What is a sales funnel and why is it important to your success?
The sales funnel explained
The sales funnel is a “sieve” that leads prospective clients through your sales process. It casts its net wide and then gradually weeds out unqualified prospects that are unlikely to buy your advice, services or products. As the term ‘funnel’ suggests, it is wide at the beginning (the entry point) and narrow towards the end (the point of purchase). Prospects typically begin their journey through the sales funnel in response to marketing activity that entices them in. You then use marketing techniques to offer them other special offers and opportunities. This gives you a chance to gather information about your prospects and qualify them further.
Why businesses use sales funnels
Sales funnels are important for a number of reasons. Firstly, they make the sales process more efficient. And since only qualified buyers get to the end of the funnel, you don’t waste time dealing with uninterested prospects who are just kicking tyres.
A good sales funnel helps to make your sales process more predictable. Sales are never fully predictable but when your sales process is organised in a standard, systemised way, you can arrive at a good estimate of your return on investment. Finally, a sales funnel helps you to track different metrics at different points of the process. It’s organised into clear steps so that when a problem arises within your funnel, you can troubleshoot and tweak accordingly.
An example sales funnel
Consider the following example of a sales funnel in action. You create a blog post about ‘Smart investing’ for (your target market) and ensure that next to the article is a webform where visitors can sign up and receive a free eBook on the topic. You promote this to your existing clients and any prospective clients that you have on your database. You also promote this on Google Adwords or through Facebook Ads.
Once a visitor to your website downloads the eBook, you begin marketing to them through emails, offering exclusive content, helpful tips and special offers. You also offer an initial ‘discovery’ meeting.
At first, visitors read your blog for information about ‘Smart investing’. At that early stage many may just be considering the feasibility of starting to invest. Others however, may really be motivated and are looking for the right solution.
Many who do sign up for your eBook and join your list are truly interested; and the ones that jump on to the email offers are seriously looking for a way to start an investment program.
The people in this segment of your list are the most likely to take up your offer to meet and explore how you can help them – and so begins your ongoing education and marketing to them. Of course, if you have their phone number or ask for it in the sign up form, you can and should call them soon after they receive the eBook.
Focus on qualified prospects
An important concept to remember about the sales funnel is that you don’t need to appeal to everyone. You only need to focus on those who are truly interested in your service. Losing subscribers isn’t necessarily a bad thing as you don’t waste your time on those who will never become your client. That’s the magic of the sales funnel in action.
The team at Capstone can help you to take your business to the next level. To find out how contact:
Kym Turner
Head of Coaching & Development
Capstone Financial Planning
P: 03 8622 0719
E: k.turner@capstonefp.com.au
