What is a Sales Funnel?
A sales funnel is a promotional tactic created to convert potential leads into faithful shoppers by leading them along a five-phase journey. The “funnel” analogy implies that you will start with an extensive group of potential purchasers that will eventually grow thinner to a limited number of specifically targeted, incredibly valuable customers.
By segmenting the customer’s voyage into simpler phases, it is possible to be more accurate with regards to when and how you provide proposals.
As a proprietor of a small business, it is likely you will commence with just a couple of goods. For a sizable B2B business, there may be plenty of initiatives in place to promote lead generation and guide prospective clients through the sales cycle, sales pipeline, or by way of the sales personnel.
At the biggest of big picture, a sales funnel is usually divided into three parts:
- Top of the sales funnel (ToFu): Target audience
- Middle of the sales funnel (MoFu): Potential customers
- Bottom of the sales funnel (BoFu): New and existing customers
This funneling process still occurs, regardless of whether you set up intentional stages for your sales funnel. Using a template-based strategy will likely have a notable impact on the amount of customers that an expanding business over the internet is capable of getting.
It is indisputable that, regardless of the degree of complexity, sales funnels will be successful if they abide by particular general rules. Case in point:
- 87% of consumers choose to do business with vendors who provide valuable content at all stages of the buying process
- 63% of consumers need to hear a company’s value proposition(s) 3-5 times before they trust these claims
- Nurtured leads make 47% larger purchases than non-nurtured prospects
Sales Funnel Stages Explained: The 5 Stages of Filling Your Sales Pipeline
This is called the value ladder and its steps are a direct reflection of the sales funnel stages:
Pre-Stage: Know Thy Offer(s)
To start off, you should determine all of the services that you will give your customers while they progress through your sales funnel, including the introductory offer, and the add-ons.
Before beginning to explore every area, assess your complete sales funnel as a whole with your intended objectives in view.
This pre-stage step is vital to success. If you don’t provide customers with anything of value at various times, they will not be inclined to remain your customers.
Stage 1. Traffic
Pay attention to how your goal customers come into your sales channel particularly. Not all website activity is the same.
At this beginning point you should be very aware of who you draw into your funnel in order to stop being targeted by bad-quality leads.
At this point, it is necessary to maximize the efficiency of the advertisements, articles, and associate programs you are using to bring visitors to your system. Think about:
- Where your high-value prospects “hang out” on the web
- What social networks and/or content they interact with
- What free or lower-cost offers get them to take initial steps with a new brand
Stage 2. Bait
Offering a giveaway or a discounted item to the potential customer.
Some clarification here …
The act of luring in potential buyers, known as “Bait”, is part of the sales process. Applying an appealing, low-risk proposition within the series of mini funnels is necessary for encouraging customers to keep interacting.
At the lower end of the cost spectrum, temptations can be things such as gratis content, web seminars, a program provided by means of an email progression, or specimen products. At the upper levels, deals that don’t bring in a profit right away – meaning you won’t make money from the sale but will make it as customers continue through your funnel – can be used to keep the customer involved and prepared to progress.
Stage 3. Front End Offer
An opportunity to purchase at a low cost and with minimal risk, providing a valuable solution to those just beginning to experience the problem, requiring little financial input.
Once potential clients accept your bait offer, you should direct them to a landing page or a squeeze page that exhibits your advanced premium offer. Simultaneously sending email offers, which is referred to as “funnel stacking,” is something you should also do.
The risks for your company are increasing now.
The people who come across this message about selling are already in the market for what you offer, based on being lured in with the offer you put out. Consequently, they likely will be interested in what you have to offer, be it a paid service or product at this point.
Stage 4. Middle Offer
A solution that becomes increasingly beneficial and thorough, and assists customers in addressing a more complex issue – thus setting them up for success in engaging with your most expensive product or service.
Now we’re getting down to business.
At every step of the worth system, when your potential customers land at the bottom of your “mini funnel,” you need to supply an offer they can’t turn down that will let them complete a certain job and get them ready for the following level of the ladder.
Stage 5. Backend Offer
The most valuable thing you have to offer customers which is intensive and expensive, is something they can use over and over again to address an ongoing issue they face.
At this point, it is evident that the objective is to link all of your small channels together to form one large sales funnel.
The expectation is to change newly acquired customers into long-term, financially beneficial customers of your organization. Generally, the majority of your required consumers may not be prepared to interact with the most beneficial offer yet…
Until they have had experience with your cheaper goods or services.
There is no surety that clients will progress to the next level of value once they have gotten all they can from where they are. In many instances, people tend to stay with what they are familiar with rather than take a chance and try out your higher tier of service.
They may leave your company altogether after having taken advantage of all you have to provide them at a certain cost.
It is up to you to demonstrate to them that taking the next step up in your value chain will bring them an incredible amount of benefit.
If you demonstrate that your number one priority is giving your customers value even after they’ve paid you, they’ll be more likely to believe that your higher-priced offers will be worth the cost.
In order for a business to progress, it is essential to continually attract new customers, thus making lead generation a crucial portion of marketing. In order to maintain success and surpass competitors, it is essential for each company to include lead generation tactics within their marketing plan.
The vast majority of experienced marketers believe that lead generation marketing is the most essential tool for their shelves, yet only a little over four out of every ten entrepreneurs have a strategy in effect.
Whether you need advice on B2B lead generation, advice on using social media, or other lead generation strategies, these ten ideas can help you make a plan for lead generation that will bring your prospects through the entire sales cycle, and give your business a big boost.
1. PPC search advertising
Pay-per-click advertising is essential for organizations striving to boost recognition of their brands and be highly visible for special discounts and so on, as it increases the possibility of your web pages appearing near the top of searches for particular terms.
It’s a good idea to include Google Ads “extensions” with your paid search ads since they provide additional space to publicize your item or service in search engine results, each with its own individual value.
2. Use retargeting ads
These commercials encourage customers to purchase your goods or services if they have already interacted with your company before by clicking on an advertising link, surfing your website, looking at a certain product, following your Facebook page, and so on.
The process typically looks like this:
By targeting customers who have already expressed an interest in your brand, product, or service, businesses can reap higher profits by investing in retargeting as a marketing strategy.
3. Implement ABM on LinkedIn
LinkedIn leads constitute the majority of B2B marketers’ social media leads, with more than 80% coming from this platform. It is thus essential that these professionals take advantage of the possibilities offered by LinkedIn for lead generation. Many B2B corporations have decided to use LinkedIn account-based advertising as an enhancement to their digital marketing campaigns.
This approach involves creating content specifically tailored for a very specific group of people on the social media platform. Rather than casting a wide net with tried-and-true lead generation tactics that are aimed at bringing in new consumers, Account-Based Marketing is centered on creating a relationship with a selected group of buyers, people in a position of influence or those who make decisions within the specified businesses (like sales managers or marketing directors).
4. Link every offer to a dedicated post-click page
CTAs are intended to direct visitors to a page where they can obtain a special deal. Nevertheless, that page should be exclusive and tailored, serving as a post-click landing page with no other incentives or interferences.
Workato has the right idea with this ad to landing page combination:
Take note of the fact that there is only one offer presented with multiple call-to-action buttons displaying different colors and there are not any links to exit the page. A home page will be the most effective way to convince potential customers to take action, anything else would not be as effective. Sadly, many promoters do not appear to be aware, leading to dismal transformation proportions, with an average of less than 5%.
It is noteworthy that the most efficient lead generation campaigns are those that are consistent in delivering what they promise, from the content of their advertisements and their visual presentation to finally providing what was initially stated. Be sure to ensure that the same communication is presented on all levels of your promotional work and to provide a benefit to anyone who interacts with your organization.
5. Create offers for all stages of the buying cycle
Not all of the people who visit your website are prepared to buy something or talk to your sales representatives. Someone at the beginning of the buyer’s journey might only be interested in an informational resource like an ebook or a guide, while they’re still learning about your brand and exploring their options:
Somebody who is just beginning to become acquainted with your company might be ready to take advantage of a free trial or demonstration. It is essential to chart the customer journey and align content to every part of it.
The conclusion is that if you don’t have something attractive to particular visitors, they might never return to buy.
6. Gate high-value blog posts
HubSpot has discovered that firms who publish blogs 6-8 times in a month tend to double the amount of leads they generate, implying that blogging plays an important role in lead generation.
A method to incorporate blogging into a lead generation marketing strategy is to make your most beneficial posts unavailable unless they are accessed through the same system you would use to get a white paper or e-book. The content can only be acquired if the person supplies their contact details. As an alternative, you could embed links to post-click landing pages in the body of each blog post, as well as an obvious call-to-action.
7. Opt for a newsletter
Rather than having a blog that is kept up to date constantly, you can pursue a lead generation effort with newsletters which are dispatched bi-weekly or monthly; by providing useful, excellent content, this approach can be used to get potential customers to sign up.
8. Produce live and on-demand webinars
Webinars can be used as a substitute for written information in the lead generation process. You can use audio to provide useful data to potential customers and still acquire their contact information in exchange.
Webinars conducted in real-time give you the opportunity to demonstrate your knowledge in a specific field, accompany potential customers through the entire purchasing process, and talk to many people at the same time. Furthermore, you can create a discounted price or offer which is limited in time to acquire sales.
9. Go live on Facebook and Instagram
Live-streaming video has recently become extremely well-liked, also referred to as “going live”. It is especially effective when you have something extended to showcase or define, as you can render exclusive material and be directly linked with your crowd.
Consider real estate lead generation. You could broadcast online from a property to give watchers an in-depth view prior to when the listing becomes available to the public. This would not just give prospective clients an idea of the property as they look through options, but also generate enthusiasm in anticipation of its unveiling.
10. Implement time-delay pop-ups
Having quality content on your website is important, but getting interested prospects is what makes a difference to the expansion of your business. Enter time-delay pop-ups.
Once a person has been browsing your website for a pre-set period of time, a message will appear asking them to provide personal details in return for something valuable.
THE PROBLEM: YOUR BUSINESS ISN’T GROWING AS FAST AS IT SHOULD!
Your sales have stagnated or decreased, and you cannot figure out why. Discover what is holding you back from achieving predictable sales growth in your business.
If you want to grow your business, you need a proven plan and framework. That is what you get with the 2X Your Sales Discovery Session.
Want to learn about a formula for Predictable Growth that will put your business on a 90-day path to 2X Your Sales?