The Power of Funnels
Would you believe me if I told you that elements of our business that we consider mandatory today were ‘nice to have’ luxuries around 10 years ago? Growing up in a household where both my parents were business owners, I remember the round table discussions that would take place over morning coffee:
‘Oh do we even need websites? All we need is a listing on yellow pages, white pages or have our weekly newspaper ads. That’s where people will find us…’
Today, we can’t help but laugh because having a website is not only a business essential, but it is compulsory if you want to be a contender in the market. Isn’t future sight an amazing thing? Imagine if someone was there to tell business owners back then how impactful websites would be in 2019. Or even better still, if someone was here today to tell you about an impactful marketing strategy in 2020? Well, we are about to give you that future sight now.
Marketing funnels. You have heard it before, it is a topic at the forefront of business marketing strategies. And for good reason. Marketing funnels are the progression from having a website, and these funnels are the crux to generating more leads and sales.
In this blog, we are going to take you through the power of funnels and why you should get ahead of the race, today.
Whichever business can spend the most money or time to attract customers, will win. If that is your business, then you win.
Let us illustrate this with an example – yoga businesses.
We were working with a client who owns a yoga business; they were selling a monthly deal for $59.
By the time they paid for lead generation ads, the induction, free sign up gift and other administrative tasks, our client was actually only just breaking even to acquire new customers to their low value deal.
That’s correct… the customer was breaking even, at best, on each customer. We can just imagine the pressure our client would have been under to sell these new customers an ongoing membership in order to profit from new customers. Talk about running a tight ship!
The business couldn’t continue to run like that, or if it did it meant that it would always be under pressure. The stakes would be high.
Our objective was to help the client to generate profits from new customers signing up to their introductory low-value deal. Read on to understand how we did it…
I don’t know about you, but I get upsold very easily when it’s stuff I need. For example, I was in Kmart the other day… I went in to buy a notebook, I walked out with pens, a whiteboard, a drawer divider and countless other items. Kmart doesn’t make money from you just going in to buy one thing, their shops are strategically mapped out, designed in such a way as to entice you to walk out with a bunch of stuff! A similar strategy is implemented in Woolworths, you would have noticed how irresistible items are near the checkout stations on your way out. How about when you are going through the drive through at Hungry Jacks? “Would you like a combo meal that includes coke and fries?”
Ladies and Gentleman: THAT is where the profit is.
So, when it comes to YOUR product or service, think about what the next thing is that your prospects will need, in addition to what you are driving them to your landing page for.
Going back to the yoga studio example, we began to brainstorm what the next thing would be. We identified that a new prospect would likely need a yoga mat, a towel and perhaps a drink bottle.
What we did here was we continued to drive them to a landing page for the $59 deal, but on the next page we added in an upsell for a $50 value pack (the cost of the value pack to our client was $20, which meant a $30 profit per value pack sold). This included the following items:
- Drink bottle;
- Yoga mat; and
So, we are NOW generating $109 per sale (the $59 deal plus the $50 value pack) and making a $30 profit to put back into lead generation ads to bring in more new customers. And you just keep going like that.
I am a true believer that there is no such thing as a marketing ‘budget’. The idea is if $1 generates you $2 – then keep going.
Websites can be an incredibly confusing maze for your prospects to navigate. There is nothing more frustrating for a prospect than being driven to a website home page from a lead generation ad, and there are a million things to do; view services, call, make an appointment, FAQs etc. Typically, this equals to your prospect getting overwhelmed, giving up on what they were there for and bouncing off your site.
A cleverly designed marketing funnel will reduce your lead generation costs, and can even start to generate your profits on your low value introductory offers. You can essentially make more money for every dollar you spend, by driving your prospects to targeted pages where you can grab their attention and make them do the ONE thing you want them to do most: complete a transaction.
For your prospects, a cleverly designed funnel makes it easy to do what they came there to do without any distractions.
Like I said before, whoever can spend the most money or TIME to gain customers – WINS.
Regardless of whether you have paid traffic or organic traffic, the first goal is to GET PROSPECTS INTO YOUR FUNNEL AND GET THEIR EMAIL ADDRESS. That is when the magic happens.
Imagine if suddenly tomorrow, Instagram, Facebook, LinkedIn and even Google, turned off. What would you have left? That is right, your email list. Your email list is your golden ticket to success.
Paid traffic (money) is traffic from ads including, Facebook ads, Google ads, LinkedIn ads and other online ads that involve a monetary commitment.
Organic traffic (time) is from your Pinterest, SEO, Instagram and Facebook.
Information overload? What do I do now?
At Searchbox, we can help. We love guiding our clients through their sales journey online. We eliminate any areas of friction that your prospect would likely experience and we create a reliable mechanism that allows you to generate leads, nurture them and convert them into customers. The end result? Your business WINS. Get in touch with us today.