The sales funnel has been a part of conventional business and marketing for times untold. The use of the term ‘funnel’ for this marketing concept is simply to help visualize and explain a sales process from the beginning to the end. Because it uses a wide entry way for potential customers ‘Unqualified Prospects’ at the top and a much narrower opening for converted sales at the bottom the term funnel is an accurate comparison.
At the top or entrance to the sales funnel are folks who could need your products or services, but you have never contacted them before. By the end of this funnel, several offers and sales actions later, you’ve gotten folks who’ve obtained your product or service and made a purchase as well.
The sales funnel is actually an organized marketing process in which you methodically direct your prospects into becoming customers and, also, convert them into even more ready to spend customers. Your customer base gets scaled-down as your net profit goes up because you provide higher priced products and services to your ready to spend customers at the base of the funnel.
There are different types of marketing funnels they can be very simple to highly complicated in their design but they will all have a top or front-end and a bottom or back-end.
A sales funnel will allow you to see exactly what and where your sales process is failing or succeeding, or if your campaign isn’t getting a sufficient number of prospective customers somewhere in the process. This information allows you to choose exactly where you should focus your attention and work to maintain sales at the necessary level as well as, to fulfill marketing goals. It’s used as a method to gauge and manage the customers sales process.
One reason the concept of a funnel is effective is that it makes it possible to monitor your potential prospects actions at different stages of the expanded sales process. Using the sales funnel, through figuring out the quantity of qualified prospects at each point of the process, it is possible to anticipate the number of prospective customers who’ll, after a while, turn into actual customers.
While people are moving down your funnel, the number of them will decrease, but, and this is more important, the people staying in the funnel most likely are more willing to pay for your related more expensive products. So non-targeted people will be filtered out in the sales funnel. And the ones who stay, will buy more, and this will increase your conversions! Focus your efforts on those people and give them what they need, and you will sell also high-ticket products.
Online marketing is a numbers game. And with each marketing phase in a sales funnel you can quantify the number of perspective customers, and then take the data to