There are many different tools that are used to increase sales and make the business profitable . Among the most accessible and easy to use is the sales funnel, which has a number of advantages.
Funnel sales - what is it?
The principle that shows the distribution of customers for all stages of a bargain, from acquaintance and finishing with the purchase, is called a sales funnel. Such a concept was proposed in 1898 by a lawyer from America, E. Lewis, to describe and analyze the psychology of consumption. The sales funnel is a tool that can be used in various trade areas, from an online store to large networks.
Reverse Sales Funnel
To evaluate Internet marketing quickly and without using an expensive analytics system, you can calculate the necessary data using a back funnel. With its help, you can understand whether everything works normally or not.
- The funnel method of sales implies the development of a plan for a month (see the picture).
- To control areas of influence, you need to bring a lot of traffic to the landing page. To do this, use: retargeting and remarketing tools, increase advertising budget and cost per click, increase the target audience and add new advertising tools.
- We look at the sales funnel: the number of clicks - 1000, the conversion - 10%, the lead - 100, the conversion from the lead to the sale - 5% and the number of sales - 5. Hence we can conclude that to implement the plan will need to double the initial indicators.
- The simplest way to do this is to use the law of large numbers, to increase scripts and algorithms.
- Step # 2 - you need to increase the number of leads, and sales figures can not be increased. After that, it is concluded that the number of increased leads is not enough, and another 800 visitors should be added. The result can be seen in the picture - Step # 3.
Funnel sales - stages
Initially, the presented principle included only four steps, but over time the funnel was expanded. It should be said that the principle and stages regarding how the sales funnel works may differ depending on the direction and form of doing business. Nevertheless, it is important to highlight the most common option.
- Creation of a universal trade offer (UTS) to interest potential customers and stand out among competitors.
- The optimal sales funnel includes advertising, and its method should be selected for a specific case.
- Simultaneously, or instead of advertising, cold contacts can be used, which represent an initial acquaintance with a potential client, so that in the future he becomes a buyer.
- At this stage, preliminary negotiations are held with people who have already shown interest in USP and it is important to convince them of the need to make a purchase.
- Important is the stage of the sale, and the number of people who have reached it is the main indicator of the conversion of the sales funnel.
- In the end, after-sales support is provided, so that customers from one-time to permanent.
What is the sales funnel for?
There are a number of specific advantages that can be obtained by using the presented method.
- Helps control the sales process at each stage.
- The correct sales funnel gives a chance to analyze the manager's performance.
- Determines which stage requires adjustment due to the large number of sifted customers.
- To understand what the sales funnel is in trading, one more important advantage of this principle should be mentioned - it helps to increase potential customers.
- Helps increase business profitability.
Funnel sales - examples
To understand how the above scenario works in practice, the following instruction should be considered:
- The seller conducts a dialogue with the buyer to understand what he likes and what he wants. It is important to get the most information for choosing the right product.
- A crow of active sales involves the formulation of a profitable proposal, so it is important that the seller has the necessary knowledge.
- Use of various bonuses and discounts, for example, fast delivery, free maintenance, etc. It is important to present such gifts as exclusive.
Funnel sales - online store
Many businessmen carry out sales on the Internet. To get the selected product, a person must go through several steps. First, the potential buyer, interested in the theme of the site, enters it, selects the product and adds it to the basket. Will only have to register, place an order and pay for it. The sales funnel for the online store is optimized according to this scheme:
- Reducing the process of making a purchase. It is necessary to reduce the number of stages that the buyer must pass before completing the purchase, and the fields of required filling.
- Conducting an analysis of the comfort of using the site.
- The sales funnel means optimizing the speed of downloading the site.
- Segmentation of users is necessary in order to use special offers. For example, registered buyers can see additional discounts, and beginners receive information about the benefits of goods.
- System of different bonuses and accumulative programs for regular customers.
- The correct content for the site is of great importance, so choose specialists for this.
- Mandatory use of feedback and recommendations that increase the credit of trust of future buyers.
Funnel sales - real estate agencies
Let's consider one more example, how it is possible to use the presented principle in granting of realtor services. Funnel sales of real estate can include several positions:
- Views of existing ads and the number of clicks and requests for information.
- There is a first interaction with the client and studying his needs.
- Develop and offer solutions to meet all requirements.
- After this, the client needs to give time for analysis of the information received. The sales funnel calls this stage - the evaluation of decisions.
- Negotiations to clarify the different details: prices, terms, terms and so on.
- When everything was taken into account, the client gives a deposit and the transaction begins to be prepared.
- It is important not to forget about the after-sales service.