Do You Know What a Sales Funnel Is?

You may hear the term “sales funnel” or “funnel” on many marketing sites, how to build a business books, etc.  Most people, unless they are in real estate or some type of sales business, do not really understand what this is.  However, it is VITAL to YOUR business, no matter what your business is.

Have you ever wondered why your competitor seems to have an endless stream of clients or customers?  How, no matter what, their doors seem to be opening and new people walking in, and their merchant accounts are going ca-ching all the time?
The reason is very simple – in most cases, they have created a “sales funnel” for their business.  Some people call it a “pipeline” as well.  Either way, it is simply building a list of prospects that you continuously touch base with in order to build a relationship.
Face it, unless you are just plain lucky, everyone who walks through your door or visits your site is not going to buy.  There are rare instances on certain specialty products, but if someone is “browsing” or just in the market but not ready to buy yet, you will not get the sale.  This is where 90% of businesses fail.  They treat customers as a one shot deal.  If they don’t buy, then they are lost and just dismissed.
Successful businesses, however, find a way to keep in contact with that prospect.  I know you have seen this everyday, but probably do not realize it.  What are some examples of funnel builders:

• Online give a ways/downloads
• Contests
• Cruise drawings are popular
• Free gym membership “boxes”
• Loss leaders
• Paying customers of course

Anytime you can find a way to collect a prospect’s email, address or phone number, you have them in a sales funnel.  This is important to your business because your marketing and advertising efforts should be geared to fill that funnel.

Exactly How Does a Funnel Work?

Let’s say you sell high end stereo equipment.  Now, you know this is a very competitive market.  You are not just competing with other high end stereo dealers, but also cheap knock offs and lower quality equipment.  If your average sale/install is $2,500, do you think that you will get someone to come to you off a yellow page ad or flyer that just listed a system and a cost?

If someone was ready to buy right then, maybe.  However, what about all the people who are interested but are not ready to buy yet?

You want to make sure that the ad you just paid for also grabs them.  So, what do you do?
In the ad you offer something very cheap or free.  A freebie can be a comparison manual, or anything downloadable or easy to print, that your market will find interesting. It can also be an accessory that everyone wants that is dirt cheap for you, when they come to get it you can get their contact information.
Cell phone and pager deals did this extensively and some still do. They offered a “skin” or face plate for free, just to get people to the stores or to the website knowing they will likely buy more, maybe even a new phone.  It worked like a charm.
There are more examples like this all over the place, just look around.

Building and planning out your sales funnel is absolutely critical to your success.  Confused, or not quite sure how to do this?  Just  give us a buzz and let us answer your  questions.  Click here to schedule an appointment.