Using Sales Funnels as an Effective Tool for Growing Your Business
An individual or company starts a business with one primary goal; to provide goods and services and as a result make money. Making money for the business is only possible when the business makes sales. It can be simply put that sales are what define business growth, because without making sales your business is as good as non-existent.
What then are sales funnels?
Sales funnels are plans or strategies of creating customers by making them aware of your business and what you do, and thereafter convincing them to make purchases. They derive the name from their shape, an inverted pyramid which is wide at the top and gets narrower as the length goes down. They give you a way to visually measure the events that happen before a customer can make a purchase.
Who is featured on sales funnels and where you would use them?
The top of the sales funnels features a great number of people who are aware of the existence of your company. They have certain qualifications that would make them become your customers, for instance if you sell baby clothes, someone who has a child is a qualified lead. A huge number of leads will bring you more prospects.
The middle part of the funnel is composed of prospects, people who have had some form of contact with your company and like what they saw. The higher the number of prospects you have, the higher the number of customers.
The bottom part of the funnel has customers, people who actually make a purchase, either single or repeated purchases.
What do sales funnels do?
- Sales funnels are supposed to make your customer acquisition easier, by helping you avoid losing potential customers. It works by making your prospective customers aware of your existence. Depending on the type of your business you have several ways you can do this. You can choose to advertise through social networks, radio, print media or even word of mouth.
- Sales funnels nurture your prospects, by making them see how your product works, and why they need to have it. Promoting your sales is one way you can do this.
Pros and cons of using sales funnels:
If properly executed sales funnels will help you to grow your business by increasing sales. They tend to bring in highly targeted customers who are more likely to buy from you. They also let your potential customers benefit from using your products.
On the other hand if the execution is poor, your potential customers might end up choosing to deal with your competitor over you after finding that what they were led to is not what you are actually offering. Also, sales funnels tend to lock out other people who would have made a purchase out of pure interest and not a predetermined need.