtop-of-mind.Ifyouneverdisappointyouraudience,theywon’thaveareasontolookelsewhere. Conclusion Creatingandoptimizingasalesfunneltakestime.It’shardwork.Butit’stheonlywaytosurviveinacompetitivemarketplace. Believeitornot,adetailassmallasfontchoicecanimpactconversions.Andifyouaskpeopletobuyfromyoutooquickly,you’llchasethemaway. Taketimetobuildoutasalesfunnelthatrepresentswhatyouwantandwhatyouraudiencewants.Cultivateitovertime,adjustyourapproachtovarioussalesfunnelstages,andfindoutwhyyoureffortsaren’tworking. SignupforaCrazyEggaccounttodaytostartcollectingreal,relevantdataaboutyourwebsitevisitors.There’snosubstituteforrawdata,andyoudon’twanttousesomeoneelse’saudienceandreachtobuildyoursalesfunnel.Itshouldbeuniquelyyourown. Makeyourwebsitebetter.Instantly. 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