What is a Sales Funnel?
A sales funnel is an automated step-by-step process a company or business takes a lead (potential customer) through before the customer makes a purchase.
DIAGRAM OF A SALES FUNNEL
Here are basically 3 types of leads (potential customer) in a sales funnel you must know:
- Cold lead – These are visitors on your post/website. Maybe heard about your product from a commercial, social media or any other marketing platform.
- Warm lead – Those who are considering a purchase of your product.
- Hot lead – Those who have patronize your business regularly. The beauty of hot leads is that, after they buy your 1st product, they continue to buy from you always.
Note — Your sales funnel will direct you on how to interact with your customers or leads differently. Your sales funnel accommodates these 3types of leads and takes them from cold audience to hot audience.
5 Reasons why do you need a sales funnel?
- Long term customer relationship: Your ability to identify and solve your customers’ problems and objections, will make them buy from you over a long period of time. This fosters a long relationship between you and them. Also, they become your long-term referrals.
- Increase conversion rate: Only your specific audience will buy from you at the end of the buyer’s journey because the sales funnel has reduced the number of unwanted audiences.
- Cuts offline marketing expenses: Imagine the amount of money you could have spent on radio, television, flyers, posters, banners. Not forgetting, the loss of energy and waste of time. This can lead to loss of productivity, but the sales funnel principles are easy to learn, apply and make money.
- Gives you an edge if you’re a newbie entrepreneur: Most newbie come up with fantastic business ideas, but the business falls after 5yrs of startup. It might even have failed in the first year according to Dan Lok.
- Best lead generating tool: It’s used by every entrepreneur, digital businesses, businesses all use the lead generating tool. It rakes in millions and millions of revenue every month or year.