Entrepreneurship

What is a sales funnel

What is a sales funnel

Video: What is a Sales Funnel? And How To Create One that Actually Makes Money 2024, July

Video: What is a Sales Funnel? And How To Create One that Actually Makes Money 2024, July
Anonim

The car sales funnel is a rather old technology, but the broad masses of Russian entrepreneurs have only recently opened their eyes to it. Many even built such systems, but there was no term as such. Many agencies parasitize on this interest, offering the construction of funnels for 200 and even 300 thousand rubles. Most entrepreneurs can build their car funnel on their own and for free.

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Many entrepreneurs find the sales funnel a little complicated. But there really is no rocket science. Almost any marketing activity of a company has a reach - an audience learning about a product or brand. This is the upper, entrance, part of the funnel - the entrance. Some of these people make a purchase - this is the exit or the narrow (bottom) side of the funnel. There are intermediate stages - they depend on the mechanism of interaction with the audience. With each step, potential buyers are becoming smaller. The geometry of this scheme resembles a funnel - an uneven cone. Let's see an example:

  • 1000 people are switching from advertising in Direct to landing.

  • 700 people looked at the landing page of the offer.

  • 200 people left a request for a call back.

  • 100 people have requested additional information or a price list.

  • 20 people made a deal.

The ratio of the upper quantity (share coverage) and lower (sales) is the conversion of the funnel and the main KPI of this work. The higher the conversion, the better you work. In the example, the conversion is only 2%. This is a fairly average indicator, most funnels give much greater results, but 2-3% can be considered a certain norm for direct-landing-order bundles.

In fact, there has been an understanding of sales through funnels for several decades. This principle is clear even to the most inexperienced advertisers. It can be reduced to the formula "the more people learn about a product, the more sales there will be." Marketing throws more and more contacts into the furnace, the sales department issues more checks. The efficiency of such work is low, but it is. The common phrase that “if you were sent 100 times, call the 101st” is just about that.

A more systematic approach to organizing car funnels (about the prefix "auto") allowed entrepreneurs not to lose people who fell out of a simple funnel, but immediately send them to a new funnel, and to a new circle. The more complicated the funnel system, the more you can “squeeze” out of the incoming stream of contacts with the target audience. Traveling through an endless system of funnels, the contact is "heated" - the likelihood that sooner or later he will make a purchase is constantly growing. In a steep funnel, interest losses are more likely to be associated with poor understanding of the input audience than with poor conversion to sales. That is, those who never bought are simply not your customers.

Want an example?

Imagine that you tried a hundred times to feed your little son with semolina. Three times he ate it himself. The remaining 97 plates had to be given to the dog. That's how sales work for most of your competitors. Yes, probably with you.

Now let's try to send the child to the system of auto-funnels.

  1. First, we tell the child the story that porridge helps to become strong - this will help several times. Then the offspring will figure out your cunning plan and again go into failure.

  2. Then we poke the next funnel and scare my son with my grandmother - she swears, gets upset, cries. Several more bowls of semolina leave.

  3. In the third funnel, add some raspberry jam to the porridge, our sales will jump again.

  4. Now let's try honey.

  5. And nuts.

  6. And candied fruit.

  7. And now a spoon for mom, for dad, for the hamster and for all the toy hares.

  8. Have you tried the truck? Try for the truck. He cannot go without porridge.

What is the outcome? Bad option - only a few bowls of hated porridge will remain. The good one is that the child begins to ask for supplements all the time and feeds the little sister with porridge, and he also brings friends. Sales are breaking, dad is happy. If a child starts asking for porridge every day, these are recurring payments - aerobatics.

Talked about conversions at 2-3%? What do you think can be removed from the sales funnel?

Have you seen a funnel with 72 percent? And records will grow. So far, the leaders in the information business, but also commodity funnels, have been pumped to previously unattainable levels.

And now a provocative question.

How will your business income change if, instead of 2-3%, you start doing 20-30 - ten times more? It will increase exactly ten times. This is ten times more customers, ten times more sales. Even more, because with the growth of sales the cost almost always drops.

How much does it cost to create a car funnel?

You are probably ready to give as much money as you like, right? Keep them for yourself. The funnel can be built independently. A completely good specialist or agency will take on 50-70 thousand. As a rule, you can put the solution to the problem in 150k. Offer more expensive - most likely overpay. It is logical to try to come up with everything yourself (there are enough examples and tools now), and then ask the agency to finalize or improve.

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