How to Build a Sales Funnel that Actually Converts
Fun fact: Whether you are aware of it or not, your business or nonprofit has a sales funnel.
In its simplest form, a sales funnel is a series of steps that a potential customer goes through before becoming a paying customer or donor.
Hopefully, knowing that you already have some variation of a sales funnel in place takes some of the overwhelm away when it comes to building a ‘new and improved’ sales funnel for your small business or nonprofit! If you think about it, you’re really altering and enhancing, not starting from scratch.
Understanding the basics of a sales funnel and how to optimize it at each stage will help any business or nonprofit build an intentional, step-by-step customer journey that leads to greater conversion and greater cash generation.
Sales Funnel Basics
A sales funnel is a visual representation of the customer journey, from the initial contact with a business to the final purchase. It's called a funnel because it narrows as customers progress through the different stages. At the top of the funnel are potential customers who are just becoming aware of your brand, while at the bottom of the funnel are customers who are ready to make a purchase.
The Different Stages of a Sales Funnel
The sales funnel typically consists of four stages: awareness, interest, decision, and action.
Awareness Stage: At this stage, potential customers become aware of your brand or product. They may find you through search engines, social media, or other marketing channels.
Interest Stage: Once potential customers are aware of your brand, they begin to develop an interest in what you have to offer. They may start to research your product, compare it to competitors, and read reviews.
Decision Stage: After researching and evaluating different options, potential customers will make a decision about whether or not to purchase from you. This is the stage where you need to provide the most convincing reasons why your product is the best choice.
Action Stage: Finally, the potential customer takes action and becomes a paying customer.
How to Optimize Your Sales Funnel
To optimize your sales funnel, you need to focus on each stage individually and ensure that you are providing the right information and incentives to move customers through each stage.
Awareness Stage: Use targeted advertising, content marketing, and social media to reach potential customers where they are most likely to be. Create informative and engaging content that helps them understand what you have to offer.
Interest Stage: Provide detailed information about your product, focusing on its benefits and unique selling points. Features are important to share, too, but learning about a product or service’s benefits are what is going to move the needle in today’s consumer 9 out of 10 times. Use customer reviews and testimonials to build trust and credibility.
Decision Stage: Offer incentives such as discounts, free trials, or other special offers to encourage potential customers to make a purchase. Provide clear and concise information about pricing, shipping, and other details to reduce friction and make the purchasing process as easy as possible.
Action Stage: At this stage, the customer or donor has made their decision, but the process doesn’t end! Follow up with customers after the sale to ensure that they are satisfied with their purchase and to encourage repeat business. Use feedback and customer data to improve your product and marketing efforts.
Building your sales funnel doesn’t have to be complicated, but it should be extremely intentional. As you nurture your audience through different stages of the funnel, you’re warming them up to make their decision.
A few of the most important marketing tactics to consider when moving your audience from one stage of the funnel to the next are email marketing, retargeting ads, and a great blog and social media content strategy.
Similar tactics, like email marketing, for example, may be used at each stage, but the way in which said tactics are used should be different and very intentional.
Improving your sales funnel and creating a journey for your potential customers is key to closing more deals and seeing a greater financial impact on your business or nonprofit. Working with a professional digital marketing agency, like Avorio Marketing, will take the guesswork out of it, allowing you to see greater sales/donations more quickly and easily.
