Last Updated on September 16, 2024
If you’ve ever worked in sales, you’re probably familiar with the funnel concept. The basic idea is that when someone enters your business through one end of the funnel (for example, by calling or visiting your website), they pass through your sales process and ideally emerge as a customer at the other end. Picture this: if your funnel has no leaks, more potential customers become actual customers, leading to increased sales and revenue. According to HubSpot, businesses prioritizing sales funnels see a 451% increase in qualified leads.
However, most companies don’t use the funnel approach to guide their customer acquisition strategy. Instead of integrating their marketing efforts, they often run separate campaigns that don’t contribute to a unified goal: getting customers into the funnel. Research shows businesses using a cohesive marketing strategy experience a 76% higher conversion rate.
How does the funnel approach work?
The funnel approach is a popular marketing strategy that focuses on customer acquisition. It involves using various methods, such as search engine optimization (SEO), social media, and content marketing, to attract leads and convert them into customers. The funnel approach is used in business and marketing to help you stay focused on customer acquisition, leading to more sales, revenue, and growth for your small business. Companies that excel at lead nurturing generate 50% more sales-ready leads at 33% lower cost.
How to use the funnel approach for your business
To use the funnel approach, you must define the problem before starting a solution. This means that instead of worrying about other people’s goals and how they can help you achieve them, stay focused on your goals. Once you’ve set realistic and achievable fitness goals (for example, “I want to lose 15 pounds in three months”), it’s time to start planning how to achieve those objectives.
Be ambitious but realistic: It’s essential to think big and consider what is realistically possible within a given time frame.
For example, suppose one of your fitness goals is to become an elite athlete who competes in world championships. In that case, this might require more than just three months’ worth of training—but if your goal is improving general health and wellness by running more often or joining an adult sports league, then this may be something that could be accomplished within a few weeks or months depending on how usually you work out during those periods. The same principle applies to sales and marketing.
Step 1. Optimize your website
Optimizing your website is vital because it can help increase your sales, gain more customers, and improve your brand. According to a study by BrightEdge, organic search drives 53% of all website traffic, making SEO a key component of your optimization strategy. Ensure your site is user-friendly, fast, and optimized for search engines.
They are optimizing, which means optimizing for search engines. You want to make sure that when people search for what you offer, they can find you. If you don’t optimize, even if someone finds your business via a search engine (or social media), they might not know what to expect once they click on the link or ad that brought them there. Optimization helps with this because it tells the search engine what kind of content is on each page of your site so that when someone searches for something related to what you sell, they find relevant results that match their needs.
There are lots of ways to optimize: keywords in meta tags, descriptive titles and descriptions, keyword-rich URLs, placement of images, use of alt tags in images, internal linking between pages, etc.,
For example, if I were selling organic dog food online, I would include “dog food” as a keyword in my meta title tag. This would allow me to show up higher than competitors who aren’t optimizing their websites well enough!
Step 2. Capture leads
The second step in the funnel approach is capturing leads. This is the most critical part of your funnel because it’s how you get people to enter your sales process and become aware of what they need. Since most small businesses don’t have a large marketing budget, it’s even more critical to ensure you capture as many leads as possible through various channels. In fact, given that 79% of marketing leads never convert into sales due to a lack of lead nurturing, it’s essential to maximize lead capture through various channels like landing pages, email sign-ups, and social media interactions.
When I say “capture leads,” I mean finding ways for potential customers to provide their information so that you can contact them later with a sales pitch or offer.
For example, suppose someone contacts me via email asking about my services or products without giving me any contact information (like an email address). In that case, it will be difficult for me to follow up with them later on without doing some additional digging into my database first (which takes time).
So, instead of waiting until people contact me directly about my products/services, I try hard because it saves time, and I can build relationships early on before making any sale attempt later down the road when needed.
Step 3. Nurture them with content marketing
Content marketing is a bit of a buzzword, but it’s a vital strategy for nurturing leads. High-quality content like blog posts, videos, and webinars can engage and educate your audience, moving them further down the funnel. According to Demand Metric, content marketing costs 62% less than traditional marketing and generates about three times as many leads.
Content marketing is any content that brings value to your audience. This could include blog posts, videos, tutorials, and live events. To successfully use content marketing in your funnel approach, you need to understand its purpose and how to measure it – especially if you’re using paid ads as part of your funnel strategy!
Here are some examples of content marketing:
- Blog posts that explain the ins and outs of specific products or services (ex,” 10 Things You Need To Know About Our Services”…)
- Videos on YouTube showing how something works (ex: How To Use Our Product”)
- Podcasts discussing topics related to your business (ex: How To Make Money Online With Blogging)
Step 4. Convert them into customers
Once you’ve attracted potential customers, the next step is to convert them into paying customers. Optimizing your conversion process is vital—did you know that reducing friction in the checkout process can boost conversion rates by up to 35%? Make the purchasing experience seamless and straightforward to maximize sales.
This is where you make your money, so it’s crucial to ensure that you have suitable systems and use the right marketing tactics to convert as many people as possible.
Consider what content works best for your audience when improving your conversion rates.
- Are they learning more about a specific aspect of their industry?
- Do they find themselves clicking through videos?
- Or do they respond better when reading something longer-form, like an article or blog post?
The second thing you should consider is how easy it is for people to purchase from you once they see your business’s products or services.
On average, nearly 60% of shoppers abandon their shopping cart at some point during an online shopping experience because too many steps are required before making a purchase (or even before reaching checkout).
Ensure that everything on both sides—from attracting traffic to closing sales—has been streamlined so that each customer encounter is designed efficiently and quickly as a top priority.
The benefits of using a complete funnel approach
A funnel approach can help you stay focused on customer acquisition, leading to more sales, revenue, and business growth. Companies with a well-defined sales funnel report a 28% higher revenue growth than those without one.
The funnel approach is an effective way to focus on customer acquisition. It allows you to determine the most efficient way of acquiring new customers while limiting your spending in other areas.
The first step is to identify all the available marketing channels and then choose one or two that work best for your business at this stage in its life cycle.
This may be social media advertising or cold calling potential clients – whatever works for your company!
Once you have chosen which marketing channel(s) are most appropriate for acquiring new prospects, start measuring where each prospect comes from to see which ones convert into paying customers more frequently than others do.
This information will help guide future decisions about what marketing tactics are best suited to achieving specific goals, such as increasing sales volume or growing brand awareness among consumers who aren’t yet familiar with what makes our brand special.”
The bottom line about the funnel approach and what it could mean for your business
If you have ever wondered how to grow your business and make it more profitable, the funnel approach is for you. It’s easy to implement and requires no additional resources from your team. According to research, businesses implementing a structured sales funnel see a 10% increase in average deal size.
Ready to implement the funnel approach and drive your business growth? Contact Aristo Sourcing today! Our expert team will help you optimize your sales funnel, capture leads, nurture prospects, and convert them into loyal customers. Don’t miss the opportunity to take your business to the next level.
So what are you waiting for? Start using this strategy today!
3 Key Takeaways
Here are the three key takeaways from the article on the funnel approach to customer acquisition:
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Attract leads through website optimization: The first step involves optimizing your website to rank higher in search engine results for relevant keywords. This increases the chances of potential customers finding your business when they search online.
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Capture leads with valuable content: Once visitors arrive at your website, you must capture their contact information. You can do this by offering helpful content such as blog posts, videos, or tutorials in exchange for their email address.
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Convert leads into customers with targeted marketing: Finally, nurture the captured leads with informative content marketing that addresses their needs and interests. This builds trust and positions your business as a solution to their problems. Ultimately, the goal is to convert these leads into paying customers through effective marketing tactics.