New Customer Acquisition & Generating New Leads
What is a Funnel?
The majority of surveyed people told us that they achieve only very seldomly leads or actual sales– despite the fact that their website looks really good. What entrepreneurs need is what we call a “Sales Funnel”.
The Funnel: Your Tool for Automated Success
Funnel has the literal meaning of the word and describes the process of making people interested in you, and to then transform these people more and more into fans until they trust you enough to buy your product. Obviously, you won’t convince every single one of your fans to actually purchase something, which explains the reason why this process is being compared to and looks like a funnel.
Sales-Funnel is a cleverly automated marketing tool, which will help you get interested people to follow you and to turn them into customers.
Funnels are – besides your perfect Facebook fan page, your website or your blog – an essential element of content marketing to turn potentially interested readers into buying customers.
Recently, 30,000 customers were surveyed, and the results were very interesting…
Those, who had one traditional website and only sold one product, achieved 540% less than those using a Sales-Funnel.
How is this possible?
- The sales increased by 140% as soon as a simple “order form bump” was added.
- An additional increase of 130% in revenue was recorded when an Upsell was added…
- When a down-sell was added, the income increased by an additional 133%…
- If all three things were added, revenue increased by overall 540%!
Yes, this literally means that for every $100, which are earned the traditional way via a normal website, the Sales-Funnel will increase the revenue to $640 – and that fully automatically.
What is the problem?
Websites weren’t invented to sell products. Websites were developed to introduce a company and the idea was to present it like for example a brochure would. So, if a sales person in your company hands out limitless brochures or flyers to potential customers in the hope that they will maybe buy something, you would be mad, or not? Well, this is exactly what is happening with your company. You might as well burn the money you are spending on marketing and advertisement. After all, this is pretty much what is happening when you send website visitors to your company website. So, if you want to sell a product or a service to make money, you will need to implement a Sales-Funnel.
This Funnel is literally the secret of the most successful online businesses. A Funnel is a series of steps, which potential clients will go through, and which will turn them into paying customers.
Funnels happen every day around you, even though you may not have noticed it.
How does a Funnel work?
Although every Funnel is individually different, most function according to the same principle:
Did you know that McDonalds pays $1.91 to get a client to use their Drive-Through? So, if they sell you a Burger for $2.09, they only make a profit of $0.18. However, if they also sell you a drink and fries, they are making an additional $1.77, which increases the profit to $1.32. This is 8x more than the original profit from the first sale. That’s quite impressive, or not? This is happening constantly around us, and yet, most entrepreneurs will create their website still like a brochure and try to sell their products or services this way. More often than not, they won’t be able to afford the hosting costs, once they spent all their money on marketing and advertising.
If you want to sell products or services online, then you need much more than just a traditional website, and you will have to implement – much like McDonalds does – a Funnel. Instead of a McDonalds Drive-Through, your visitors will come in via a landing page, where you can collect their contact information, which enables you to contact them via their email addresses in the future. Whilst they are visiting your website, you will then be able to sell them other products and services – which is called upsell. This is pretty much how a Funnel works.
Interested people are attracted to content, which offers solutions to problems or answers on questions they may have. This content can be offered in various formats, like for example on a Facebook page, as blog entry or in Podcasts. The choice of the format should depend on the preferences of the target group: For example, if they are predominantly travel in the car for work, then they would have the time to listen to Podcasts during their travels.
To be able to send your readers personalized messages, additional content is offered together with the initial download – in exchange for their email address. Since you attract leads this way, the term used for these contents is lead-magnets. These often come in the form of e-books, manuals, checklists or case studies.
Therefore, the start of a Sales Funnel is to “warm up” the interested people. The terms “cold traffic/lead” or “hot traffic/lead” are often mentioned in this context. A cold lead would be someone, who does not know you yet, and who consequently would be relatively skeptical towards you. These people are obviously harder to convince. In the marketing world, experts often say that up to 7 contacts are needed, which explains the reason why it is so important to literally funnel as many interested people into your Sales-Funnel. Contact opportunities can happen on several different platforms or just one platform, which makes an email sequence a very effective tool, since it enables multiple direct recordings of these leads. A warm/hot lead has already had contact with you and is much easier to convince. People will predominantly buy from people they like. Keyword: Added Value.
The more quality you offer your readers, the faster they will turn into fans. People will only buy your book or product, if they have the feeling that they get a high-quality product for their money.
Once the reader is entered into your email-distribution, they will be able to receive your particular content via email. For this, automated email-series / email-sequence are being used. This way you can build up confidence and trust with your new contacts, where the reader expects helpful, suspenseful and useful information in every email. After a while, you will be able to offer your readers your offers for purchase. This will enable you also to gauge their real interest, and whether it is only in cost-free content or if these people are actually interested in becoming potential clients. You will lose a lot of people during this part of the process, if they are not interested in spending any money on your product. This is an important part of the Sales-Funnel, because it separates those, who basically just clog the space for free stuff, from those, who are truly relevant contacts.
There are some very good email marketing tools available, which can help you to create such an automated Sales Cycle (like for example Clickfunnels, which works very simply and without a designer or programmer). Here, you will also be able to download the highest converting landing pages and Funnel, which I use myself for my own leads. It works great! (You may try it yourself with their 14-day Trial free of charge.)
Let Me Show You How Easy It Is To Set Up Sales And Marketing Funnels Inside ClickFunnels
If you are wondering how you can generate traffic: This is very easily done via Facebook advertising. Read more about it in the next post.