Ok, Let’s talk about the SALES FUNNEL process!
This is a follow up from my previous article in which I talked about the value scale.
You’ve probably heard the term sales funnel thrown around quite a lot.
Most businesses use a sales funnel within their business in one form or another even if they don’t know they are using it.
A sales funnel is just a process that you take your customer through to convert them from a free or a non-profit customer to a profitable customer.
An example of a working sales funnel might be as folllows:
You send your prospects to an opt in form. and you give them something free in order to obtain their name and email address.
You then offer them something that’s really good value but very cheap, just to get them to pay you some money to recoup some of your initial marketing cost. You might offer them an upsell that’s $7 or $10. A ‘No Brainer’ deal for the customer…
You would then try and upsell them into a higher priced package or service. For example a course that costs $97.
Lastly, you may try and sell the customer into a continuity programme. This would involve the customer paying a monthly fee to access ongoing content.
And continuity doesn’t just have to be online courses and products, you can also offer physical products, for example, if in stage three I sold someone a printer, I may offer them a continuity programme where they pay a monthly fee to be shipped ink cartridges in my sales funnel.
The idea is that the more time they spend with you and the more value they get from you, the more they are going to pay you for your services or products.
Over the long-term, you will more than make your money back for the marketing cost of acquiring the customer.
As you take them through that sales funnel, you’ll make more and more from them and have a higher lifetime customer value.
It’s really important to understand that concept of the sales funnel because if you try to offer that continuity program from stage one, chances are people aren’t going to have enough trust in you to buy into that at that point. It’s something that’s delivered over time.
Now you can actually put every stage of your sales funnel in an instant process, where after they’ve opted in, they are straightaway offered the upsell and then straightaway are offered the course etc. This would occur on ongoing web pages using a software like Clickfunnels
However, many people also collect the email address and then the upsells come via email marketing over time, because it gives that person time to build a relationship with you. It gives them time to develop some trust in you and realize that you’re not just out there to grab their money because over time, you’re providing quality content and value to them.
If you’re providing value and quality content to your customers, they are much more likely to want to buy your products when you do launch one in the future.
It’s really important to make sure that you’re providing value to your customers whatever business you’re in. Whether you’ve got a traditional brick-and-mortar business or you’re an online business, it’s really important to make sure that you are keeping up to date with what’s new on the market and providing quality information to your customers so they can build trust and a relationship with you.
People no longer want to be ‘marketed’ to, and Facebook ads are partly to blame for this, they changed the face of marketing! Now, people are so specifically targeted that advertisers speak to them directly in their marketing.
So, in a nutshell the idea of a sales funnel is that you get your new customer into the funnel by offering them something free or very low cost and over time, you sell different products to them as they gain trust and value from you.
It’s really important to know what your sales funnel is, before you start your marketing activities.
For example, in a traditional brick-and-mortar business, let’s take a gym example, you might offer a six week coaching program online for free. They might do that six weeks coaching program and then you might offer them a one-to-one personal training session actually at your gym for an upsell, for a one time price of $15. It normally would cost $60. That’s a really good deal for the customer, and because they’ve already built some trust with you over that previous six weeks, they’re going to think oh okay, yeah I’m going to go for that.
Then once you’re in there, you can say right okay, we need to work on this with you. Would you like to join our monthly membership?
You can see how the value scale would work in both a traditional brick-and-mortar business and an online business as well!
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