4 Stages of a Sales Funnel and its Impact on Business GrowthJune 26, 2019
Sales funnels are used by businesses worldwide, no matter the type or size of their business. To substantially grow your business, you will need a sales funnel whether it is just for lead generation purposes or to put your core offer in front of your customers. Sales funnels are used to filter out customers, who are a great fit for your business now and are able to pay for the core offer. Also, sales funnels quickly find customers who are just looking around right now for the business that fits their needs and keeps your business on top of their mind.
In this blog we are looking at exactly what a sales funnel is, what each stage of one is, how other businesses use them and the tools available to creating a flawless sales funnel.
What is a Sales Funnel?
The fundamental concept of a sales funnel is the process from which you attract a customer to your business and take them through a journey where they end up buying your high-ticket offer.
What is the journey through a Sales Funnel?
There are 4 basic stages to a sales funnel
- Profit Maximiser
- High Ticket Offer
Awareness stage is consisting of all your marketing activities, so that people are aware of your company and what it is you do for your customers. Marketing activities at this stage are very accessible for customers to get hold of and may include:
- Television Advertising
- Radio Advertising
- Social Media Advertising
- Google Advertising
The purpose of the profit maximizer is to break even from your marketing costs. Best practice is to offer your customer a low-cost product that is aligned with your high-ticket offer. Only a low-cost product is offered at this stage, as the customer (even showing an interest in you) does not have the trust in you to invest in a high-ticket product. At this stage only think about how you are going to start breaking even and pay for your marketing costs.
When offering a low-cost product free of cost, you do so in exchange for an email address. This email address is worth its weight in gold. As soon as you collect one email address, start writing a regular email to them on a monthly, weekly or even daily basis keeping them informed of industry news, behind the scenes of your company and promotions.
This stage of the sales funnel is; where you truly start to make your sales funnel profitable. Your offer is a product that is aligned with your low-cost offer and your high-ticket offer. Create an offer that is enticing for your customer but makes them want to take up your high-ticket offer.
High Ticket Offer
By now your customer is a fan of yours and is the perfect time to place your high ticket offer in front of them. If you are a coach and offering a full package, you would not just email to them the product offer and expect a sale. Instead you would create a webinar series, where they could learn about the coaching package and how it could transform their lives.
Down sells, Upsells and Cross Sells
Throughout the customer’s journey in your sales funnel, there will be times when a customer is not interested in buying or not interested in buying from the next stage of the funnel. This is OK, as there are ways in which you can stop customers from falling out of the funnel and remain a loyal fan.
Down sells are used when a customer looks at your offer, but then says no. In response to this, you show them an alternative offer that costs less but is aligned with the original offer. Down sells are ways for you to not lose the customer, when they are showing interest in your offer, using a lower cost alternative.
Upsells are used when a customer buys your low-cost product or offers in the third stage of the funnel and are then shown a higher priced product to buy. McDonalds always upsells when you buy from them. For example, you go in to buy one of their burgers and you are then asked do you want fries with that? Next you are asked, if you want a drink with your burger and fries. Before you know it, you are told that if you just spend a few pence more, you can get the full meal where you get extra drink, fries or meat of your burger.
Cross sells are used when a customer buys a product and then you show them an offer of the price range and compliments the product bought. Amazon is amazing at cross sells, have you ever noticed when you put an item in your basket and you are then automatically shown similar products. Amazon also sends emails promoting similar products to the one that you have bought.
Tools to Use In Creating Sales Funnels
There are a variety of tools that you can use in creating a sales funnel. For creating email; marketing campaigns and landing pages you have Mail chimp, Get Response, Active Campaign, Click funnels and Lead Pages. These tools usually can integrate with advertising campaigns such as Facebook, Instagram and Google Analytics. There are tools that you can use in tracking your customers whole journey which are CRM tools. Popular CRM tools include Zoho, HubSpot, Click funnels and Infusion Soft.
As you have read; sales funnels have 4 main stages that enable businesses to grow and filter out customers, who are a fit for their business and how to keep customers with email marketing. All you need to do now is look at you core offer and decide how you are going to attract the right customers and offer them products aligned with your core offer.