A sales funnel, sometimes referred to as a purchase funnel or a conversion funnel, is a term coined by marketers to describe the journey that customers are guided through from the first contact through to purchase. Sales funnels are divided into three main phases called the top, middle and bottom of funnel. There are many stages of the sales funnel journey within the main three phases, which we will attempt to demystify here for you!
If you'd rather watch my video on this topic (<5min) just click play! If not, keep reading below.
Stages of a Sales Funnel
1. Awareness Stage
The top of the funnel starts with the awareness stage where your customer is just learning about you and your product. This might be the first time they have visited your website from an ad on Google or Facebook, a blog or any other traffic source that you have put in place.
2. Interest Stage
During the interest stage, your customer is aware of their needs and they are actively looking for the solution to their problem. Assuming you have that solution, they are going to enquire further by subscribing, following or liking you.
3. Decision Stage
By this stage your prospect has been made aware of you, they have shown interest in your product and now they are getting ready to make a DECISION! They are looking at your offer in more detail and they are very close to making their purchase.
4. Action Stage
If your customer has made it to this stage then congratulations are in order! They have now successfully reached the bottom of your sales funnel which means they have purchase from you. It is important to note that the journey does not end here. From here you really need to work on your back end strategy which means giving your customer some love and keeping them engaged so they become repeat customers!
How to Get Repeat Customers
Once a sale is made, the most important thing you can do is to implement a solid customer retention strategy. We won't go into great detail, but the three simple ways to get repeat customers outlined below are a great start to maximizing your customer lifetime value.
1. Give Loyal Customers Special Attention
This might be as simple as a Happy Birthday email or perhaps just a quick reminder email about your customer service policy. Customers like to be valued and when you put a personal touch on your customer service, they will stay loyal to your business.
2. Ask for Customer Feedback
Whilst this might open the door for complaints, it is important to reach out to your customers and ask for their feedback on the product or service they have purchased from you. This feedback is invaluable for your business and also shows the customer that you genuinely care about them.
3. Offer Existing Customers a Special Deal
Everyone loves a deal, especially your existing customers. Tailor an offer specifically and exclusively for your existing customers. Firstly, this is "free business" because you already have their details so you just need to send an email campaign to your list. Secondly, your existing customers will feel extremely valued and if your offer is relevant, you're likely to get a high take-up rate on your offer.
Whilst we may have digressed a little here, it is super important to leverage your existing customer list and harness the power of your customer lifetime value. Get your sales funnel working seamlessly with minimal leakage and your long term business will benefit greatly!