Sales funnel or conversion funnel: what it is and how it works
A sales funnel , also known as a conversion funnel , is a digital boost b2b or b2c strategy that allows any company to grow. We are living a moment of important change to which we must adapt, where new relationships with customers prevail, and this technique is endowed with a series of specific steps to guide potential customers when making a purchase decision.
When we want to increase our sales, it is essential to attract visitors and motivate them to generate conversions that lead to new customers. However, to carry it out, it is necessary to follow a procedure studied to create value in each of the phases of which it is composed.
From here we are going to update you on what a sales funnel is and how it works . We will also see what are the stages by which it is governed and how to carry it out in your company. Let's start!
WHAT IS A SALES FUNNEL OR CONVERSION FUNNEL?
The sales funnel is a digital marketing method that defines the steps a user takes when entering a website. Normally, you're looking for information, but if you like what you see, you can sign up or even make a purchase (called a purchase funnel).
Following all the phases of the sales funnel will allow us to know some relevant data such as the percentage of losses that take place from the time the user accesses the web until the final goal is met, which is usually the purchase of a product or service. In addition, it helps to identify what is happening with the flow of users entering the platform in order to detect errors and correct them.
The conversion funnel is part of the so-called inbound marketing , a digital discipline that does everything possible to reach its target audience without being too intrusive. The way to do it is very simple: providing content of value to the user, within which we find covert advertising that is very effective.
The conversion funnel has a very clear intention: to capture relevant data on potential users through the performance of some actions in which offers or valuable information are offered, to finally convert them into customers.
The more qualified data you have, the greater your chances of selling. At first you may find yourself a bit lost, but the goal is to obtain a well-planned sales system that works practically only through a good CRM that helps you manage your customer relationships.
HOW DOES A CONVERSION FUNNEL WORK?
Now that you know what a sales funnel is, let's talk about how to manage it and use it to your advantage.
The first thing will be to take care of each of the stages of the funnel , although before getting down to work, it is important that you have these aspects clear:
- Define and mark the objectives of your business.
- Know the principles that govern inbound marketing .
- Make sure you have a competent sales and marketing team that can help you take care of and develop each phase.
Once the previous actions are ready, it is advisable to choose the perfect software to be able to work the digital marketing funnels. Only then can you go from having prospects to having customers.
The CRM is a management system that will allow you to analyze each stage of the conversion process and know all the necessary metrics to achieve your goals. Before choosing the right program, make sure it is intuitive and easy to use so that your team can get the most out of it.
That said, there are a few tricks to boost your conversion funnel . Each level from the sales funnel involves some actions associated with different marketing strategies. Do not forget that the objective is to strengthen the relationship with your consumers and to do it correctly you have to take note of some tips.
ANALYZE THE BUYING CYCLE
Analyzing web traffic from the moment the user enters the web until the purchase is completed is essential. The data will allow you to make the right decisions and consider certain activities associated with special promotions or the creation of landing pages to convert your visits into leads.
MONITOR METRICS
Through the metrics you will be able to know the evolution of the project taking into account the objectives set. To stay up to date and boost sales opportunities, it will be necessary to design metrics on a regular basis.
DIFFERENTIATE WELL THE PHASES OR STAGES OF THE FUNNEL
It is key to know how to distinguish specific actions for each phase according to your objectives and the product or service you offer . That is why it is important to be aware of the purchase cycle and carry out differentiated strategies at each stage.
TAKE CARE OF SEO
In each and every one of the phases of the sales funnel, it is important to pay attention to positioning in the main web search engines. The more quality the content you contribute, the more positions you will gain in Google and the more visits you will have.
In this sense, it is very useful to pay attention to several aspects: knowing what keywords are used by users, knowing the social networks where they spend more time to interact with them, and what other media or companies that have to do with your sector, create links that lead to your website.
Now, creating digital marketing funnels involves some involvement and takes time, although the effort will lead to great results in the future. However, if you need advice or do not master the most cutting-edge measurement systems and the most effective recruitment methodologies, use Elabs so that together we can define and plan powerful conversion campaigns.
ADVANTAGES AND BENEFITS OF A SALES FUNNEL
If you are still not clear about the reasons why you should work on a sales funnel or conversion funnel, we are going to list some of the advantages associated with this inbound marketing business strategy so that you think about it:
- The main advantage of the sales funnel is to allow you to plan an optimal marketing plan that serves to achieve great profitability.
- Through the sales funnel you will know the percentage of user loss that takes place in each phase so that you can act accordingly.
- You will be able to analyze user behavior on your platform to identify errors and make improvements. In short, it will provide you with the keys you need to optimize your website and achieve the final goal.
- Forget mass and intrusive marketing and use a conversion funnel to focus on the public interested in your product . Of course, first of all, you should know what your ideal target is.
- It will help you calculate the return on investment or ROI of your campaign in order to analyze its performance from a financial point of view.
- It will get as many visitors as possible to the last stage of the conversion funnel.
PHASES OF A SALES FUNNEL
Next, we are going to describe the basic stages of the conversion funnel or sales funnel. Basically, we have divided them into five phases and they are as follows:
MAKE YOUR BRAND KNOWN
This first phase is distinguished by the different online marketing strategies used to position your brand. To do it well you will have to interact on social networks , carry out good SEO optimization , gain visibility within your sector and attract as many visitors as possible to your website.
GAIN THE TRUST OF THE VISITOR
The effort and perseverance you put into your marketing strategies will be useless if you do not earn the trust of the audience . They usually say that the first image is paramount, and in the case at hand, it couldn't be more true. Arouse the interest of users who come to your website and make a good impression on them through your content, images, promotions, etc.
Before selling any product or service, you must educate the customer. How? Showing him everything you know about the subject and giving him valuable content for free. That way, they can get to know you and learn more about your brand.
To sell, you don't just have to focus on selling, but you have to follow a process that consists of attracting, educating, convincing and creating a relationship between the two until you reach the final goal of selling. If a client has provided you with their data when showing interest, continue educating them through your emails, blog or social networks.
RETENTION
If the user has come this far, it is very good news. He has chosen you, as a valid option, to be able to make a final purchase and so that he does not abandon his idea, you should try to make him spend as much time as possible on your website. Through registration, users will provide you with their data to track and gain their loyalty.
SALES
If your audience has reached this point in the conversion, it means that they have become customers. Of course, for the purchase process to be done effectively, provide as much fluidity as possible and make this task not too complicated to avoid abandonment. Keep in mind that you should facilitate the purchase as much as possible, making the process quick, easy and comfortable .
LOYALTY
Once the sale has ended, we must do everything possible so that buyers return to purchase our products or services. The first thing is to make sure that they are satisfied with their purchase to the point of recommending us. In fact, you can ask them to do it, perhaps with some economic reward, discounts or points.
When closing a sale, your next task will be to build customer loyalty and provide valuable content . If it is a lost sale, you should not give up at the first opportunity, because over time it can become another customer or make your brand or business known.
PRACTICAL EXAMPLE
Netflix is a streaming service to watch all kinds of audiovisual content, such as series, movies or documentaries. Users pay a monthly subscription, allowing them to access all that content across different devices .
Netflix is one of the popular platforms with the highest number of subscribers. In fact, a 2018 investigation carried out by the German statistics portal Statista showed that at that time it had almost 73 million subscribers.
The most curious thing of all is that it is a very simple platform, but sometimes with simplicity you get the best results. And it is that on its website you will find easy-to-read texts that users will understand without any problem. In addition, visually attractive images appear on its main page that change depending on the movies or series that are being promoted at that time.
Netflix makes it very easy for the user and its subscriptions are not subject to permanence commitments. In this way, the user can cancel his subscription at any time without being subject to anything.
STEPS IN YOUR SALES FUNNEL
- Main or home page . As we already mentioned, it shows all the series and movies that it has in promotion and makes it very clear that there is the option of a free trial that is not subject to any commitment. In addition, they also make it clear that there is no risk, since users can cancel the subscription whenever they want.
- Prices . Users can easily access information on current rates through the "Frequently Asked Questions" section. Here the different options that exist will be specified in a clear and detailed way so as not to confuse the visitor.
- Registry . On the registration page, the user can subscribe to the plan that most interests him, completing the empty spaces of the form through various personal data.
- Payment Information . Netflix allows you to choose between multiple payment options, something that the user appreciates: credit card, PayPal or gift card. Users, in addition, also have the possibility to change the payment method through the edit function.
There is no doubt that it is the example of a good conversion funnel that stands out for its simplicity. Its platform is focused on the consumer and is capable of clearly and efficiently clarifying any doubt or query.
In addition to having a powerful brand that it has built for itself without having to resort to a large investment in advertising, it has generated a relationship of trust with the user by providing an efficient telephone customer service.
