So you’ve been reading all the marketing blogs
…watched a bunch of videos on YouTube
…typed “how to get more leads” into Google
And, you’ve noticed this phrase –
…keeps coming up!
So, what’s a marketing funnel?
A marketing funnel is a series of steps – for taking a prospect and turning them into a repeat customer.
SO, why does your Business need a marketing funnel?
It’s simple – The “old school” way of marketing…does not work anymore.
The “old school” way of -
…you run an AD
…someone see’s your AD
…and then they buy what you’re selling
There are 2 BIG reasons this model doesn’t work anymore…
1) Your audience has checked out. Fact, the average person views over 6000 pieces of advertising per day. Your prospects are so good at ignoring your marketing – they don’t even have to try anymore.
2) The competition online is at an all-time high. The cost of buying cold traffic is too expensive now. You can’t just throw money at it and expect to get a positive ROI up front.
How do you get your marketing to stand out then?
Firstly, understand the consumer has the power today...(and that’s OK)
But, If you want their money, you’d better be able to answer, the only question they’re asking…
“WHAT’S IN IT FOR ME?”
With the increase in smart-phones. With a swipe of a thumb- your prospects can compare your offer with your competitors. In a matter of seconds.
Sounds pretty bleak right?
Well, it’s not all bad news...
We now operate in an economy of VALUE – not dollars & cents.
To break your prospects pattern of automatic dismissal.
You need to offer something of HUGE value - for little to nothing in return.
Something “too good to pass on”.
To win the trust of a disconnected audience…
Sometimes, you’ll need to GIVE, GIVE, GIVE…&…Then...Receive!
(Sounds exhausting, right?)
This is why you need a marketing funnel.
Because you make the profit on the back end. Rather than trying to fight for a slice of the market up front.
OK, let me break this down for you.
...before I go into how to structure of your funnel.
..Let’s look at how the numbers work.
That'll help clear up what I mean...
See, if you have to give on the front end – to get a foot in the door…
You’d better know you can make up for it - once you’re in the building.
A marketing funnel works because we know it cost less to re-market to warm traffic…
Than it does to buy cold traffic.
With the ability to pixel your audience. You can remarket to them at a fraction of the initial cost.
Or, if you get their email, phone or address. You can communicate via these channels. With little expense.
Another reason it gets cheaper on the back end is,
As you move prospects through your funnel you’ll lose a few at each step.
Meaning the number of prospects you can market to, reduce at each step of the funnel.
This is fine. You only need one or two to go all the way through your funnel and your ROI should be good.
Understanding your customer lifetime value will help make this process less daunting. As you’ll know your maths works even if you’re not seeing an immediate profit up front.
STEPS OF A SUCCESFUL FUNNEL
STEP # 1 INTEREST
Given your audience’s lack of interest in your marketing.
The first step in your funnel is to create an offer – your prospect can’t ignore it.
You'll need to do this without asking for much in return...
In step #1 your goal should be to either pixel your prospect, so you can re-market them.
Or, get their email, number or, address in exchange for your offer.
I like to send my cold traffic to a blog post that solves a particular problem.
My goal is to give value, introduce my business and pixel them – so I can re-market to them again.
Things you could use as an initial offer are...
- Blog Posts
- Social Media Updates
- Content Videos
- Lead Magnets
- Quiz/ Survey
- White Papers
STEP #2 THE HOOK
Now you know – what they want or what problem they want to solve.
It’s time to try and hook them in. In step #2 you want your prospect to engage with you.
I like to use a free download or give away at this step.
I’m trying to build on the value given in step one and WOW my prospect further.
In step #2 I’ try to get details in exchange for something of value.
Things you could consider using here are...
- Free Downloads
- Content upgrades
- Lead Magnets
- Free trail
- White Papers
STEP #3 THE SOFT CLOSE
Now you’ve introduced your business and hooked your prospect.
They should begin to feel comfortable with you. This is where we trial close with a soft up-sell.
What do I mean by “soft up-sell”? In Step #3 I’m still not trying to break into a positive ROI – I’m trying to get my prospect to make a stronger commitment.
This can come in two forms, Time or Money.
If it’s time. I'll try to get the prospect to commit some of their time for a webinar or free consultation…
If it’s money. I’ll sell something of value for a nominal fee (under $10). This method's called “Trip Wire Selling”.
It works on the premise of – when someone buys from you once they’re more likely to buy from you again.
Some of the things you could use for a soft close are...
- Free or Paid Webinars
- Flash Sales/ Low Dollar Offers
- Product Demo
- Book (Free or Paid)
STEP # 4 THE UPSELL
OK, it’s now time to bank some profit.
If a prospect has made it through the first three steps…
You can now ask for their business.
From a profit and conversion point of view. You’ll need to get the balance right with this offer...
You need your offer to be high enough you'll make a profit, but not so high - no one buys.
What could you offer, as a gateway sale to bigger sale in the future?.
STEP #5 UPSELL, DOWN SELL, CROSS SELL
It’s time to sell, sell, sell…
Any prospect whose still in your funnel at this point. Is a red hot buyer...
It’s time to offer your upsells. Your larger ticket items. Where you make the most profit.
If they don't buy. Offer a down sell - IE payment plans.
Then offer a cross-sell of other products that are comparable or related
This is the profit part of your funnel – It’s time to maximise ROI.
It’s here you can adopt the old adage – Keep Selling, until they either Buy or Die!!
At this stage, you should see you ROI swing from a negative to a positive position.
Your marketing funnel may take a different shape. Depending on your product or service.
But, the fact remains – without a marketing funnel.
You'll find it hard to get a positive ROI from your AD spend.
Once you’ve built your first funnel…
…you’ll then need to test each step and optimise them for conversions.
A marketing funnel is no longer a tool only “marketers” use. A functional marketing funnel is – critical to your businesses long term survival. What are some of the marketing funnel tips which have work for you?