Understanding the Sales Funnel to Grow Your Business!
In this article, we’ll go over the fundamentals of the sales funnel, and how it works in today’s digital age. We’ll focus on step-by-step tactics that you can use to build a strong marketing foundation and implement it into your business. Understanding the fundamentals of this will help grow your business.
Now coming from a non-marketing background, it was only in my 3rd year working at a social media agency that I was introduced to the sales funnel by a business advisor to one of our clients. However, I started to understand the basics of marketing with the picture that the funnel provides only 2 years after this intro. It is a very simple representation of how the marketing is going. Now I see this funnel everywhere, be it Google Analytics, FB Ads, TV Ads, it’s everywhere. So what exactly is it?
The Fundamentals of the Sales Funnel
The sales funnel defines the journey that the customers follow when they first interact with your product or service, and again each time they purchase from you.
It’s the process of turning strangers into customers. The sales funnel is a way of looking at how people go from not knowing anything about your company to buying from you. It is made up of 3 stages – the top, middle, and bottom.
Top of the Funnel (TOFU): This is when people first become aware of your brand. They might see an ad on Facebook or a tweet from you, but they’re not ready to buy yet. They just want to learn more about what you do and how it could be relevant to them.
Middle of the Funnel (MOFU): People who are MOFU are learning about how your product or service can solve their problems. They understand that you exist, but they need more convincing before they’ll spend money with you.
Bottom of the Funnel (BOFU): These people are ready to buy! They know that your product or service will help them feel better or improve their lives in some way, and they’re going to pull out their wallets and pay for it.
Sales funnels can be much more complex than this, with tons of different stages and steps.
Every marketing activities are a part of this funnel in some way. Are you having a lesser number of customers buying your validated product? Then you may have to look at the TOFU activities and improve brand awareness.
Grow Your Business with the Sales Funnel
Here are some of the benefits of the funnel –
- It helps you understand how your overall marketing is working.
- To measure each and everything. Quantifying all your efforts.
- To identify at what stage you are losing customers or leads.
- Helps you forecast your growth.
TCD runs on the basic principle of this funnel. It is used at a macro level and micro level. A funnel can exist within a single platform like a website. For instance, clickfunnels.com is a website where a user gets from the TOFU to BOFU within a system. Driving users to the website is a macro funnel activity done on top of all this with various marketing channels.
In conclusion, there are a number of ways to use the sales funnel to grow your business. It’s up to you to determine which ones work best for your particular business. Whatever you end up doing, keep in mind that these methods have been used time and time again to launch new businesses and take existing products to the next level. Try them out and see what works for you!
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