For online business owners, a sales funnel is one of the most important marketing tools you can have in your tool belt. However, many entrepreneurs, new as well as seasoned business owners, do not understand what sales funnels are and how these sales funnels efficiently work.
Failing to understand such a vital part of your business can mean fewer sales, decreased profits, and even a less stable business.
A Simple Sales Funnel
At its simplest form, sales funnels consist of free content, which typically requires nothing from your readers. Sales funnels begin with something such as a blog or Facebook post, something simple, but valuable to your audience. This is known as the “top” of your funnel.
Next, you will have an attractive offer that requires a non-money “payment,” typically an email address. I am sure you have frequently seen these kinds of offers on the internet, and you probably even sign up for some of these offers from time to time. These are free ebooks, an infographic, video, checklist, workbook, or other valuable content that you receive in return for “opting in” to an email list providing your email address and possibly your name. Valuable content is the key here!
Once they are on your mailing list, you next offer your readers a series of low-cost offers. These could be a low-priced ebook, a trial membership, a video. You should also continue to mix high-quality content with the low-cost offers. You want to build relationships with your readers, not just sell, sell, sell.
As customers purchase your low-priced products, they move further down the sales funnel, at which time you introduce them to your higher-priced products. As they continue to purchase, they move closer to your top-end offers, located at the bottom of your sales funnel.
How a Sales Funnel Works
Take a look at your sales funnel – think of it looking like the funnel you would find in your kitchen. It should become easy to see:
- Your free content, located at the top of your funnel, is consumed by the largest number of people.
- Next is your low-cost item (that is available for the cost of their email address), and attracts a smaller amount of your audience.
- Third, your low-priced products bring in a smaller group of your ideal audience.
- Finally, when you get to the bottom of the funnel, only the most loyal of your audience and customers will purchase your highest-priced offers.
Keep Customers in the Sales Funnel to Boost Sales and Strengthen Relationships
It is important to ensure, as a business owner, that your sales funnels lead buyers logically from the top free offer, all the way to the bottom, high-priced, high-quality product or service. It only makes sense that the longer you can keep them in the funnel, the more money you can make, and the deeper relationship you can build with that customer.
Most entrepreneurs – whether they are new or seasoned – can easily visualize the top of the sales funnel; that’s easy. However, if you want your business to grow you must master the entire process from start to finish, and this starts with understanding the sales funnel – and even more importantly how it works, and its implementation.
Take a fresh look at your own sales funnel! Are you at “mystery” or “mastery” level? And will you change anything up? Funnel your thoughts to the comments below!