Sales funnel indicates the funnel-based marketing strategy that describes the customer journey from the moment in which he has a purchase need until the purchase itself.
How Does It Work?
The sales funnel reflects the purchase process, and is divided into a series of steps, in which many potential customers approach a product, then only a few arrive at the end of the path, towards the purchase. Here are the steps:
Awareness: customers feel a need
Interest: customers show interest in a product, starting from a message or word of mouth, or simply discover it
Evaluation: customers study the different proposals, analysing the good or service offered by different companies or brands, research, possibly evaluate opinions and reviews
Decision: customers arrive at the purchase decision
Sale: the purchase is made
This process is defined as a funnel, because of the multitude of people who fall into the first step, only a few actually arrive at the final stage of the purchase.
The strategy
We have said that many potential customers enter the sales funnel, but few are those who pass all the stages up to the purchase. The goal of a correct funnel marketing strategy is to make sure that the number of people who come out of the funnel with the purchase made increases.
That's why it is essential to know the sales funnel and look for the best way to convert potential customers first into contacts (leads) and then into customers (customer). The most important moment is when the company or brand manages to get noticed by potential customers. Content marketing strategies enter this phase: having a blog, taking care of social channels, taking care of the SEO of your website, and then also using Google Adwords and Web Advertising (e.g. Linkedin). For each of the channels, it is important to develop a communication strategy with effective content, targeting recipients.
Afterwards it will be important to get a click, that is to bring the potential customer to the destination site through a landing page. Those leads will then be contacted and converted into customer, making the right offer, perhaps preceded by a trial period. The same contacts are extremely useful also to understand if the target audience is the right one.
The most important moment is when the company or brand manages to get noticed by potential customers
What happens after the purchase?
The purchase process does not close the funnel, because a customer must be loyal at this point. This is definitely one of the cardinal principles of the concept of meaning sales funnel. After the sale, it is necessary to maintain a stable relationship with the person who made the purchase, test their satisfaction, possibly lead them to repeat the purchase, and then turn those customers into promoters.
Likewise, the company or brand will have to worry about understanding why most potential customers don't become leads, and leads don't become customers. This can lead to changing the communication strategy, content marketing, the landing page and ultimately all the channels through which you get in touch with those interested in purchasing.
Increase the Conversion Rate
The sales funnel allows you to track the behaviour of possible customers through the purchase process. Understanding why a potential customer leaves and exits the funnel allows you to improve and consequently improve the conversion rate.
The heart of a correct sales funnel strategy also lies in customer relationship marketing. Understanding who he is, what is the difficulty that leads him to get out of the funnel, allows you to prepare personalised and more effective messages.
Different models
The concept of sales funnel is not as linear as it might seem. Modern studies show that various factors influence the customer journey, such as word of mouth or reading reviews.
These can induce a potential customer to make the purchase or leave the funnel. The sales funnel also depends on the type of business, the approach to customers and the company's sales. A cosmetic company and an automotive company will have two different sales funnels and two totally distinct approaches to possible customers, but both aim at getting to know customers and increase sales.
About Holborn Consulting
Holborn Ltd is a consulting firm specialised in supporting high-tech companies in the B2B business development market through Lead Generation, Business Development Outsourcing, Market Research and New Market Entry services.
Commenti