Why Sales funnel? (How works sales funnel)
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A sales funnel is a tool that can provide you with an indication of how well your sales system is operating at any given time.
Imagine a funnel, wide at the top and narrow at the bottom. You put your new leads into the top of the funnel, and they are progressively passed through the various parts of your sales procedure until the sale is closed and payment is received at the bottom. Out of the bottom pops the completed sales. Alternatively, the bottom result could be customers who are completely attuned to your niche and ready to purchase your highest priced products.
Naturally, since it is a funnel, a lot more goes into the top than comes out of the bottom. Between the two are procedures of quotations, information, free samples, low priced sales, etc., that make up the total process of converting an initial lead or enquiry into a completed high value sale. Obviously the number of closed sales is less than the number of leads, and the number that goes into the top gets less and less as they pass down the funnel.
This can be used as a sales tool to determine the effectiveness of each part of the process. Each part of the funnel should be clearly defined with criteria that can provide certain information about each lead at that stage. At each level, leads should become progressively more qualified, and the level of qualification at each stage should be known.
A Sales Funnel Report can be run to compare the actual situation at each stage with your sales budget or plan. The funnel can indicate if any specific level is acting as a bottleneck and needs more effort directed to it, or if resource can be taken from one level and deployed at another. It can indicate whether or not a sales budget can be met, or if more leads have to be added to the top of the funnel. It can also indicate at what point leads drop out of the system, and what action is required to maintain a steady flow.
In order to build a sales funnel, you need prospects to pour into the top. Your objective is to end up at the bottom of the funnel with people who have been qualified at various stages in your funnel to become responsive buyers of your products. The first stage is to get email address by means of a squeeze page. Everybody who fills in the opt-in form becomes a prospect and falls into the funnel. As they receive and read your newsletters, they continue to filter slowly down your funnel, and then you offer them a product.
It need not be an expensive product: a $20 book will be enough to start with, and everybody who buys it establishes themselves as a customer and falls further down the funnel. Many will not make the purchase and your funnel will become narrower, but you can calculate at each stage how much narrower it becomes. As you offer more expensive products, your funnel will become narrower and narrower, till at the end you have customers who are very responsive to your offers, and it is them from whom you will make the bulk of your money.
Your funnel begins at the front end, which is where all of your marketing tools are. Whether you use SEO, pay per click advertising, Web2 promotion, ezine advertising and any of a large number of lead creating techniques, your objective at the front end is to get an opt-in, which is basically a volunteer jumping into your funnel.
At the front end you are look for people to give you permission to contact them. Once in the funnel, you start the process of qualifying and disqualifying leads. Disqualification is an important part of a sale funnel You must spend the bulk of your time on qualified leads, who are interested in your products, not those who have little interest. Your front end is about capturing leads, and keeping those that show interest in what you have to offer.
You don't make money at the front end, just fill your funnel. The back end is where the money is made. Your back end customers have filtered down the funnel, opting for free offers, and paying initially for inexpensive items, then other higher priced products. At the back end, they are exposed to the highest priced products such as audio and video products, seminars, mentoring or even highly priced ebooks.
Your sales funnel allows you to analyze every step of the process and decide where your efforts are best expended at any one time. Internet marketers that use sales funnels have a more focused route to follow, and are on top of their business day after day, and fully aware of the potential of their lists and how to maximize them. That is why you need a sales funnel to maximize your business potential.
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Channel: Howto & Style
Uploaded: November 30, 1999 at 12:00 am
Author: mbajla
Length: 08:49
Rating: 5.00
Views: 152
Tags: funnel howto management marketing process sale sales software
Video Comments
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goofyfoot1dc (November 30, 1999 at 12:00 am)
Why Sales funnel? (How works sales funnel)- Another great video- good information.- Drake |
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