A Sales Funnel describes a journey your target audience takes as they become interested in buying something from you. You attract them and guide them through stage by stage, step by step. Converting them from a prospect into your customer.
The funnel shape implies that as you attract your target audience, some people will fall off along the way. And that is OK. What you offer, may not be what they are looking for, at this time.
A basic framework many businesses use, is the AIDA model. Short for Awareness, Interest, Decision, Action. Let me describe each stage.
Awareness
Awareness catches their attention, getting them to ask "What is it?"
For large organisations, this may involve brand positioning. For businesses, to highlight a new product or service. For smaller retail, it may be as simple as "Hey! We just opened in your neighbourhood mall!"
Interest
The Interest stage seeks to bring them closer emotionally. Get them to the place where they say "Oh, I like this - tell me more".
Consumers today have access to a wealth of information at their fingertips. They will do their own research and self-learning towards a solution they want. This means that you will need to position your offering along a path they desire (see Desire Grid - Positioning your Product/Service).
And there are times where your prospects don't know how connect what they want, to what you offer. You will have to help them bridge that.
Decision
The Decision stage helps the prospect favour your product or service offering.
Here, they start comparing feature and functionality. For some, it's about more checkmarks that you provide. For some, you addressed their most important pain point or pleasure goal. And yet others, it's because you are the first to show them the way. And you will have those who decide, simply because it's you.
While the last point is flattering, it's not business scalable. More about this later.
You share content and frameworks to help the prospect through their decision, and lead them into the final stage.
Action
Through the Action stage, the prospect becomes your customer.
If you have guided them well, they will take you on your price. Being human, we like the idea that we made the final choice. So craft an offer that is favourable to both. Two boxes at 20% off. 12 months service at 10-month rate. Offer free customizations. Deals off the next sale. You get the idea.
And then remember to work off buyer's remorse.
For many businesses, the AIDA model is enough to move sales. Savvy businesses will next work on Retention and Referral strategies, so that the flow to the Sales Funnel remains consistent. I'll cover this in a later post.
