What is a Conversion Funnel?
Now, when you start a business, your end goal will always be conversions and more conversions. But what counts as a conversion? That may differ for different businesses. For some, it would be getting the leads to make a purchase on their website or online store. For some, it may be getting them to signup for a trial or to request a demo. And for some, it might be getting them to install a mobile application. Whatever the definition may be, the process of getting them to reach that final step is called a conversion funnel.
Why is it different from a sales funnel, though? A conversion funnel is predominantly online. As in it traces the path that your lead follows online, before he converts, also online. A sales funnel is much longer and requires a salesman’s intervention. A conversion funnel, on the other hand, is built in such a way, that the lead follows it instinctively until they convert.
Stages of a conversion funnel:
The stages of a conversion funnel are very similar to that of a sales funnel:
To give you a clearer glimpse into how each stage works, let me take an example of a customer and see how they pass through the entire sales funnel.
I am going to take my own example. So, the thing is, I love books, I love Harry Potter and I love Christmas! No kidding, these are three of my most favorite things. Imagine if someone offered them all to me? I’d lap it up of course. So let’s see how this story goes, shall we?
It all started on one of those days when I was pointlessly scrolling through my social media feed. When a very attractive ad on Instagram happened to catch my eye.
It spoke of getting books and goodies delivered to my doorstep. And, naturally, the premise intrigued me (especially the prominent positioning of the Harry Potter goodie) and ensured that I remember the brand. Now, I am aware of the brand called ‘The Big Book Box’.
That is what the first step of your sales funnel should be. To let your audience know that your business exists. This is where the role of your marketing team would be the strongest. You need to ensure that your audience is aware of your brand and its many offerings. It’s highly probable that this is the point where many of your prospects are hearing of your business for the first time. So, ensure that your message is eye-catching, especially to your target audience.
Like in the example above, their ad was catchy enough, that I went to their Instagram feed and spent quite a while looking at the images. Now I am pretty aware of this brand and the service that they offer.
Now, this brand kept popping up on my Instagram feed and slowly on Facebook feed as well. Simply because the pictures were pleasing, I loved the intrusion and started to take an interest. In due time, I even started following their Instagram handle, so that I can be updated of the newest boxes that were going out and the goodies that they were selling. I started subscribing to their newsletter as well. Look at the really nice ones they have sent.
This is the stage, where your customer is informed of the offerings that you provide and takes steps to actively follow you. As in my case, they might subscribe to your newsletter, opt to be notified of new offers or products, or start following your social media groups.
You can take advantage of their active interest and educate them on why exactly they need to buy from you. In my case, words like ‘Literary treats’ and ‘Goodies’ stood out to me. Find out what problems your audience is facing and how you can provide a solution. This is will keep them hooked. Send over educational material like blog posts, webinars, white papers, and e-books.
After months of watching them putting up enticing pictures of books of my favorite authors and such pretty literary goodies, I harbored the strong desire to purchase a box for myself. But, I kept putting it off as I thought it was too pricey. Until they started sending me discounts and coupons.
This is the stage in which your prospects will start showing signs that they want to make a purchase from you. You can monitor their online behavior and start sending relevant emails in the same way as The Big Book Box did. You can even give them time-bound offers that will prompt them to buy from you immediately.
Get yourself a good tool that can track your lead’s online browsing pattern and figure out where their interests lie. You can then assign scores to them and then keep pushing dynamic discounts and offers through the tool. This way your entire process will be automated. You can then also track their response to your emails and further modify your offerings.
Armed with information on the books and goodies that are arriving in the box, and with the coupon codes, I finally took action and made the purchase. I subscribed and bought my own Book Box. Finally! I have officially become their customer.
This is probably your most important phase of interaction with your lead as they transform to being a paid customer of your service. You can expect all the transactional process to take place in this stage. This could be things such as writing invoices, delivering the product/service, installation if needed, or any sort of instruction.
Now, my interaction with The Big Book Box did not end with just one box. With Christmas fast approaching, they have been promoting a Secret Santa for their subscribers. And of course, I joined. In fact, I am so happy with the books and goodies they send, that I have made the brand pretty popular within my circle of friends. I have become a loyal fan and repeatedly purchasing from them, along with becoming a brand ambassador!
This is how businesses should strive to stay relevant by encouraging your customers to repeatedly purchase from you and encourage them to also recommend you to their peers. This way you will ensure that you get new business at the lowest cost and with the effective marketing means, i.e, word of mouth.
(Disclaimer: The above article is not a promotion for “The Big Book Box”, but rather a happy customer using a personal experience to drive a point home)
So this is how your conversion funnel works. When you build a funnel, no matter what kind it may be, you always need to ensure that you have an appropriate tool to track the flow of leads down the funnel. If you are looking for something that may help you, give LeadSquared a try!