Steps of a sales funnel

Imagine trying to sell a home in America to a person living in Asia. You are not likely to meet with much success. On the other hand, someone wanting to buy a home in America and living there will consider the proposal. You must target the right customer with the right message, which is why you need to have a sales funnel in place.

It is a very structured approach, and with the right strategy in place, your marketing efforts will succeed. As long as you send the right communications to your clients, they will keep moving down the sales funnel. They will make a purchase and even stay loyal to your brand.

As a brand grows, there are always changes in the approach to be incorporated. Even for known brands in new geographies, changes in the funnel may be required. But by and large, the steps remain the same. A sales funnel diagram is always helpful for marketers to understand the stages of the funnel the customer fits into.

So let’s take a look at the steps involved in the marketing funnel.

Step 1: Researching the target audience

Understand your customer, and you will understand how to win their hearts and, of course, pockets. Figure out what they like and where they hang out online. Different social media platforms can then be used to target them accordingly. For example: LinkedIn for working professionals, Pinterest for women, Instagram for millennials, etc.

Use surveys and forms to find out about their pain points, desires, aspirations, buying behaviour, favourite brands, preferences, etc. This way, your product development will be on track to meet their requirements. This is the best way to start the sales funnel process and stay on the right track.

Step 2: Building a buyer persona

If you do the first step right, you will be able to create a buyer persona. The funnel may have to incorporate multiple personas as the target audience is vast. 

The persona will be based on demographics like age, gender, profession, income, etc. This will help in specific targeting, especially on social media platforms. If you can identify even one person who is your perfect customer, you can target a similar audience. 

Facebook even has a feature called lookalike audiences. Here you can choose a customer as an ideal one. Then all users who have similar demographics, interests and hobbies are then targeted.

Step 3:Generate traffic to your site

If you want the buyers to line up to your site, then you have to direct them smartly. A lot of traffic without conversions is no good, so you also have to ensure the right kind of traffic is being directed to your site. 

Here are a few ways to garner traffic:

• Pay per click (PPC) advertising is always on top of mind for marketers looking to increase brand awareness.

• Social media ads are a great way to target precise audiences based on demographics

• SEO blogs on partner sites with backlinks, to drive traffic toward your site

• Video marketing with influencers on Instagram, with links to your site

• Email campaigns with attractive offers, based on online search behaviour

One thing to always watch out for is bounce rates, i.e. the number of site visitors who visit a single page on your website. If you have many people who leave your site immediately, you need to improve the user interface and functionality.

Step 4: Use engaging content

If the previous steps have been implemented correctly, you should have qualified leads by now. Educate them with email campaigns about your offerings. Give them just the right amount of information they need to put your brand on top of others.

Keep in regular touch with your leads. Webinars can be arranged for two-way communications. Let them know everything relevant about your business to be a right fit for them.

Your content should be tailored to meet the different stages of the funnel. Use surveys to find out what stage of decision making they are in and target them accordingly.

Step 5: Focus on qualified leads

Use forms to find out which customers are likely to convert and weed out the unqualified leads. Target the qualified leads with meaningful messages, even if it means paid ads crafted specifically for the stage of the funnel they are in.

If the customer is showing signs of awareness, get him interested. If he is interested, convert him. And if he has converted, aim for repeat sales. All of this requires specific content.

Imagine if someone has just started searching for a new TV, they would want to know about the features and benefits first. They are not interested in buying right away, so they have to be nurtured. Have a map of the prospects’ doubts and requirements to send the right messages.

Step 6: A/B Test to find what works

A/B testing is comparing two versions of a webpage or elements to find out which one works better.

Test elements to determine which ones work best and improve click-through rates (CTR). If you have two subject lines for an emailer, see which one gets higher open rates. Use colour coding to determine which part of a site appeals to the user and which one is driving him away.

Now you can watch live recordings of users navigating your site to find out where they are spending more time. You can also figure out how to direct them towards the products and help them check out easily.

Step 7: Convert with content management

Every aspect of your site should scream success. Loads of positive customer reviews should be there on your site and google reviews. Even if negative reviews are there, address the concerns genuinely, and resolve them. This is the natural process of product improvement, which is unavoidable.

Reputation management is another aspect of conversion. Social media comments should be monitored regularly. The good ones should be appreciated, and the critical ones should be addressed forthrightly with honesty.

Use comments and reviews as a tool to put forward your fundamental values and principles. Once the customers believe in what you have to say, they will convert.

Step 8:Identify reasons for cart abandonment/ sales abandonment.

If a lead has been nurtured for a long time, convinced by the sales team, but develops cold feet at the last minute, you need to identify the reasons for the same.

In the case of online sales, it could be due to hidden charges, shipping costs, unsecured payment gateways, lack of alternative payment options, etc.

In the case of physical sales, it could be due to last-minute doubts or competing offers.

The best way to close the deal is to reach out to the customer through phone or automated messages. Use testing to fix payment glitches so that more orders are not abandoned.

Step 9: Retain the customer after conversion

A lot of effort goes into conversions. Offers, discounts, shipping costs and after sales service all play a key role in the sale.

But the story doesn’t end here. If you have found a good customer you have to do your best to hold on to him.

Here are a few ways to retain clients:

• Loyalty programs which offer rewards are a great tool to retain clients.

• Online subscription models which offer discounts are another tool: a case in point being Amazon prime.

• Value driven accounts which offer sweepstakes, coupons, etc. also work well.

Why should you follow the sales funnel process?

The answer is simple, to make the most of your resources. At the top of the funnel you want traffic that fits your target audience. 

In the middle of the funnel you want to provide them with engaging and entertaining content. In the lower funnel you want to remove doubts and close the sale. 

Having a sales funnel diagram designed specifically for your business needs is desirable.

Only 3% of visitors to the site go on to make a purchase, so one has to ensure a trouble free shopping experience. 

All of this requires that the right leads are generated and converted. If a buyer is looking to close a sale, you should not message him about basic information, he already has it.

On the other hand, if a buyer has just started searching for a product, then the whole process of lead nurturing has to take place.

Knowing where your leads are coming from is also essential so that you invest your resources in the right place. Whether it be google ads, Facebook, Instagram reels or SEO blogs.

Use a wide variety of offers to get the leads to actively consider purchasing. Work on the stickiness of the landing page so that conversion rates improve.

Always be aware that the process may be longer or shorter depending on the type of product. If it is a low value product like a soap then it is quicker. But if it is a high value item like jewellery then the effort for lead nurturing is considerably greater. 

The sales funnel process doesn’t end with a sale though. It’s a never ending process over the life cycle of a business to acquire, satisfy and retain customers.

Stick to the steps of a sales funnel to grow your business, read more such blogs with insightful marketing data at CuriousOwl.