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What a Sales Funnel is and Five Reasons Why Your Business Needs One.

You’ve probably read or heard the term ‘Sales Funnel’ and wondered what all the fuss was all about. Well, we’ll explain now in super simple terms what sales funnels are, what they do, and why everyone is talking about them.
A Sales Funnel is a marketing tool used by businesses to generate leads and make sales online. The upside-down triangular shape of a funnel works as a visual representation of how the whole process works: at the top are the total potential customers, gradually narrowing down to actual paying customers at the bottom. Hence the name ‘funnel’.
Each funnel is designed to suit the specific needs or goals of the business or offer and can comprise as many steps as you like. Regardless of the number of steps, most funnels contain four main sections:

Awareness/Attention - Interest - Decision - Action (AIDA).

Awareness/Attention

The goal of the first stage of the funnel is simply to create awareness of your business within the marketplace and let people know that you exist.

Interest


Now that people know who you are and what you’re offering, consumers can visit your website or landing page to find out more, or receive some free content in exchange for their email address.

Decision


People are still weighing up their options at this point, deciding how much they want/need your product and comparing offers. It’s time to unleash the power of persuasive copywriting and present a compelling case for why they need your offer and why to choose you, not your rival.

Action

This final stage is the culmination of the entire funnel; if you’ve got it right, the prospect now feels reassured that what you are offering is of value and they’re ready to commit their money to it.

All sales funnels are set up according to their unique needs/goals - for example, an offer aimed at pre-existing customers can begin lower down the funnel (they already know who you are and trust you) but the basic mechanics of all funnels are exactly the same.
So the question is...

Does My Business Need a Sales Funnel?


Well, if you have a website, or if you plan to use the internet as a means of attracting customers then - even without knowing anything about your business - the answer is 100% YES!
There's a ton of reasons why you need a sales funnel for your business but we’re going to focus on the five most fundamental.

Five Reasons Why Your Business Needs a Sales Funnel:

1. Build an Audience


If you’re running a small/medium sized business - or are thinking of starting a new one - it’s possible you aren’t yet 100% clear on exactly who your customers are and how to reach them.
A sales funnel effectively does this for you by drawing qualified leads to your website or landing page and enticing them to opt in (not bounce after 20 seconds). This reveals to you exactly who is interested in your product and - by gathering their email addresses - you now have a list of potential new customers.

2. Establish a Marketing Strategy

Running online ads in the hope that enough people find you and end up buying something is not a real strategy; your website - just like a physical store - needs to be visible, and it needs to be tended to.

Sales funnels provide a clear customer journey that welcomes new visitors, introduces your company, offers them something of value in exchange for their details, and ultimately steers them to the checkout. Funnels can be adapted to target consumers at all stages of their relationship with your business - whether first time visitors or existing customers - the journey may differ, but the basic principle is exactly the same.

You now have an automated process that serves as a marketing expert and sales assistant rolled into one; its job is to qualify leads, nurture new clients and generate sales around-the-clock, 24/7.

3. Build Relationships

Business is not just about selling, it's about serving. Consistently giving value to your customers, building a relationship that mutually benefits both parties, is a blueprint for faster growth and sustained success. Customer loyalty is scarce in today’s fiercely competitive markets where consumers are savvy and have endless other options. Blunt sales-patter and hard-selling are over.
Fostering quality relationships with customers based on trust and familiarity is key. Funnels act perfectly as way of making that introduction, but their real power is felt over time when real trust has been built, and you can keep selling to the same client base.
Naturally, the strategies you use with prospective new customers will differ to the way you approach existing clients - not only the products/services you offer, but also the way in which you communicate. However, while the content and techniques change, the basic principle of the funnel remains the same.

4. Generate more Sales


Sales funnels - as the name suggests - are designed to sell; each stage is created with the precise goal of turning potential customers into paying customers. But this isn’t about simply making a single sale and saying “so long, customer!". Having done the hard part of warming up cold traffic and driving them down to the Action stage of the funnel, you have now opened up more sales opportunities. At this point, most sales funnels incorporate cross-selling - when you offer an additional, related item as the customer is about to check out; or up-selling, where you give a customer the opportunity to upgrade their purchase to a higher-value product.

5. Scale Up


The final reason why you need a funnel - or series of funnels - is to build scalability into your business. Entrepreneurs start out with a fantastic idea or product but usually fail to turn it into a profitable business because they lack structure. It’s vital you have processes set in place to fulfil specific tasks - from marketing, to customer service, to sales. A funnel addresses all of these fundamental areas, it will:

  • Qualify leads and drive quality traffic to your site/landing page
  • Map out a clear customer journey based on specific goals
  • Split-testing so you can see what styles, offers, prices etc. best suit who
  • Grow an email list - an invaluable asset to your business
  • Provide a platform from which to communicate with your audience
  • Process online transactions 24/7
  • Take customers up a value-ladder and sell them products of higher value

Now you have an established framework within which your company can grow; this comes from having a deeper understanding and appreciation both of your business and of your customers.