“How do we gain more purchasing customers?” is a top concern for any growing business owner. Unknown to many, an effective sales funnel strategy can resolve those concerns.
What is a sales funnel strategy? To the experienced digital marketer, this convenient tool aids in increasing conversion rates and business leads.
This strategy is visualised with a funnel analogy, seating potential customers at the summit and successful purchases at the base. The top of the funnel strategy represents the sales process as it slowly narrows down to the eventual purchase.
In short, the sales funnel strategy illustrates the processes of customer conversion into a four-part funnel.
Why is the sales funnel strategy important? Every stage in the sales funnel strategy presents the impacts on consumer behaviour.
Therefore, businesses should be well-acquainted with the sales funnel strategy for informed consumer analysis.
For example, the peak of the sales funnel represents a social media post’s reach. That post contains an external link to the business website and is accessed by several visitors, and this is the next stage of the funnel.
The users see a packaged offer on the business website’s landing page. Although some visitors leave, interested users read through the offer before purchasing.
Each of these steps fits the respective stages in the funnel strategy: Awareness, Interest, Desire and Action.
Moreover, various aspects can be applied with the sales funnel strategy, such as:
- Physical stores
- Websites
- Email marketing
- Consultation services
- Social media pages
…And many more! The sales funnel strategy is flexible for any marketing channel.
The Stages of The Sales Funnel Strategy
There are 4 stages in the sales funnel strategy. Each stage illustrates a specific process in purchasing.
Through the sales funnel strategy, digital marketers can understand the perspective of customers before purchases are even made.
1. Awareness
The summit of the sales funnel strategy is labelled as the “awareness” stage. It’s the stage where potential customers chance upon the business and learn about it.
Let’s say a prospect discovers the business through a social media marketing. It’s the prospect’s first ever encounter with the business.
There are numerous ways that positions customers in the awareness stage, such as:
- Word of mouth
- Video ads
- Print advertisement
- The signboard of a business
- Internet searches
…and many more!
Although a customer may be aware of a business, it does not guarantee transaction. However, prospects successfully coaxed into the store or business website proceed to the subsequent sales funnel stage.
READ MORE: Branding Consistency: Why Brand Consistency Is Important?
2. Interest
The second stage of the sales funnel strategy is “interest”. When potential customers learn of a business, they begin evaluating their interest in the business and any ongoing offers.
Sales funnel strategies based on appropriate market research will likely attract target audiences. Thus, customers who successfully proceed to the “interest” phase actively seek solutions or products due to pain points.
Before any prospect becomes a customer, the individual may conduct market research to assess the business further.
Any brand must market itself effectively on offline and online platforms to compete. If the customer is satisfied, they move on to the next stage of the sales funnel strategy.
3. Desire
Once the individual is informed about the business and the products or services provided, the customer’s research extends further.
Interested customers will search for information, such as:
- Ongoing offers
- Pricing
- Packages
- Product reviews
After all, customers are opportunistic and only opt for the best products and services that fall within their budget. Therefore, customers are likely to compare products in terms of pricing, packages, quality, etc.
To seal the deal, businesses should plan attractive offers or emphasize benefits without overrating the product or burdening the sales. Offers and packages should be within doable production fees.
Many common incentives that add value to current offers include:
- Free shipping
- Discount codes
- Shipping insurance
- Cashback
Irresistible deals urge indecisive customers to conclude purchasing decisions. Moreover, it reinforces the idea that the customer is making the right choice.
READ MORE: Top 8 Social Media Branding Strategies For Malaysia’s SMEs
4. Action
The “action” stage of the sales funnel strategy is the most anticipated. Although potential customers might find the offers attractive, anything can deter them into changing their minds.
Whether it’s a tight budget or a lack of urgency, even minor inconveniences can turn a potential customer into a leaving customer.
However, it doesn’t indicate that the prospect will never convert into a customer. If the prospect doesn’t purchase now, it is still possible that they will in the future.
After all, the individual is already informed of the business, products and services. The only next step businesses need to practice is to stay on top of their minds.
Businesses should persist in appealing to target audiences through various marketing strategies and foster connections with consumers, especially existing consumers.
Potential customers that successfully convert into customers become a part of the company’s “ecosystem”.
Well-established businesses are able to maintain good relationships with their consumers to guarantee the likelihood of repeated purchases. Moreover, customers that make repeated purchases also offer brand loyalty in return!
READ MORE: What Is Brand Audit: Brand Audit Guide For Malaysia Companies
4 Steps to Establish a Sales Funnel Strategy
1. Appropriate Target Audience Research
The probability of customer purchase influences the sales funnel strategy. Therefore, businesses should conduct thorough target audience research.
Digital media statistics such as engagement, reach, impressions, traffic and conversion rates are useful tools to monitor consumer behaviour. For example, posts with high engagement and reach indicate that users highly resonate with the content genre.
By understanding consumer behaviour, digital marketers can facilitate “what sells?’ and improve or eliminate what doesn’t.
2. Eye-catching content
Aside from market research, businesses should produce content that immediately catches the audience’s attention. There are numerous ways to attract customers before they even process a letter.
One of the most popular methods is placing offers on landing pages or social media banners that occupy ⅓ of the customer’s view. Businesses can also rely on appealing infographics, videos and even paid ads.
3. Landing Pages
Whether it’s an external link or an ad, clicking on it will lead customers elsewhere. Most businesses place their business website as the destination for interested customers.
The “front page” of a website visitors typically enter is called a landing page.
The landing page is in the earlier phases of the sales funnel. Therefore, business websites should ideally urge customers onto the following sales funnel stage.
Business owners should incorporate attractive offers and effective CTA that can extend the customer’s attention. After all, the average human attention span is only 9 seconds long.
4. Keeping in Touch
Although it is important to attract as many potential customers, businesses should also foster existing relationships.
Businesses can express appreciation through offers, special incentives or a simple thank you can strengthen business and consumer relationships in the long run.
READ MORE: Top 5 Brand Awareness Strategies for Malaysia SMEs
Walk Production
Walk Production is a digital marketing agency here to help companies in all aspects of branding. If the business struggles with effective digital marketing strategies, Walk Production has everything you need for a successful marketing plan.
WhatsApp us