#090: What Is A Sales Funnel? (And Why Your Small Business Needs One)

Show Notes

Having a website is necessary for your business to let people know what you offer. But a great website is not a sales strategy. How you relate to your prospective buyer IS.  

The decision-making process is more of a continuum than a single event, and it includes varying levels of awareness about the prospect’s problem as well as your solution. 

Your job is to meet prospects where they’re at in the process, and helpfully guide them to the ultimate decision buy. 
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Introducing the sales funnel. 

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In This Episode You’ll Learn 

• Several ways people might come across your website based on where they’re at in the buyer’s journey–as long as you have the right content for them to find. 
• The main thing a sales funnel does do – and what it does NOT do.
• The distinct differences between the top, middle and bottom of the funnel – and how to fine tune your marketing to people at each level.
• How a sales funnel helps you learn about your prospects so you can serve them better.

Key points Lori and Nola are sharing in this episode:

(04:54:39) What, exactly, a sales funnel is and how it can generate not only sales, but many more desired actions.
(07:15.25) What a sales funnel can give you in terms of customer intel. 
(08:53:30) The kind of information people at the top of the funnel are seeking and why.
(11:11.25) What a prospective buyer is evaluating when they’ve arrived (or entered) at the middle of the funnel, what they’re trying to accomplish – and things you can provide to assist in their quest.
(13:07.97) Tactics to raise confidence in the minds of buyers at the bottom of the funnel, and lower any barriers to their purchasing your product or service.

Resources 

You can subscribe to Lori and Nola's show, (we love you and want to make it easy) on Apple Podcasts, Spotify, Audible, Google Podcasts, Stitcher, or wherever you listen to podcasts.
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ConvertKit: Our #1 Favorite Email Marketing Platform 
(This is an affiliate link)

Transcript

[00:00:00] Lori: You may have started your business for specific reason. And now that you did, it's clear that working on and in your business are two entirely different stories. In order for your business to prosper, you need sales. So how do you turn perspective window shoppers into credit card droppers? Stay tuned friends because in this episode, we're talking sales funnels. What they are, how they work and why your small business needs one.

Announcer: You're listening to the Sticky Brand Lab podcast, where time strapped professionals like you learn how to create a business you love in as little as three hours a week.

[00:00:40] Nola: Every business has a sales funnel. Even if you, the business owner, isn't aware of it. And that's the problem. We're guessing that like many entrepreneurs, you think of your website as the process that will generate sales. And while your website might be packed with information and list your products and services, it's not likely to actually drive sales. Why? Because your website and your sales funnel take prospective customers on two very different and highly important journeys. And in this episode, we'll be sharing why that's important and tips for integrating a sales funnel into your sales and marketing strategy.

[00:01:18] Lori: Can you have a website without a funnel? Yes, and. And our And is a very big And.

[00:01:27] Nola: That's very Dr. Seuss-esque.

[00:01:30] Lori: It is kind of. Especially when trying to clarify why your website and your sales funnel do two different things for your business, and your potential customers. So Nola, before I ask you a quiz-like question, let me ask you this. Would you consider doing business with a person or a storefront that didn't have a website?

[00:01:54] Nola: That would be a trick question for somebody who lives in the country where possibly one person provides any single service and therefore doesn't need a website because everybody knows that person is the one who you can go to.

[00:02:07] Lori: Good point.

[00:02:10] Nola: However, if that person with no website has a competitor that does have a website, I will definitely consider the competitor first. As long as that competitor has fairly decent reviews.

[00:02:23] Lori: I'm there with you.

[00:02:24] Nola: Why do you ask?

[00:02:26] Lori: Well, my quiz question is, what would you guess is the percentage of people refusing to do business with a company that doesn't have a website?

[00:02:35] Nola: Well website so legitimizes any kind of business, I would assume it's probably very slim.

[00:02:42] Lori: The studies have found that 30% of consumers wouldn't even consider doing business with a company that didn't have a website.

[00:02:50] Nola: That makes sense. Absolutely. Because think of your website as your number one marketing asset. It's a place where people search for answers to their questions about you and your business. Now their questions might be actual, or they might be unconscious questions. For example, someone might want to know what your business does and the services you provide.

[00:03:09] Lori: Well, that brings up a really good point because I know that when I land on a website for the very first time, if I have like a red flag. I can't even explain. Something in me says, this website does not feel legit, I immediately look for an About page because I want to read who owns this. And I also look at the Contact page because I want to know that there's an address, a phone number for reaching somebody. Now I say that because on our website, we actually don't have an address for reaching us. We have different ways of reaching us, but we have a bunch of ways that somebody coming for the first time, they would see our picture and our About section.
[00:03:58] Nola: Yeah. They can still get to know us.

[00:04:00] Lori: They could contact us exactly on Facebook, on LinkedIn there's ways for them to know that we're people behind our business. So that kind of unconscious, what do you do when something in you feels like there's a red flag.

[00:04:15] Nola: And then consciously start looking on your website for that answer.

[00:04:19] Lori: For the evidence.

[00:04:20] Nola: Right. So another example is they might've landed on one of your blog posts as a result of perhaps an internet search on a specific topic you may have written about. Or, instead of a blog post, they may have found an answer to a search question by going to your FAQ page. The point is your website serves many purposes; it does many things.

[00:04:42] Lori: Exactly. And whereas a sales funnel on the other hand does primarily one thing, it acts as the guide for a prospective client to take a specific action. To help clarify that, we describe a sales funnel as this. As the process that takes a potential customer from initial awareness of your product or services, all the way through to taking a specific action such as making a purchase. Now we said purchase, but really that action can be anything from buying to signing up for a free consultation call, to registering for a webinar, signing up for a newsletter. The point is the possibilities are endless when it comes to sales funnels.

What a funnel doesn't do is provide extraneous information. So, it's not there to talk about your services. It's not there to provide detailed information like an About page would, or your business philosophy or any of those things. That's what a website is for. Now another way to think about it, if you were thinking visually, is imagine that you were on a path. Maybe you were going hiking and at the bottom of the path is a destination that you want to get to. For me and my mindset, I currently have images of walking a path and getting to a pond or a beach front for swimming. Okay. And actually, I have done this kind of path. But the point is, because it was the first time we ever did this route, we parked way at the top of the funnel. Now somebody else more familiar with this location might've parked at a location further down. So when they joined the path, they're coming in kind of midway down. And somebody who lives in the area and goes there all the time, well, they know where to park that takes them furthest down the path, and so they're the closest to that destination. Any of us can join the path at any place or any point, and that's a way to visually think of a sales funnel.

[00:06:57] Nola: And that's very helpful because most people think of a sales funnel as people only go in the top and out the bottom, like flour in the cake, you know,

Well, Lori described the sales funnel from the potential buyer’s perspective. Here's how a sales funnel can benefit you, the business owner. Think of your sales funnel is giving you a bird's eye view of the journey that your customers take from initial awareness to purchase. And ideally, you are able to gather all kinds of data about that journeyers', about your perspective buyers' behavior at many points all throughout that sales funnel. All throughout that journey. Here's just a few things that you'll be able to learn as people move through the sales funnel. For one thing, it can reveal any barriers that might be preventing prospects from converting to buyers. It can also help you see which of your marketing activities are most effective. And at each stage along the buyer's journey. It can also help you identify which of your efforts drive the most results.

[00:08:09] Lori: So you're probably wondering, if you've been listening to Nola's explanation, how does this actually work? Well, we're going to start by giving you some information that should help clarify at least the three areas, top, middle, and bottom, and how they work from a sales perspective and a marketing perspective. In future episodes, we'll give you information that's far more detailed to help you plan out sales funnels or ways that you can market certain areas of your business products or services that you want to focus on. But for now, this is just really an overview.

So to get started, we'll talk about the top of the funnel. From a sales perspective, the prospective buyer or client or customer, they are aware at this point that they have a problem and they're just beginning their search. So here, the information they're interested in is high-level general information. From a marketing perspective, you could create content that would generate leads, for example. The type of information that would work here is usually free things such as an ebook, a free webinar, checklist, videos, how to videos, for example, infographics and even quizzes. The goal is to attract a potential customer while simultaneously increasing awareness about your brand.

[00:09:43] Nola: And something to note, like I had said earlier, you're able to observe that journey. And what's really cool about this is, based on which type of ebook they signed up for, or which checklist they chose, or which quiz they chose to take, you are already learning about that customer. You're learning more and more about them. So, you'll be able to use that information to help navigate them on their own path toward the bottom of the funnel.

[00:10:13] Lori: You know, you bring up a really good point because some email systems have segmentation in there. And this is why like we use convert kit because of the segmentation option. And segmentation means that you deliver the right information at the right time.

[00:10:31] Nola: Right.

[00:10:31] Lori: If you just have a general email list or a general system, you can't segment. So just as a side note, that's why that's so powerful.

[00:10:42] Nola: That's absolutely right. So if somebody chose quiz number three C, then you have an email or a drip of messages and potential journey specifically on that topic. So that's how that works. So, what Laurie just described was the top of the funnel. And, uh, let's talk about the middle of the funnel. People enter the sales funnel at this point, or have moved here from the top. Okay? From a sales perspective, the prospective buyer at the middle of the funnel understands they have a problem and they're considering or evaluating solutions. And we identify this with the stage three or four of the buyer's awareness. Since they're trying to narrow their solutions, this type of prospect is looking for more specific solution-based information. It's no longer high-level general, they're wanting to get specifics and specific solutions. So from a marketing perspective, what you want to provide is valuable information that will help them narrow down their options. These should include items that require a little bit of a commitment, whether that's time or money, because what that does, it helps to kind of solidify that relationship, but just a little bit more. These kinds of things could be a webinar, a mini-course, coaching call, or something like a really robust case study. The goal here is to increase the likelihood that you will be one of two or three brands that they're considering. Especially for a high price item.
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[00:12:17] Lori: And that brings us to the bottom of the funnel. From a sales perspective, your mission at the bottom of the funnel is to stand out from your competition. You want to be the best solution available. So your goal is twofold, really. It's to convert either the prospective buyer into a purchaser. Another way to think about this, depending on how they've come in to your funnel, is to invest in the higher-priced item. This can be more of a long-term solution if you were a coach or consultant. It might be a long-term coaching contract if you sold products or services. You might have a mastermind. You have might have a top-of-the-line hair product. Whatever it is, it's that much more. It's the higher ticket item. The other thing that your goal here is, is to provide a such great experience that you're building customer loyalty and referrals. From a marketing standpoint, the type of content that works here is the things that build credibility and trust. Basically, they reduce the barrier to making that high-priced investment. Here, product reviews, social proof. You know, when you see on a website, "featured on" or "trusted by," and you recognize those big brands, that's social proof. Giving a free trial, limited basis, demos, coupons, act now to get the early bird special. That's a good example. Yes. The goal is to raise the confidence of your client or prospective customer and lower the barrier by delivering a great experience. Happy customers are repeat customers.
So now that you're aware of the power and purpose and difference, your website and your sales funnel can make, we hope it inspires you to get started on creating your first sales funnel. Or your even better sales funnel.

[00:14:28] Nola: Thank you so much for listening to this episode. We hope it makes all the difference in you getting started on your business so you can create your best and most exciting life. If you found the information shared here today helpful, let us know by posting here, where you're listening, or on our Facebook page.

[00:14:45] Lori: Not sure how to turn your idea into a profitable side business? Contact us at stickybrandlab.com/contact. We'd be happy to help you.

[00:14:54] Nola: Be sure to come back next Tuesday and every Tuesday for another informative, inspiring and motivating episode. And remember. Action creates results. So tap into your desire to create a business and brand you love by taking 1% action every day. Small steps, big effects.

[OUT-TAKE]
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So you might have landed on one of your blog posts as we go back. We'll talk about that. No,
[00:15:20] Lori: my page went somewhere else and it was trying to get
[00:15:23] Nola: back. I'm like,
[00:15:27] Lori: oh, wait. That's me. Okay. So that part again.