You probably must have heard of the words Sales Funnel before, right? It may sound obvious but often a business will forget the fact that the only way to make money is to get customers to buy. And the best way to get customers to buy is having an effective Sales Funnel.
A sales funnel is set of steps where you guide a prospect through a series of communications that results in them buying from you.
But what happens after that first sale is made? Existing customers are the people who are most likely to buy from you again.
How Does A Sales Funnel Work?
At the top of the funnel, you offer something for free in return for getting a prospect’s contact information. This could be a report, checklist, video or eBook. Then you begin marketing, following up with emails and other communications to attempt to make a sale.
Throughout your sales funnel process, you should have several offers that complement each other. For instance, before you buy a car, you take it for a free test drive. If you like the car and buy it, the salesman doesn’t just hand you the keys and then vanish. You’re offered extended auto warranties, enhancements like upholstery and wheel options.
After a couple of months the salesperson will contact you to see if you’re happy with your new car, and let you know about a discount or sale going on. In the future, you’ll be contacted with opportunities to trade in your vehicle and the sales process goes on and on.
How Many Levels Are In The Sales Funnel Process?
As you can see from the example above, there can be many different levels in a sales funnel. A one level funnel is where after a customer buys from you, you move onto the next prospect.
But this a critical error.
It costs 6 to 7 times more to get a new customer than keep an existing one. It makes sense to market to someone who has already purchased one of your products, rather than try to convince new people to buy your services. An existing customer already knows you and your business. If they have received excellent value from you once, they’ll be more prepared to spend money with you again, rather than somebody who has never heard of you.
There is no “ideal number” of sales funnel levels. Each business, product and service is different. Just make sure you are continuously providing your prospects and customers opportunities to improve their lives or solve their problems with future purchases from you.
An effective sales funnel can put your business on autopilot and consistently convert leads into customers if you structure it the right way.