Sales funnel development and management is one of the most powerful marketing engagement tools in your small business. Email marketing is your follow-up system in your company. Any type of sales funnel is an email marketing tactic and can influence buyer behavior. Marketing takes place in stages. It’s the customer-buyer journey and the execution of the sales funnel that drive the action. Once you bring a prospect to your landing page or website and sign up for your offer or lead magnet, your sales funnel takes over building the relationship. By knowing each step of the buyer journey, you can employ tactics to increase the number of people who go from one step to the next. For example, let’s say you double the number of people on the second step of your funnel. If you double your leads, you could potentially double the percentage of sales you made. This will give you four times the number of new leads each month, which should have a significant impact on your monthly sales. This is part 1 of a two-part series on sales funnels.
Marketers like to make sales funnels sound complicated, but they don’t have to. The secret to a great email sequence is being as helpful online as it is in person. The best email reads like you’re talking to a friend.
Before I dive into sales funnels, I need to take a moment to define the customer-buyer journey, or sales path, that you want to get the customer to take notice of your offers. Every customer-buyer journey consists of five phases: brand awareness, consideration, purchase, retention and advocacy.
The brand awareness phase is all the way you tell people about your company brand, content and offerings (website, social media, content marketing, paid ads, speeches, media interviews, etc.)
The exam phase is when your lead is considering your brand among other offers. (Content marketing, value comparison tables, product demos, sales talks, etc.)
The buying phase is when a sale is made.
The retention phase is when the relationship begins. What is your new customer process like? Do you check in with them days later to make sure they’re happy? (Unboxing experience, onboarding, exclusive content / access, customer support, training opportunities, special discounts, etc.) Just add more value to your customers so you can keep them as customers.
The advocacy phase is when you turn a customer into an avid fan. (If they really love you, they’ll tell people.) The referral business is the best kind of business and it closes faster.
The main difference between the customer journey and sales funnels is that sales funnels are used to convert visitors into leads and leads into customers, while the customer journey represents the entire sales path.
Historically, people have been taught that the sales funnel is a downward process that thins leads on the way down and ends in a purchase, but I reject that notion. The modern sales funnel has more of a fly shape. The reason for this is that when you buy, the relationship deepens. The retention phase is just as important as the purchase phase. The goal of any business should be repeat business. Small business owners need to focus as much or more on existing customers than they do on new leads, since a new lead has a 5-20% chance of buying what an existing customer will buy again, but a 60-70% chance of buying it again critical to the long-term success of any business.
Why are sales funnels important?
The first time a visitor sees your listing, they likely won’t buy. It usually takes 5 to 30 ranges to grab a target customer’s attention. Sales funnels are often referred to as email maintenance sequences or drip campaigns, which are automated to give your leads, prospects, and customers ongoing communication. Your goal is to build a solid foundation with them and gain their trust so that they will be receptive to your offer. E-mail sequences can be scheduled so that your e-mail arrives when it is most likely to have an impact. The key to success in email marketing is segmenting your list. You will find that sixth graders don’t want to be addressed as if they were 1st gradeNS School classes and adults are the same way. Get as much information as possible about your leads so you can send them the relevant content and marketing messages. The sooner you start using sales funnels and email automation to interact with your email list, the sooner you will benefit from one of your strongest assets.
You cannot develop an effective sales funnel without a value ladder or all of your sales offers.
Regardless of whether you are in a B2B or B2C industry, few companies would not benefit from a value creation ladder. The implementation of a value ladder increases sales potential and earnings. Value ladders usually start with something small and easy to sell – like a free offer or a lead magnet to build some initial trust and interest in your brand, then start your steps with paid offers. See diagram.
What are the elements of a value ladder?
First, clarify your target customer, lead magnet, tripwire, core offer and premium offer. A value ladder consists of a number of products, the price of which ranges from your lowest to your highest premium solution. The lowest offer can increase the size of your email list. Additionally, it can prove your customers to your leads and increase awareness of your brand. Your goal will be to get customers to climb every step of your value ladder in order to maximize their spending potential. The Best Value Ladders have no endpoints. Instead, they wrap up with high quality repeat expense options like recurring subscriptions, VIP retreats, and high-end coaching packages. When a value ladder is well designed and executed, a Company can maximize the lifetime value of its customers.
How to create your value ladder:
1.) Start by delving deep into your target customer. Who are you? What inspires you What are your biggest fears? How do you spend your free time? Learn as much as you can about your target audience, beyond basic demographic information. Then define your user Customer personalities. Is a customer personality a semi-fictional archetype that represents the key characteristics of the target segment of your audience based on the data you’ve gathered from customer research and your web analytics. You need to be able to see your customer’s face.
2.) To develop Lead magnet. Build your email list with your lead magnet or irresistible free offer.
3.) Then you need a Tripwire. This is a simple, dirt cheap offer that typically costs $ 7 to $ 47. Typically, your offer should be worth at least twice the price you are asking. With this offer you want to show how well you serve your customers.
4.) Next you need your. define Core offer. ($ 97- $ 497)
5.) The final step is determining yours Premium offer. ($ 1997 +)
By the way, sevens roll off the tongue better than round numbers. You want to psychologically appeal to the customer that your offer below $ 500 is $ 497.
Now that you understand the customer-buyer journey and how to build a value ladder, you can dive right into the sales funnels you need to grow sales. In the second part, we’re going to talk about the 9 sales funnels that every small business owner needs.
Join my FREE Sales funnel webinar on October 6 at 2 p.m. ET to learn more about Sales Funnels.