by Tanya Ganian
Tuesday, July 2, 2019
(TRANSCRIBED FROM AUDIO)
Today I’m going to cover a simple funnel that is currently very popular online. Lots of online marketers and online coaches and educators use it. But it’s not just for them. It’s versatile enough to apply to all sorts of business owners and service providers.
Now, let’s take a step back ad talk about what a funnel actually is. A funnel, as you already know, is a kitchen tool that is wide at the top and narrow at the bottom that you use to direct either liquids or powders through a small opening at the bottom.
A funnel in marketing or sales terms does the same thing, where at the top of the funnel, at the wide opening, you attract a large group of people with the expectation to funnel them through to an action.
4 Stages of the Funnel
Now I sales, there are 4 steps to a funnel. The widest part on top of the funnel is dedicated to reaching as many people as possible in order to create awareness of your business or your product or service.
Those who become aware and are interested, move down the funnel to the second stage where they show interest by either signing up to downloading something or doing more research.
As we keep going down the funnel of those who are interested, we reach a smaller percentage of people who will know show desire in your product or service. These are your prospects.
And of course of those prospects, an even smaller percentage will take action and become customers.
The success rate of an online funnel is general 1 to 3 %. This means that when you cast a wide net and grab the attention of your market potential, you can expect about 1 to 3% to take final action as you guide them down the funnel to becoming a customer.
Now the 4 stages of the purchase funnel have to be represented whenever you try to sell anything online. Whether it’s a digital course or a necklace on Etsy.
The potential customer at the top of the funnel, who has just been made aware of your company, is not in the same mindset as the customer who is ready to take action and therefore is not ready to purchase anything yet.
This is why so many people fail to sell on social media or don’t reach the return on their investments when they invest in online marketing.
They go straight to the bottom of the funnel and try to sell to customers who may have never heard of them before that one sales pitch.
When we compare it to a traditional brick and mortar store when a customer walks into the store, they are not at the bottom of the funnel stage, they are not ready to buy. But they’re also not at the awareness stage. They’re somewhere in the middle, between the interest stage and the desire stage.
Cast a Wide Net
When you buy an ad on social media, you have to cast a wide net and bring awareness to your company first and then advertise directly to those who show interest and become prospects.
So buying a Facebook ad that targets millions of people and trying to sell them a book, for example, will not be effective. But buying a Facebook ad that targets millions of people who have already shown interest in your business by either joining a challenge or download a pdf or subscribing to your podcast, is more likely to yield higher results and a better ROI.
So let’s go through the 4 stages of the Funnel and how you can set up an online funnel that will turn a potential market into a buying customer.
Now don’t worry, you can find this example on tanyganian.com/20? And download the step by step guide of the 4 stages and how to create a funnel that addresses all four stages.
So let’s tackle the first stage of the funnel: the awareness funnel which is meant to reach your full market potential.
During this phase, your job is to create awareness about your business and separate the ones who show interest by those who will never become customers.
So the first thing you will do is create a Facebook ad or Instagram ad and give something away for free. Something related to your business of course. Don’t give away a juice mixer if you’re a web designer. IF you’re a web designer, you can give away a free audit of their website. If you’re an interior designer, you can giveaway free consultation, or even a pdf guide book of the 4 essential design tips they can download. If you’re a cook, you can give away a download recipe book with your 5 best recipes.
Create a Valuable Offer
Remember to make the offer value. The more valuable a free offer is, the more it implies that the paid offer is tenfold more valuable. The less valuable the free offer is to your potential customer, the chances are they will assume the paid offer has the same standards.
Now those who opt into your free giveaway have moved down the funnel to the INTERESTED stage. You have to accept the hard truth that your product will NOT appeal to everyone and even if it does, you cannot and should not target everyone at the same time and in the same way. Target for your niche, and then the ones who are interested will move down the funnel where it’s now your job to create the desire to purchase.
Once they’ve opted into your freebie and in exchange have given you their email address, it’s your opportunity to turn those who are interesting down the funnel and A great way to create a desire to purchase to appeal to their goals and objectives and address their pain points.
You can invite them to a live free webinar or send them a blog post or a podcast that is related to your business, the freebie that they opted into, and the product you will eventually sell.
Now to create the desire to purchase in someone who shows interest in your offer takes practice, talent and has its own full set of formulas. But it will all come down to how well you understand your potential client. What are the main goals? What are they trying to accomplish? What are their biggest objections? What keeps them up at night? The more accurately you can answer these questions, the easier it will be to create the desire to purchase.
Once the desire has been created, the final stage of the sales funnel has been reached and that is the ACTION stage. You can still lose a client here. The process between the desire to purchase and actually purchasing needs to be smooth, simple, and not create any red flags whatsoever. The process needs to go as the prospect expects it to go. Don’t create doubt or uncertainty for any reason.
Many times, I’ve been certain, CERTAIN that I landed a client when in fact I’ve lost them during this phase. Because you're in a race with a bunch of other people and once you see the finish line, once you see the desire to purchase in a prospect, you sort of exhale, you chill out, the pressure is off and you let your guard down, right when you need to cross that finish line. You sort of look back and see the others are miles away, you have nothing to worry about and you miss your mark.
This can happen online as well. From your shopping cart to your confirmation page to your thank you email should be well thought out and tested and then retested and then tested one more time.
IF your funnel isn’t working, I encourage you to reevaluate every step of the funnel. Are you addressing the right mindset of your prospect in each stage? Are you casting a wide enough net in the first stage?
If you only sell 3 products, Is that a failure? It’s not if your net reached 100 people. Make sure your net reaches the correct amount of people in relation to your quota.