Which is the best sales funnel software
Potential customers who do not yet know your brand need a completely different approach than people who have been considering buying your product for a long time. But how do you deal with the different requirements - especially in the online area? The answer is that Sales funnel. It's an effective tool for streamlining the various sections of your sales process.
We'll show you what's up with that Sales funnel is about how you can use it effectively in your company and what the Customer journey has to do with it.
What is a "Sales funnel“?
With aSales funnel (German: sales or sales funnel) the different levels of a sales process can be mapped qualitatively and quantitatively. So offers the Sales funnel the possibility of following the path from the first customer contact to a successful deal through selected key figures.
A Sales funnel can be visualized as follows, for example, the funnel shape gives the concept its name:
All those interested in a product or service offer first enter the funnel at the top of the wide opening. The size of the funnel decreases towards the bottom and consists of paying buyers in the last stage.
Though a Sales funnel does not work without wastage, it still offers numerous advantages for marketers and salespeople:
- Clear list
A sales funnel provides a clear overview of the individual steps in the sales chain. It shows which touchpoints are on the way to a successful business deal.
- Measurable key figures
The clear layout of the funnel makes it possible to measure changes in the individual phases using selected key figures. In this way, risks and potentials along the sales process can be identified at an early stage.
- Sales forecasts
The key figures for the sales funnel give you a forecast for a possible sales development in a specified period of time. With the forecast, you can take countermeasures in good time in the event of a negative development.
With a clearly established Sales funnel optimize your marketing and sales processes. And these changes ultimately lead to increased sales and a higher one Customer Lifetime Value (CLV) emerged.
What is a "Lead“?
ALead is a person who has shown interest in a company's product or service by submitting their contact details when filling out a form or in some other way.
What role does the customer journey play?
In connection with the Sales funnel also plays the Customer journey a role. However, it does not represent the contacts between companies and customers from a company perspective, but from a customer perspective. In this way, the other side of sales or marketing is examined in more detail.
The model depicts the path that interested parties go through until they finally become customers. Again Sales funnel it is usually represented graphically as a funnel. In addition, however, there is a kind of base, or an upside-down funnel, which expands again downwards - because what is also important in the customer journey to comes to the purchase.
Image: Chimpify - Customer Journey
The customer journey is generally designed in five phases:
A potential customer recognizes a problem or need, has become aware of your product and is interested in it.
Your potential customer is considering buying the product. He thinks about how well it can solve his problem or satisfy his need.
The person becomes a customer - buys and uses the product.
4) retention (binding)
Your customer is satisfied with the product and may buy it again.
Your customer is so enthusiastic that he tells his environment - colleagues, family or friends - about the product and thus becomes an extension of your product communication.
The customer journey is like a trip not linear, but can be very different. Sometimes it takes longer and sometimes shorter.
On average, customers should have up to seven points of contact with a company before they buy. The customer journey model was developed precisely to understand these points of contact between potential customers on the way to the purchase. So that companies not only understand these, but can also control and optimize them, the Sales funnel developed.
How to develop the sales funnel for your company
If you have yourSales funnel want to consciously build up or optimize, you should first familiarize yourself with the most important terms. To better illustrate the structure, let's take a look at the three areas of a simple sales funnel.
1) Top of Funnel (ToFu)
The top step of the funnel forms the so-called "Top of the Funnel (ToFu)". This area is primarily about addressing a large audience. In the ToFu area, your goal is to establish initial contact with the largest possible number of potential customers.
Selling a product or service is not yet in the foreground in this phase. First and foremost, it applies to that Understand the needs of the target audience. Therefore, you should focus here on marketing initiatives that increase reach and traffic.
2) Middle of the Funnel (MoFu)
In the "Middle of the Funnel (MoFu)“Interested parties are filtered out, which means that the first scattering losses of the funnel occur here. People who are not interested in your offer are excluded from the sales funnel at this point.
The task of marketing and sales is to accompany the remaining interested parties in the sales funnel into the next phase. Therefore, in this area, focus primarily on the Lead generationso that you can build a relationship with the potential customers through the contact details.
3) Bottom of the Funnel (BoFu)
In the "Bottom of the Funnel (BoFu)“After all, it's about converting some of the leads gained into paying customers. Further scatter losses also occur at this point. Because not every lead will decide to buy.
So at the end of the funnel, your focus should be on those Convince leads of your products and services and turn them into customers.
To further optimize the individual stages in the funnel, it is worth taking a look Sales funnel management:
How does sales funnel management work?
In order for the sales funnel to become an effective instrument, continuous controlling is necessary. With good Sales funnel management the entire sales process can be monitored and expressed in numbers. A number of key figures are used here, which enable meaningful forecasts.
Based on your Key figures you can draw valuable conclusions and develop strategies for the sales funnel. A specific sales target can therefore be calculated back to the required number of potential customers in the first stage.
For example, if the conversion rate of a successful deal is one percent, there must be 100 potential customers in order to be able to achieve a sale.
Because of this, it bears good sales funnel management helps to work out crystal clear tasks for marketing and sales.
What are typical sales funnel examples?
The design and complexity of a Sales funnel depends to a large extent on a company's business model. However, the underlying sections of the funnel do not change - ToFu, MoFu and BoFu are an integral part of every funnel.
For a better understanding, let's take a look at the sales funnel using the example of a company website and a shop.
Sales funnel of a company website
The following example illustrates that the sales funnel of a website can be tracked using parameters from online marketing.
1) ToFu - increase traffic
The first step is to drive traffic to the website.
The number of visitors can be increased, for example, through SEO measures, paid advertising campaigns or social media activities.
2) MoFu - convert visitors into leads
During lead generation, some of the website visitors are converted into leads.
Lead generation occurs, for example, when a visitor registers for a newsletter with his or her email address or downloads an e-book.
3) BoFu - Successful deal
At the bottom of a website's sales funnel is a successful deal. Depending on the business model, there are different ways to make a purchase online.
For example, a consumer could choose to purchase a product. Depending on the company's offer, online purchases can be promoted through vouchers, consultations or test versions.
Sales funnel of a retail store
The next example shows that the sales funnel can also be easily reproduced in a shop with physical products.
1) ToFu - attract shop-goers
In this case, the wide opening of the funnel represents the recruited visitors.
Store owners can, for example, place advertisements or decorate the shop window to increase the number of visitors.
2) MoFu - arousing interest in potential customers
Free product samples or solution suggestions from the seller can stimulate the buying interest in some of the visitors.
At this stage, it is important to address shop-goers' problems and questions directly.
3) BoFu - Successful sale
After the reservations of the potential customers have been clarified, the successful conclusion follows.
At this point, some of the shop visitors drop out of the sales funnel as paying customers.
The sales funnel as the basic framework for the sales process
The Sales funnel forms a strategic framework for a functioning sales process. He helps identify sales-dependent potential and Sources of error in a sales chain to uncover them in good time and filter out unqualified customers.
A well-structured sales funnel with optimized touchpoints can therefore not only ensure increased sales, but also increase customer lifetime value in the long term by including the phases after the purchase.
Header image: Visual Generation / iStock / Getty Images Plus
Originally published April 6, 2020, updated 06 April 2020
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