How To Create A Marketing Funnel That Increase Sales And Profits
So, are you all set with your marketing funnel? Are you well acquainted with the buying behavior of your audience, have you placed your lead magnets right?
But oops! Is your funnel still not working?
You have followed all the logarithms and algorithm just like the other brands but what are they doing right, that you aren’t?
To find out what works and what not while making a funnel, continue to read the blog where The Hustler Collective will address the following issues:
– What is a Funnel? Because It is always better to start with the basics!
– Discussion about the old marketing funnel that doesn’t work anymore.
– Of course, the new one that works.
– The stages of the new marketing funnel and an example at each step to broaden your understanding.
Let’s begin —— ( I just heard drums in my head, did you?)
So, What is a Funnel?
Irrespective of the kind of business, you always want visitors to your website to take action. You might want them to make a purchase, sign up, or maybe even fill out a form. When someone avails your services or responds to your call to action, it is known as a conversion.
Hence, it can be concluded that a funnel is the set of steps a visitor needs to go through before they can reach the conversion point.
Think about the Amazon purchase funnel. There are a few steps a visitor has to go through before they can purchase a product. Here’s how it looks:
- They have to visit Amazon.com
- They have to view a product
- They have to add a product to the cart
- They have to purchase by paying for it
We know, the next question popping up in your mind that “Why is the set of steps to conversion called a funnel?” Because at the beginning of the process, there are a lot of people who take the first step. Then, as the people continue along and take the next steps, some of them drop out, and the size of the crowd thins or narrows and so does the corresponding dimension of the funnel.
Now, since you have the basic idea of a funnel, it is time to move on to marketing funnel. It has evolved incredibly over the years.
Here is how it used to be –
The Old-School Marketing Funnel
You might already be acquainted with the old-school cone-shaped marketing funnel. That version required you to continually fill the top of the funnel with as many people as possible since the bottom of funnel only filtered out a small percentage of customers.
But as the marketing strategies and tools evolved, there came a time to bid this funnel a goodbye!
With the old school cone-shaped funnel method, your marketing efforts end at the point of purchase. After a person becomes a paying customer, your job is done. You focus solely on acquisition and search for more pre-customers.
But that’s not a strategy for augmenting your business.
Instead, we at “The Hustler Collective” follow a marketing funnel that looks more like a bow tie that’s wide on the left, narrow in the middle, and wide on the right.
What is it?
The New Marketing Funnel
Your relationship with your customer shouldn’t end at the bottom of the cone-shaped marketing funnel. Instead, the second part of the journey begins after a person purchases from you. Now you have to focus on customer retention.
This is your opportunity to create a broader relationship between your company and its customer. You want to get as much feedback as possible from them.
According to the Harvard Business Review, profits rise as a customer’s relationship with a company lengthens.
In fact, more than 80 percent of people look for recommendations before purchasing a product, according to research by Business 2 Community. And Nielsen reports that 84% of people trust the recommendations of friends and family over marketing campaigns. That makes personal referrals the highest ranked source for trustworthiness when it comes to making a purchase.
Loyal fans do a lot of talking, which can drum up new business leads again and again over the years. They’re continually referring people to you. The significance of loyalty and advocacy stage is enormous and are the defining factors of the marketing funnel. We will discuss more about it in the upcoming section.
Stages of the New marketing funnel
It is the very first stage of the marketing funnel. This stage is like introducing yourself to a stranger. Your brand should make a positive first impression. The goal is to not only to show the value of your product or service but also provide educational content and build a relationship with your subscriber.
Your ad should be enticing and designed in a way that people remember it.
The way you choose to display your ads can vary. Today companies produce all manner of digital content in the form of blog posts, web content, and social media posts. Utilizing SEO techniques help ensure that your digital content ranks higher in search engine results and leads to more number of people finding you when searching via the World Wide Web. A diverse campaign can also be used to aim at your targeted demographic region which should yield a healthy volume of quality leads into your marketing funnel.
Here’s an example
To increase awareness, Annmarie created social media profiles on Pinterest, Instagram, Facebook, and Twitter. They published interesting informational posts on skin care on their blogs and promoted them on social media.
These tactics drove people to the Annmarie website.
Once a customer passes from the awareness stage he/she enters the consideration stage. In this stage as a seller you will be aware of the profile of your audience, and thus you can launch ads that directly address their specific pain points.
Tactics in this stage can include current customer success stories that prospects can relate to, email marketing campaigns, detailed product, and service offering listings, as well as retargeting campaigns for abandoned online shopping carts and web browsing sessions.
Look at this example, in this email marketing campaign Nerd Fitness includes a case study from a customer who saw terrific fitness results by completing the targets given by the Nerd Fitness Academy. The case study proved to be appropriate during the consideration stage because it related to the subscribers’ interests (fitness) and introduced subscribers to the product (Nerd Fitness Academy) while showing the value of that product.
It’s the crucial phase because now it’s the time for the audience to take the decision.
Conversion phase is where your prospect will take definitive steps to engage with your organization. Your prospects take action by responding to your offers. This can take the form of signing up for a newsletter or free trial, downloading a free resource, making a purchase of some kind, and more.
In this stage, The Hustler Collective will personally recommend you to divide your offerings and price points under various packages which gives your audience a chance to get acquainted with your services or products.
Here’s an example-
After the first two stages, Netflix asks their audience to choose one of the three plans available. Customers can choose a plan that strikes their fancy and move to the next page where they’re asked to sign up.
Once customers have signed up with their email address and name, they’re finally taken to the billing page. The billing page is clean with no distractions and a fun message that cheers your customers on and encourages them to enter their details. It has all the right elements of a high converting billing page.
This is exactly the point where the second part of your journey begins. Once you have acquired a customer, it is essential to retain them and build customer loyalty. You need to have a proper strategy for it. You can incorporate the following depending upon the industry you cater-
– Offer free webinar for explanation of advancements your product
– Take surveys from your customers
– Offer discounts for yearly subscription
Ex -To retain their customers and encourage loyalty, a designing tool company sends educational emails to teach their customers how to use their tool.
“88% of users rely on online reviewers made by other users and trust recommendations from friends and family members.” – Bright Local Consumer Review Servey 2015
The end goal of this phase is to turn your customers into fans who talk about your company and refer you to their friends. This is probably the best word of mouth publicity that you can get.
People who love your brand will introduce you to the new customers, helps in efficiently driving new revenue, business intelligence, and also helps in scaling in ways that advertising and traditional marketing alone cannot. The key is to identify your real advocates and then build programs to nurture and capture brand advocacy as it happens.
With 92% of consumers reading online reviews before making purchases, reviews like this should be welcomed with open arms.
Customer compliment service in Bob Evans restaurant on how the staff handled a complaint, made an appearance in front of the world and made a positive impact on their sales.
As shown above, addressing the pain points and using other social media channels can establish strong brand advocates who can leverage the company with additional customers.
You should now develop your marketing funnel keeping in mind the points as mentioned above. If you want an expert to do it for you, then contact The Hustler Collective which not only strategies a funnel for you but also follows up to know how is it working because we believe in retention more than acquisition.