What is a Sales funnel? how does it work? How is it structured? Does it work, and if so, what are the numbers supporting it? How beneficial are sales funnel for our business? These and many more are questions that entrepreneurs and small business owners ask when we talk about creating a sales funnel as part of their marketing strategy.
So, we’ll just go ahead and explain in some detail what a sales funnel is and how to create an effective sales funnel for your business.
What is a Sales Funnel?
A funnel is a digital marketing strategy that maps the process every prospective follow from the moment they come in contact with a brand to the moment they decided to buy from that brand and then become ambassadors of that, its a journey
The process behind creating a sales funnel is, we have a product and we want to create awareness in the marketplace. Once someone is aware of it, we want to generate interest for that product in that prospective customer. Once we have that prospective customer’s interests, we want them to make a decision and then take action based on that decision. Once they take action, we then see the benefits of the sales funnel process.
During Odigital Digital Marketing course, we we will teach you how to conceptualize and build sales funnels that would convert every visitor into paying customers and from customers to brand ambassadors, click here to register for our 100% practical Digital Marketing training course
How’s a Sales Funnel Structured?
- The Landing Page: The principal thing you want to do with a landing page is to get email addresses. What you want to do is to make a promise that if prospective customers give you their email address, you’ll give them a valuable piece of information that they’ll like, this is called a Lead Magnet. People will trade their email address because they know that you’re going to contact them in the future.
- The Thank You Page: Once you’ve gotten email addresses, then you want to take them to a thank you page that might have an offer on it. In a nutshell, you’re saying, thank you very much, here’s what we promised, but could you take a look at this thing or product that might improve your life or solve your problem?
- The Order Page: The order page is the next step in the funnel, and this is the page where they go to purchase what you’re offering. What you also want to do with your order page is to give them the product they want, but then ask if they want to bump on another product that goes along with the one they’re buying. This is called an order bump, and it’s been proven- through split testing- that 20 to 30% of people will take the order bump if offered.
- The Upsell Page: Once customers complete an order, you want to take them to an upsell page for an additional product that would help them out with the product they just purchased. 30 to 35% of people take an Upsell. Once they’ve taken it, you can take them to a thank you page.
- The Downsell Page: Let’s say someone didn’t take the upsell. Instead of letting them go, you can take them to a down-sell page. They might be ready to buy, but don’t want to spend that much money. You can make them the same offer but at a steeper discount. 15 to 20% of people will take a down-sell if you just make them the offer.
Now, we know that 95% of the traffic that comes to our landing pages don’t make a decision the first time they see our product. So, what do we do with that number of people that don’t buy our product when they first see it?
This is where the emails you’ve collected from your landing page comes in handy. You can put them into an email smart list and send them emails for the next two to three days in an automated system.
You should make them that offer to come back and buy the product because they may not have been ready to buy initially, but giving them additional information over the next couple of days might persuade them to buy your product.
What if they don’t buy the product? Well, you can make them a different offer and send them a series of other emails related to the product they didn’t buy or about something completely different. Because you have them in your email list, you now can send them offers whenever you want.
And if you always provide value with your emails, they won’t opt out of your list but would stay on your list forever. You can send out different offers with an automated system so that you can provide value to these people. From all we’ve outlined so far, it’s quite evident that your landing page is key to your sales funnel and your business, so we want to take a look at the structure of a great landing page.
What makes a great landing page?
The Hook: The hook is something that gets people’s attention.
The Story: You want to tell them a story and explain why your product is going to be good for the problem they came to your website.
The Offer: Finally, proceed to make them your offer.
In reality, all of the business boils down to three simple processes.
- Learn how to get people’s attention.
- Tell them a story that builds belief, emotion and trust.
- Sell them something they want, something irresistible to them.
Let’s look at some numbers behind a typical sales funnel. Let’s say 200 people put their email address into your landing page and 5% of those people decided to buy right away.
If your product costs $30, that means you’ve made $300 from those that bought immediately. Let’s say one out of those 10 people that bought your initial product is in a really good buying mood and takes your upsell of a more expensive product that costs $100. This means that you’ve made $400.
Even if you spent NGN10000 on advertising to get people to your landing page, you’re already in profit of NGN25000. Besides, you’ve now collected 200 email addresses that you can now market to for free. That’s how incredible the sales funnel processes can be, and that’s why we use them.
There are several platforms you can use to create stunning sales funnels and there are stages in every funnel, in another article, we will discuss the types of funnels, the stages of sales funnels and funnel building best practices.
clickfunnels is one of the top platforms that help you build and automate a sales funnel, there are a lot of other platforms where you can build funnels and help your customers on their journey to buy from you.
if you want to learn more about how to build funnels and how sales funnels can help grow your business exponentially then you should attend Odigital Digital marketing Course to learn everything you need to know about funnels and how they work.