When running a business, often times we may be faced with various unknowns. That's why as marketers, business owners, and entrepreneurs, it’s in our best interest to create systems in place in order to generate consistent results.
Online sales funnels are a perfect example of that.
While most people think that online marketing funnels is just a bunch of hype, it's actually very real and can make a big impact in creating a successful business.
Imagine being able to automatically attract leads or sales 24/7 without any additional work on your part after setting it up. Sounds impossible?
Well, these days, savvy marketers and entrepreneurs uses online sales funnels to grow their businesses by generate leads and sales even while they sleep. So today, we’re going to show you why online sales funnels aren’t just hocus pocus. In fact, they’re actually one of the best tool in running an online business.
In this article, I’ll show you:
What is an online sales funnel, how to build one, and what you require for each step of your funnel.
What is a Sales Funnel?
A sales funnel is a marketing concept that highlights the checkpoints at which your customers will interact with you before they are ready to make a purchase. Think of the sales funnel as literally what it is, a funnel. You start with a large number of potential customers at the top and the goal is to guide them to the end at the bottom where you get a sale or lead. There are multiple steps to a sales funnel, usually called as the top, middle, and bottom of the funnel, depending on the business model.
The four basic Sales Funnel stages are:
As your prospects pass through each step of the funnel, they are more likely to engage your service or purchase a product from your business. Through a sales funnel, businesses are able to filter out ready-to-buy prospects from the 'just looking' visitors. Helping them create more compelling ads and offers.
Implementing a top-notch sales funnel helps businesses pave the way to a successful sales strategy.
That said, the primary goal with an online sales funnel is to effectively move people from one stage to another until they are ready to purchase. By knowing each step, you can use tactics to improve the number of people that go from one step to the next.
Sales funnels also allows entrepreneurs to scale the business based on accurate data and analytics.
"Let’s say you're getting an average of 10 'Add To Carts' for every 100 website visitors but only 2 converts into customers. That’s about a 2% conversion rate. With this data and knowledge, you may want to focus your efforts to increase the number of interested prospects that actually converts into customer, thus improving conversion rates. Sales funnels gives you more control of your business marketing spend vs. ROI (Return Of Investment).”
One of the most powerful concepts in business is defining and managing your sales funnel so your business can scale infinitely.
Need For A Sales Funnel
If you are a business owner, you might be finding ways to scale up your business. After putting out content, ads, offers and so much more, customers are dropping out of your website without purchasing anything.
It happens. But with a sales funnel, you are able to work around that and optimize your business with a future goal. A sales funnel helps you understand your potential customers and what they are thinking, doing, and looking for at each stage of their journey. With these insights, you can invest in the right marketing activities and channels to create the most relevant and engaging messaging during each stage and turn more prospects into paying customers.
Proper sales funnels are essential in growing a business because it gives you valuable customer information and insights.
Understanding the Sales Funnel Stages
Customers passes through different stages of your sales funnel from the first time they hear about you up until the moment they buy something from you. This journey might differ from one prospect to the next depending on your buying personas, your niche, and the types of products or services you sell.
Before you start building your sales funnel, it is for you to have a clear brand vision, develop an digital marketing strategy, and then define your target customers to work towards your business growth.
If, for example, you are looking at how to create an online clothing store, you need to follow specific steps to develop your business to stay successful. You can add as many stages within your sales funnel as you want. In general, there are four stages of a sales funnel.
Understanding your funnel can help you find the flaws in your business — somewhere along the customer journey where prospects drop out and never convert.
If you don’t understand your sales funnel, you can’t optimize it. We’ll go into the specifics of how the funnel works below.
Sales Funnel Explained: How It Works
On average, it takes 7 impressions before a prospect actually turns into customers. But with a well-designed sales funnel, it may take even less than that.