Understanding the Sales Funnel
The main goal of marketing is to get potential customers into a sales funnel. This funnel is designed to convert potential customers into leads, convert those leads into prospects, and then close those prospects to generate sales.
There are different tools that are used in each step of the sales funnel:
Awareness: Advertising, SEO, Blogging, Events, Promotions, etc. are used to raise awareness and to generate traffic. This is all about developing a brand that has authority in the industry and strong brand awareness.
Leads: Special landing pages, free opt-in offers, and lead magnets are used to generate leads. Leads are people that are interested in the information you offer to help them solve their problem. They are not yet interested in your product or service but they may be open to hearing about it more in the future.
Prospects: Leads turn into prospects when they begin to ask questions about your product or service. They begin to actively consider using your product or service to solve their problem. Lead Nurturing is used to turn leads into prospects. This is done using email marketing and other free offers (like a product trial).
Sales: Closing a sale is the next goal. This is getting the prospect to actually place the order and pay for the product/ service. You need to convince them that your product or service is the best to solve their problem and that it is worth the money they are going to spend. Giving them a special offer is a great way to close the sale. Other bonus benefits and money back guarantees could also be included to help them overcome objections they may have and cause them to choose your product or service.
Repeat purchases (Loyalty): Finally, the goal is to keep customers coming back to purchase again and again. This is done through good customer service, loyalty programmes, VIP memberships, and discounts on new products and services.