The goal of a business in using marketing strategies is to increase their customer base in order to have more consumers for their products or services. By doing so they are able to create more revenue for themselves without having to do too much work since the customers are already there, making it easier for them when the time comes that they need to mark up prices or introduce new products. The continuous process of increasing revenue in this manner is known as perpetuity in business terms, which means continuing indefinitely in layman’s terms.
One of the ways that businesses do this is by using a marketing funnel, which is used to help them convert more of their potential customers into actual paying consumers.
What are marketing funnels?
Marketing funnels are the process that many businesses use in order to increase revenue through different means. It can be done through either increasing conversions or adding more members for future continuity purposes. A good example of this would be if you had one hundred people who were potential clients but only ten of them decided to buy something from your business. If you wanted more money, then there are several methods you could apply with the members already there; adding new products and services, raising prices, hosting events where they promote voting on future product lines, or even giving them limited-time discounts.
One remarkable software related to marketing funnels is Funnel Scripts, a platform that generates compelling copy or content for your sales or marketing campaigns. While this innovative software costs a small fortune, the pricing for Funnel Scripts is actually reasonable and worth the investment in the long run. You will get long-term cost savings even if its one-time cost is $797 because you will not be paying monthly and you get a full lifetime access license to the software. Moreover, if you have been hiring a copywriter to create sales copy for you, you can eventually let them go once this tool goes to work. This gives you further cost savings and a better prospect of landing a successful sale.
Stages of marketing funnels
A marketing funnel is a typical path that customers take when purchasing a product or service. Typically, your target audience will go through the following stages: Awareness → Consideration → Purchase → Loyalty → Advocacy. Understanding how each of these steps works can help you to optimize your marketing efforts by noting where potential customers are falling out of the conversion process – and taking action to correct it.
Stage 1: Awareness
The first stage is always awareness, where users are introduced to your product or service. It’s often a good idea to start by targeting the centers of influence – influencers and power users who have a high number of connections and can bring their friends into your product early on. This is known as “viral marketing” because it allows you to grow exponentially without spending any money on advertising.
Stage 2: Consideration
Once you’ve gained some initial traction, then it’s time to transition into the second stage (consideration). At this point, the user might be interested in what your company has to offer but not enticed enough to make a purchase. In order to move them along through the funnel, companies will try to provide value. For example, if you sell jewelry, then free shipping or discounts for first-time buyers might be a good way to convince people to take the next step.
Stage 3: Purchase
Most companies will utilize a “touch base” strategy here – following up after the initial contact to further engage. For example, Amazon contacted people who added items to their shopping carts with personalized messages that were tailored to those specific products! By contacting users right before they leave your website without making a purchase, you can help to ensure that they actually end up buying what they intended – rather than leaving your website and later regretting the purchase.
Stage 4: Loyalty
Once people have bought into your product or service, then it’s time to retain them by focusing on engagement and retention tactics. By using things like personalized email campaigns, marketers can connect with users on a personal level and provide more value. This will allow you to gain a deeper understanding of your customer base while strengthening your relationship with them.
Stage 5: Advocacy
The fifth step is about advocacy. Here, companies want to ensure that they’ve made such an amazing product or service that people are not only willing to use it again but also tell their friends. If you’re a B2C company with a referral program, then this step might be an effective way to push you up the ladder of success. It can feed into the next stage (referral) while creating more awareness for your brand.
What’s at the end of the funnel?
Typically, small businesses utilize the five stages as they try to stabilize their business operations. From there, they can move to the sixth and seventh stages: monetization and scaling. Many companies want to test the waters by focusing on monetization. At this point, they will have built up a big enough user base that it’s worth trying out different approaches in order to see what works best. The seventh step is all about scaling, where marketers must implement strategies designed for expansion. This might include things like international expansion, building a stronger brand presence, or implementing other long-term growth plans. In other words, this is when you take your success and run with it – hopefully making enough money to expand even further.
Marketing funnel might seem complicated at first sight, but once you’re able to understand them clearly then everything else will fall into place and eventually become an easy task that can be done by anyone. Just remember that action is better than inaction.