If you’re interested in growing your business and have been looking for a solution for any amount of time, you’ve most likely heard somebody mention funnels.
If you aren’t using lead generation and sales funnels in your marketing – you’re throwing out a lot of time, energy and resources in your marketing efforts that most likely isn’t giving your much of a return on your investment… am I right?
What is a Funnel?
Funnel: A funnel (aka marketing funnel, lead generation funnel, sales funnel, etc.) is nothing more than a graphical representation of the customer life-cycle as a customer travels from prospect to lead to customer in your business.
What Does a Funnel Look Like?
Funnels can be laid out vertically like a traditional funnel with prospects entering at the top and customers coming out the bottom or they can be laid out horizontally with prospect entering the funnel on the left and customers popping out on the right.
Whichever option you prefer… both will allow you to track your customer’s path.
Why Is This Important?
The reason funnels are so important is for one reason and one reason alone…
ALL GOOD MARKETING IS DATA DRIVEN!
Gut feelings are great for choosing who to date or what lunch special you’d like to try today but for marketing… we want to make marketing decisions on actual, real-life data.
Let me give you an example:
Life Without A Marketing Funnel:
Statistically speaking – only 2-3% of people who visit your website will ever buy from you. If you run a retail location that mean that for every 100 people who walk in your front door – more than 97% of them will continue to walk out without breaking out their wallet.
I don’t know about you but for me… that is totally unacceptable. I’m going to market and advertise to get 100 people into my store and only two will buy? HORRIBLE.
The problem is.. without a funnel in place where we are gauging the customers interest along the way, we have no way of knowing why the 97% of the people won’t buy.
Maybe they’re just tire kickers.
Maybe they didn’t like my prices.
Maybe they didn’t like the re-heated fish I had for lunch
Nobody really knows for sure so any changes we make to our marketing strategy are going to be guesses based on gut feelings and nothing more.
That is NOT the way we want to run a professional business.
Now let’s take a look at life with a “general” marketing funnel and see what we can learn.
Life With A Marketing Funnel
Let’s say you run a local pool supply company and you are trying to kick off some killer summer sales with a large display in the front of the store for over sized, inflatable rubber ducks (don’t ask me how I know about this)
Seems like a pretty good plan because as a pool supply company (or any other company as far as that goes) the hardest part is landing the new customer – once you have them you can always up-sell and cross-sell them with additional/related products and services and just clickfunnel discount generally win them over with your spectacular customer service.
So let’s take a look at what that funnel might look like
NEW CUSTOMER SALES FUNNEL EXAMPLE:
Step 1: Customer walks into the store (thanks to the 4′ tall rubber duck in your front window)
Step 2: Customer looks at the rubber duck display
Step 3: Customer grabs their own rubber duck and puts it in their shopping cart
Step 4: Customer heads over to the checkout line
Step 5: Customer completes the purchase and goes home to inflate their ridiculously over sized rubber duck.
To understand the magic of the sales funnel we aren’t going to look at the actual steps, we’re going to look at the gaps between the steps because this is where the customer is making their decisions. This is where they are deciding if they are going to continue the relationship.