How effective are purchase funnels

Sales funnel: this is how you turn prospects into customers

You have probably come across the term "sales funnel" before. And you will probably already benefit from the so-called purchase funnel, even if you are not (yet) consciously using it Gaining customers. No matter what this model looks like, it is part of the sales funnel. So that you can soon use it consciously and convert prospects into new customers with ease, we'll show you everything you know about the practical use of the purchase funnel have to.

What is a sales funnel?

Specifically, you can imagine the funnel like a holey funnel that you fill with water. Lots of water flows in at the top. However, fluid is lost on the way down. Instead of the water, you now use leads or contacts who are of interest to you as potential customers. While some splash happily through the funnel, others jump off. So you lose prospects. This is completely normal, because in the end, of course, not everyone will buy your product. Only a small proportion of the contacts that you initially filled in the funnel decide to buy. In short: only prospects that you can really convince on their way through the funnel will turn into customers.

Sales Funnel: What is a Customer Journey?

This path that your customers go through is known as the customer journey. Accordingly, your goal should be to make the so-called customer journey as convincing as possible so that as many buyers as possible remain at the end of the sales funnel. The customer journey can be divided into five phases that are guaranteed to sound familiar:

1. Awareness

Your prospects have a problem that they cannot solve on their own. This awareness creates a need. Now you come into play by offering the optimal solution to the problem.

2. Consideration

The interested parties consider how they can best solve the problem and what options and alternatives there are. To pick her up perfectly at this point, you need to think about how best to meet her need for a solution. After all, you want to avoid customers choosing your competitors or competitors.

3. Conversion

You have convinced the prospects and they decide to buy from you. This is where things get a little more complicated, because converting doesn't necessarily mean buying. Depending on how you define the conversion, it can also stand for leaving contact details (leads), newsletter registrations or similar actions.

In these cases, the sales funnel would widen somewhat, because the actual purchase would only come a few steps later. As an example, we are referring to an example in which the first conversion is already a purchase. This is the case, for example, in online shops. The interested parties buy your solution and thus become customers.

4. Retention

If your customers are satisfied, they usually buy a second time. At this point, it is important to maintain the relationship so that you stay in the minds of your customers in the long term.

5. Advocacy

If you have really impressed your customers, then ideally they will recommend you to their friends, colleagues and acquaintances. Great, it couldn't be better! Be sure to have a look at our magazine article "Recommendation marketing: This is how acquisition becomes a sure-fire success".

Importance for your sales funnel

What does the customer journey mean for your sales funnel as a self-employed person or entrepreneur? That you can prepare yourself for a long, wild journey of your customers from time to time. Because if you are looking for a solution, you usually do not choose the first option. Instead, he ponders and rethinks various options, weighs up and compares. He obtains several offers and only makes a decision after careful consideration. A customer journey is not linear, but requires a lot of sensitivity, sales skills and points of contact with potential customers from you as an entrepreneur. On average, there are seven contacts that are necessary for a prospect to become a buyer.

Advantages of the sales funnel

Is all the effort worth it? Indeed, it does, because the advantages of a strategic funnel structure are immense. If you optimize the process, this leads to better efficiency and higher customer lifetime value. So not only do you get more customers, but you also earn more money from every single customer. You also benefit from the measurability: You know in which phases you are particularly successful and you know your numbers. This in turn allows you to make forecasts about future sales and you have better planning security.

Creation of a sales funnel

You can already create a simple funnel by dividing potential customers into three levels:

1. Website visitors

Attract new prospects with good content so that they inevitably land on your website.

2. Contacts (leads)

Now collect the contact details of your visitors, for example their email addresses. This works particularly well if you offer free e-books or newsletters, for example. Make sure to use the double opt-in procedure to obtain your consent to the processing of personal data.

3. Customers

Sample your contacts by email with good content, so that in the end they buy your solution and thus become customers.

Of course, there are also more complex funnels that contain many more intermediate steps. For starters, however, we recommend that you don't make it any more complicated than necessary. If your potential customers or your product or service require further intermediate steps, you can of course add them later at any time if necessary.

Conclusion on the sales funnel

Ultimately, a funnel represents the classic buying process. The more strategically you go about it, the higher the chance that you will achieve success right from the start. As with many other marketing activities, however, the sales funnel also means: test, test, test. Guide potential customers from one phase to the next and offer the perfect solution to their problem. In this way you are guaranteed to transform interested parties into new customers within a short time. We wish you all the best!