Are you using a sales funnel to help make your marketing easier?
What is a sales funnel?
Depending on who you ask, the term “Sales Funnel” has a few different meanings. Here’s my sales funnel definition:
A sales funnel is a well thought-out mapping of your products and services designed to convert your leads into VIPs (Very Interested Prospects) and your VIPs into loyal customers.
If you don’t have a sales funnel, you are probably struggling with:
- Having lots of products and services, but inconsistent sales on anything you offer,
- Figuring out what to promote and when to promote it,
- Deciding how to frame your offers and who to present them to, and
- Clearly communicating the best way for potential clients to work with you
- Projecting and reaching your monthly revenue goals
How does a sales funnel work?
When implemented successfully, your sales funnel is a clearly defined roadmap for how you attract, engage with, and provide solutions to your ideal clients. The entry point to your sales funnel is when someone opts-in to your email list. They can opt-in through a landing page or they can physically sign up at a live event. From that point, your funnel leads them step-by-step through your offerings. Each step in your sales funnel advances your VIPs to offerings at higher and higher price points. Your first product might only be $47. Your second might be $297, then $997 and eventually a $5,000 or even $10,000 experience.
Does it mean that you have to force people to go in a certain order, absolutely not. But having an organized approach for how your VIPs and clients can deepen their experience with you and increase their investment just makes sense.
Why is having a Sales Funnel Important?
#1 – You’ll stop wasting your time and effort promoting products and services that aren’t aligned to what your audience wants. Imagine how your profits would turn around if you stopped focusing on the 80% of your offerings that don’t sell, and got really strategic about how you promoted the 20% of your offerings that actually make you money.
#2 – It will be easy to decide what to promote and when to promote it. I used to panic every time I had to put a new email newsletter together. I knew I should have a call to action but I wasn’t sure what it should be. Thanks to my handy- dandy sales funnel and promotional calendar, I know exactly what to promote in each newsletter, via social media, and even when I make an offer at a live event or webinar.
#3 – Everything you offer is not for everybody you serve. More than likely, you have prospects and customers that have different needs. I primarily serve coaches, consultants, and holistic practitioners. Some of them are struggling to get clear about their niche and audience. Their entry point into my sales funnel is What Type of Entrepreneur Are You; a free quiz that helps service-based entrepreneurs figure out the best business model and marketing path.
For those already clear about who they serve and how they serve them, they want to create products to increase their passive income. Their entry point is 52 Digital Product Ideas. For each solution we provide to help our clients profit more and work less we have a specific entry point and marketing path that guides that nurtures them from awareness to buying.
#4 – Your results, benefits, and offerings become crystal clear. Since I have a clear map of how I best serve my audience, it is easy for me to invite them to work with me. When I first started coaching, I had a long menu of services to offer potential clients. I thought my unwillingness to narrow my offerings made me seem experienced. It actually made me look scattered. It also made me a bit tongue tied in sales conversations where I tried unsuccessfully to explain the 7 different ways they could work with me.
It might sounds counterintuitive, but people that are ready to get results don’t want a laundry list of options. They expect that you as the expert will know what they need. If you can’t clearly identify where they fit in your sales funnel, and make them a straightforward offer, your sales conversations will be frustrating.
#5 – You have a clear plan for how to leverage your existing client/customer base. The ability to upsell your existing clients into new experiences and offerings is one of the best ways to increase your profitability. Why? Statistics show:
- The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Small Biz Trends.
- And 80 percent of your future profits will come from just 20 percent of your existing customers
Bright entrepreneurs limit their focus to new customers. Brilliant and bankable entrepreneurs know that it’s easier to increase their profits by making repeat sales. Your sales funnel helps you smartly market to your existing customer base who are more likely to invest in your higher ticket items. For example, 50 sales at $47 is equal to one sale of a $2,500 product. Compare how much time and money will it cost you to get 5o new customers vs. what it will take to up-sell a satisfied customer that knows the value of what you have to offer.
What questions do you have about creating a sales funnel or implementing it effectively?
Our new class, Sales Funnels for Beginners is designed to help you create a profitable sales funnel (or fix a broken one. Click here to learn more about the class and grab a spot.