One of the Digital Marketing core concepts is Sales Funnel. The sales funnel always existing in your business, whether you know it or not.
In recent years, with rapid changes in economics and user behavior. Companies, businesses are racing to improve and optimize the customer experience in the online environment, which is attached to maximize the value per customer.
That’s why the Sales Funnel, Customer Journey, Marketing Automation increasingly interested and thorough research in the business strategy online.
What Is Sales Funnel?
A sales funnel is a process that includes many stages. Each stage has one goal to help you convert your potential customers to buyers and increase cart value through up-sell or down-sell. So, you can increase revenue, enough budget for ads cost, and give you the ability to pay more than your competitors to acquire customers.
A sales funnel is one of the main concepts of digital marketing. It can be confusing and hard to understand.
But once you know it well and optimize it, your business will be successful within a short period of time. It is helpful for unknown businesses and can make it become multi-million-dollar marketing machines.
Not to mention, you can build a career relating to this concept in business if you master it.
Why Sales Funnel Important?
Back many years ago, when the cost of advertising on Facebook and Google were low. For Example:
- Product Price: $38
- Ads cost: $10/Buyer
=> Profit = $38 – $10 = $28.
Thus, with $0.38/click. If 100 people click and have one buyer, you are breaking even.
And what you need to do is optimize the conversion rate on the sales page:
- CTA, …
Whatever you can do, for every 100 people visit the site, there will be one buyer.
Currently, the game has changed. Advertising costs are getting more and more expensive. With Google Ads, you may have to pay a few dollars or more for a click.
This makes beginners, small companies, or people with a low budget unprofitable and bankrupt. Watch the video below to see Russell Brunson (CEO of Clickfunnels) explained.
If you are a fan of Shark Tank, you will find that sharks always ask these two questions:
- What is your CPA? (How much does it cost to acquire a customer)
- What is your ACV? (How much is an average customer worth)
The funnel can help you fix this issue. Like you go into Mcdonalds after you buy a hamburger. The staff will ask you: Would you like to have fries with that? Would you like to use a combo? Would you like to change to a large size?
I didn’t know the concept of a sales funnels before; I used to call it Upsell.
As soon as customers buy, you will introduce other products, and the profits will mainly come from these products. Returning to the problem above, if I add an upsell product for $ 97. Then you can spend at least $38 or more than that to get a customer.
It’s the same the quote:
“Whoever can spend the most money to acquire customer wins.”
That’s how you grow your company, beat your competitors, sell more products, get your ads more seen out there… That’s how like all the things that you want in business, all come off of that concept.
Understand Sales Funnel Stages
There are so many sales funnel concept and stages you can find on the internet. After all, they have 2 core sales funnel explanation
- Traditional sales funnel based on the AIDA model (AIDA sales funnel)
- Online sales funnel
AIDA Sales Funnel
AIDA sales funnel has 4 stages:
- Awareness: Let people know your business exists and have a solution that can help them solve problems
- Interest: Connect with your audience; make them more interested in your products or services.
- Desire: Prospect starting to find more detail about your company, products, or services. They compare you with others and consider to buy or not.
- Action: They take action what you want, such as subscribe to your email list, buy your product, trial program you invited, etc.
AIDA sales funnel available in every business, whether it is online or offline. It is difficult to see it clearly in offline marketing activities.
On the contrary, it is prevalent and easy to recognize in the online environment. Then I called it is Online Sales Funnel.
Online Sales Funnel
The online sales funnel developed based on the AIDA sales funnel. It is visible as landing page connect together and is usually in stages, as an image below.
A sales funnel is similar to the best salesperson and haveing guide your potential customer through entire sales process until they reach your desired destination.
There are so many online sales funnel types. But the process in a funnel are the same.
We take someone to a page that only has one goal: Get their name, email, and contact information.From there, we take those people who became leads in the sales process for selling products or services.
After they purchased, we will drive them to the One time offer (OTO page) then Upsell /downsell page to give customers more value also help you increase revenue online.
And the goal of Sales funnel learning center is focus on help you understand how to build an online sales funnel.
Effective Sales Funnel Examples
1. Ecommerce Funnel
The spread shirt is a website that sells T-shirts. I like this website because I can design & customize my shirts and create designs to sell them in their marketplace. Let’s see how they increase the card value.
First is the sale page. Here, customers can pick the color of the shirt and customize the design if they want.
Because customers already like this, they will probably buy another product with the same design. Also, if you are a couple, you can buy one more for your friend by clicking on the Men / Women button.
See, with a simple tactic, there is an opportunity to sell more and promote other products. 90% of e-commerce sites use this method, so let do it now if you haven’t applied to your business.
2. Book Funnel (Or Free & Shipping Funnel)
Million Dollar Ads book created by Peng Joon. Inside the book, he going to revealing to you the different framework for writing his best performing ads, and thought process behind each and every one of them so that you can model, swipe, and implement them immediately.
Before we go deep into, let me mapping the Million Dollar Ads funnel first to help you understand.
Free & Shipping funnel starts by promoting the low-price product but high-value. This funnel has 2 advantages:
- Free products can attract many potential customers.
- Customers still have to pay for shipping.
Many people will complain that $ 14.95 for shipping costs are quite high and not reasonable. Why not give away free 100%? Here is the reason:
- You still need the money to pay for advertising, printing, and shipping. Therefore, in this case, the high rate is that you will lose money or break even (if you are lucky.)
- We have a list of buying customers (high-quality leads)
Next, to recoup costs, after customers fill in the information, a special offer will appear for $37. Some people will buy it, and it will help you offset the advertising costs.
Besides, this is also why they can spend more than $20 to acquire a customer (pay more than competitors.)
The book gives you the best Facebook ads content formula and example. However, that is not enough for you to make money. Here, they will introduce you to the course “Million Dollar Ads Masterclass” for $297.
Because customers have already bought from you once, chances are they will buy more.
Now, Peng Joon starts to has profitable. Remember, the profit from the sales funnel doesn’t come from books but from upsell and the product you promote later.
After you know how to create an effective campaign, you already know how to marketing on Facebook, and you will encounter a new problem – SCALE.
When you start to make a profit, you are feeling excited. However, when you start to scale ads, you losing money. You try:
- Changing out image
- Duplicating Ad set
- Chatbot follow-ups
- New Audience
- Changing campaign Objectives
- And more
and it’s still doesn’t work.
Right now, Peng Joon introduces you to the “Facebook Ads Secrets” course that will help you scale easier and more effectively. This course’s price is $ 347 – another opportunity to introduce other products and get more profits.
Finally, the thank you page. In this case, they will give you a link to create an account for login to the membership and receive the bonus.
Inside the membership area, you will see two things:
- Bonus they promised
- Promote the upsell products again to increase conversion rates, get more profits, and increase customer value.
Free & shipping funnel is one of the popular sales funnel that many marketers and companies used to grow their business online. (Russell Brunson, Dean Graziosi, Tony Robbins, Grant Cardone, Fiber Fix, etc.)
3. Webinar Funnel
Webinar Funnel is often used to promote products valued at $ 400- $ 1997. Here is an example.
The website creates by Kathryn Jones; she is an expert in creating high-converting funnels and web pages without code, photoshop, or design skills required.
Before we go deep into her funnel, let me show you the map first.
Steps in the funnel:
- Register Page: The registration page clearly explains your benefits when joining the webinar.
- One-Time-Offer Page (OTO): They were introducing a special offer for $37. This page helps them offset the cost of ads.
- Live Video: Teach what she promised and introduce specials offers.
- Special Offer Page: She recaps what you will get and promote special offers. Also, the page has multiple payment options instead of a one-time payment – $997. It helps them increase conversion rates and suitable for more people.
Cfdesign doesn’t list as many benefits as other sites. They only focus on 3 core elements. These are the problems and false beliefs that many people have and solutions.
- Your website is ugly.
- Spend more budget to design your website/funnel
- How to use a “design facelift” to explode your sales, even if you suck at selling
The next page is the OTO page promoting “Design Hacker Tool Box” for $ 37. Some customers will buy this product here.
It helps Kathryn offset advertising costs to get people to attend the webinar, filter out high-quality leads list, and increase competitive advantage.
If there is the first time creating the webinar funnel, you should do a live webinar. In this case, you can see Kathryn using the video uploaded and play on Youtube. I think she goes live training many videos before, which is the best video with high conversion rates.
After you do some live training, pick the best video, and set it automatically on your sales funnel – Auto Webinar Funnel.
The content of the live training will teach what promised on the register page, and it is a step by step to introduce and direct people to the product. It was a special offer, high value, and priced at $ 997.
At the end of the video, she will provide a link to the sales page.
To help increase conversion rates better, she came up with 3 option payment plans to help people easy to buy. Most people have a hard deciding whether to buy a product for $ 997. Have multiple payment options:
- 3 payments of $ 397
- and 7 payments of $ 197
Will make it much easier for customers to make decisions. Of course, most people would expect their customers to pay one time for $ 997. However consider:
- 3 payments of $ 397 = 3 * 397 = $ 1197
- 7 payments of $ 197 = 7 * 197 = $ 1397
Not bad, right! Webinar Funnel is the best way to promote products from $400 – $1997, so if your business has similar product or service let’s try it.