Sales funnels explained (and the reasons why you need them for your biz)

Here is a guest post from Teis Nilsson, a growth consultant over in Sweden and he is delivering so much great stuff in this one post - take a few moments to read it and soak it up!

- Jackie

Would you like more customers?

Would it be exciting if you could get them to buy more?

How about seeing a better pay-off on the money spent on advertisements?

If you answered yes to any of the questions above, this post explains how a funnel might help you improve on all these 3 areas, as well as improve the way you effectively communicate with your customers.

A good funnel accomplishes this by leading your customers awareness, from realizing you exist to the desired outcome, be it getting an email to building an e-mail list, or a customer who buys a product.

For that purpose let’s take look at the AIDA model for creating an effective funnel.

What is a funnel?
It's simply a term or an image used to visualize the effect of pulling individuals from a broad platform, into your bottle neck, like your e-mail, or your website if you will.

So let's dive in.

Have you ever walked into your local store for an everyday item like a bottle of water, or a package of mints? Only to realize that you came out with a bit more than you initially planned for!

I have!

A few years ago me and my wife went to Gatwick on a business trip.

We went into Crawley town on one of our days off. It was warm and sunny day, so we knew that we'd need refreshments for the day.

We saw this store called Poundland and we’d never been to England so we wanted to see what it was.

Our initial plan was to buy bottled water and a snack for our trip around town, but as we walked around in the store we were captivated by the different departments of the store, and the buyer's journey we were taken on.

We bought a bit more than we initially thought we needed (okay, a lot more).

When this happens, it's because of the journey, or the experience you get as you walk through the store.

Initially that's what a funnel is supposed to accomplish.

To get your audience through an experience of realizing what they need and making you the place they'd go to get it.

So how does a place like Poundland achieve the extra little things in our basket?

They have what is called a store mirror. This includes measuring how a certain setup of the aisles, how putting the products in the middle shelf or the top shelves and how adding different signs to showcase especially significant products, affects the customers.

So they organize it in a way that will help their buyers find what they need and what they may need additionally.

That's similar to what a funnel is doing online or offline.

It builds a way through your online presence which is designed to engage your audience, the first step is to raise an awareness around your brand.

A small note to set the expectations!

Approximately 3% are in the immediate need of your product.

craft my success

Which means if you bring a 100 viewers from an ad, only 3 out of them are actually ready to buy your products now.

Another 7% are going to need it in the near future and are likely to be researching for the right vendor, quality and possibly price.

I say possibly because a sale rarely happens based on price. More often than not, it happens based on emotion.

The above 10% will be in your market space, but as a good marketer you should attempt to structure your campaigns to hit yet another part of the viewers you are able to reach.

The 30% who don't know they need your product.

Because they are often extremely happy to see the value you are able to offer them.

Then we have the last 60% of which 30% think they're not interested and the last 30% are definitely not interested.

They might be, but then they have a brother or an aunt who does what you do, and let's face it, we won't be able to sell to them.

We're trying to reach the first 40% who is already in need of what we provide

The AIDA model
Awareness

Running an ad to capture attention.

There are two basic methods of marketing: Mass marketing which is what Coca Cola does when they appear on every single bus in the world to get into the minds of their customers, and
direct response marketing which is done by leading your customers through a couple of structured sequences on your website where a response is triggered based on their previous choices. For instance, if your customer buys a Walkman they also get the offer for some batteries to power it with.

Interest

Establish a connection with your audience, that gets them interested in finding more information.

Desire

This is where you display value to get your customers to go from liking your products, to wanting them.

Action

If you never "call to action" your customers will not buy, but if you start off by telling people some sleazy sales pitch, when you should establish the interest to find out more, most people will find you smart (and not in the good way!) and salesy which means it’s pure luck if you do manage to sell anything!

On the other hand if you are able to move them to a mindset where they feel like they aren’t being sold something, they are more likely to be buying. It means you make them feel good about their choice, and that is the start of a loyal customer relationship.

Why would you want to implement a funnel?

Because a funnel puts your efforts to generate customers into a strategy.

That’s essentially what direct response marketing is supposed to be.

An efficient way to establish enough trust to get a direct response, while they are still in the buying phase.

Direct response marketing is the way to cost efficient, use data to continue what your customers are shown based on what caught their attention, to target your marketing presence specifically to them.  

A funnel will help you decide how different types of content applies to your goal, like if they just heard of you; you don’t want to start of with hey buy this! Because then they will immediately leave your store.

Another benefit of a funnel is that it will help you lead your clients from zero knowledge, to knowing enough about you to comfortably taking your advice in an environment, where you have their undivided attention. This gives you the ability to lead their attention strategically towards them making a purchase.

Teis Nilsson
My name is Teis Nilsson and I’m a Growth Consultant with a burning passion for helping entrepreneurs reach their audience and build their businesses exponentially.
If you liked this article on funnels and would like to learn more about sales and what sort of content will work for different stages of your funnel head on over to bizzblueprint.com and subscribe to our insider tips on growing your business!