Sales funnels are all the rage these days, because they simply work. They can turn a losing advertising campaign into a massive winner, with some companies reporting up to 1,500% returns from their “breakeven” funnels.
In other words, they’ve taken an advertising campaign that was designed to break even, and turned it into a 1,500% ROI for their business. That’s huge, and showcases the power of having a well designed funnel as part of your company’s advertising campaign.
If you’re not utilizing a sales funnel in your business, you’re leaving serious profits on the table. Putting one together comes down to 5 simple steps that are easy to implement.
Step #1: Use a low-cost “tripwire” offer.
The first thing you need to do with your funnel is recoup the costs of your advertising. This is the “breakeven” portion of your funnel, and the first step your new customers are going to see after visiting your site from an advertisement.
There are a few steps you need to take to determine the best type of offer to use as your tripwire.
First, it needs to be a low barrier to entry — meaning the cost has to be low enough for your customers to make a purchase without thinking too much about the cost.
Second, it needs to be something that introduces them to your business, that they actually need, and will position your more expensive products as a no-brainer purchase.
You need to take time with your tripwire offer and make sure it puts your best foot forward. This is your one chance to earn back the money you’ve spent on advertising, while also converting visitors into customers and giving them a taste of what’s to come if they continue to do business with your company.
Mobile marketing and online store concept flat icons. Full circle of online-shopping with mail menu of wide range products, product research, basket, pay per click, call center, delivery.
Step #2: Introduce your core offer.
After you’ve converted your visitor into a paying customer, it’s time to start introducing them to the rest of your business. By now, you should have one offer, product, or service that is already generating a profit for you. This is going to be your “core offer” and what you need to start working on getting in front of your new lower paying customers.
The best ways to introduce your core offer is directly after the customers have purchased your tripwire, and by following up with them through email. This requires you to have your sales funnel tied into a CRM or email delivery service like GetResponse, ActiveCampaign, ConvertKit, or Infusionsoft.
Once your customers have purchased the tripwire offer, they’ll trigger a new sequence of emails that starts promoting your core offer. You’ll start seeing an uptick in sales by redirecting visitors to your core offer’s sales page as soon as they purchase the tripwire.
Maximizing your sales from this portion of the funnel will come from your autoresponder series, though. In your autoresponder emails, you want to showcase the features and benefits of your core offer, so you can convert a large portion of your new customers into buyers of your core offer.
Step #3: Utilize a higher ticket “upsell”.
Now it’s time to really make some money. While your tripwire and core offers are lower in price, and accessible to the masses, you’re going to have customers who want even more from your business. They’re also willing to pay a higher price for the product, service, or experience.
This is where your “upsell” comes into play. The upsell should be priced higher than your core offer, and include ways for your customers to get even more benefit from the product or service they’ve just purchased.
On average, you’re going to have a much lower conversion rate on your upsell than you do with your tripwire and core offer, but it’s designed specifically for a smaller portion of customers. The customers who already know what it’s like to do business with you, and need more from you — whatever that need may be.
Step #4: Implement a “profit maximizer”.
The final step of most sales funnels is called the “profit maximizer”, and as the name implies, it’s designed to increase the amount of profits you see on backend sales from your earlier products or services.
The profit maximizer is generally your highest priced item, so it’s going to appeal to a smaller portion of your customer base overall.
Having a well designed funnel, though, you’ll be able to convert your new visitors into a customer, and then guide them down the path to your highest ticket product. Each step of the way you’ll lose a few more but, overall, you’ll single out the clients who want everything your business has to offer, and are willing to pay the most for it.
Step #5: Follow up relentlessly.
The key to moving customers through your sales funnel is to make sure you’re delivering the right message, at the right time, and that you’re consistently following up with them.
The last thing you want to do is send your tripwire promotional emails to customers who have already purchased your tripwire offer. Likewise, you also don’t want to be sending your profit maximizer email series to customers who haven’t even purchased your core offer yet.
There is a fine balance you need to follow, and make sure that your funnel is well thought out, and designed properly to appeal to customers at all levels. If you get it right, you can turn a losing advertising campaign into a massive winner.
Every business is different, so it’s hard to tell you specifically how to structure your funnel. One thing remains true across every business, especially businesses using online advertising to generate new clients — sales funnels simply work.
A good, reputable web design agency is capable of pulling together a funnel for you, as long as you have an offering that your customers are looking for, and can splinter it off into the 5 different steps we’ve laid out for you here.
Influencer marketing is a great way to reach your target audience, get exposure on different platforms and increase your sales.
Good prices are another way to increase your sales.
Prisync, with its online price tracking software, provides you with a head start by monitoring your competitors’ price activities all over the worlds and 24/7!
NOTE: You can now share your voice in our blog. Prisync Blog now accepts guest blog posts and you can see the guidelines here. If you are already writing on ecommerce, or thinking of it, just reach us out!