What is a Funnel?

Introduction:

If you run a business, chances are you have been repeatedly told that you need a mailing list and the best way to create one is by using a funnel.

But what is a funnel and how does one work?

What is a funnel?

A funnel is a sales tool within your marketing, specifically email marketing, strategy that is designed to turn complete strangers into long-term customers and raving fans by channelling them through a process of getting to know, like and trust you, and most importantly, buy from you. Essentially, the funnel is about capturing new leads, nurturing existing leads and building fantastic, strong relationships with your audience.

What is the purpose of a funnel?

The concept of the funnel is that you start out by attracting a large audience of cold leads, perhaps through adverts on social media or search engines.

You will then segment those customers based on how they engage with your messaging or whether they engage at all. Some people will join your newsletter or download your free offer and never even open it.

The idea being that you segment prospects into different groups along the way through their journey so that the bottom level of the funnel will be filled with red-hot leads who are ready, keen, and able to buy from you.

The ultimate purpose of the funnel is to create a list of hot leads who are ready to buy from you repeatedly, increasing their customer lifetime value with each purchase.

What are the aims of a funnel?

Generally, in all marketing activities, we are looking to create 4 main aims, and these are the same with funnels:

·      Awareness

·      Interest

·      Desire

·      Action

Awareness is where the prospect first becomes aware of you and your offerings through any means, such as advertising, word of mouth, social media, meeting you in person etc. How do you make people aware of your products and services?

Interest is where your prospect is sufficiently interested in your offering to conduct further research on your products and services. How do you pique their interest?

Desire is the stage where the prospect has moved from liking your offering, to wanting your offering. These are now warm leads. How do you engage with your prospects to make them want your product?

Action is the lead responding to a call to action that you have placed on them, for example the “Download Now” button on the advert for your lead magnet download. They may download a lead magnet or sign up for a call, with the intention of deciding about the best solution to their problem. As soon as they have signed up for your freebie, they have entered your funnel and you get to determine their path from here on out based on their interaction with your content.

Types of funnels

There are many types of funnels that you can setup, based on the activity of your prospects, in fact you could probably set up hundreds of funnels for every reason you can think of.

Delivery funnel

Purpose: This is a funnel sequence that begins the minute your prospect/ customer orders something from you. It is likely that the delivery funnel with be different based on whether the item was free or paid for.

Nurture Sequence

Purpose: Once a delivery sequence is complete, your prospect/ customer will likely be segmented into a nurture sequence, with a view to nurturing them to buy from you.  

Upsell

Purpose: An upsell sequence can start within the delivery funnel, usually on the thank-you page, where you would offer the client an additional, paid for product to purchase at a one-off, never to be repeated discount price, before they leave the page.

Down sell

Purpose: A down sell sequence can happen during the upsell sequence, where if the client rejects the upsell offer, you offer them a lower ticket item instead.  

Affiliate programme

Purpose: You can create a funnel to advertise a new affiliate or ambassador programme that you are launching, that would reward your list for referring their friends and peers to your programmes.

Purchase Nurture

Purpose: A purchase nurture sequence can be activated after the prospect/ customer buys/ signs up for an item or a call that it not for immediate delivery. For example, if the prospect/ customer has signed up for a programme, a course or a call that takes place in the future, you would add them to a purchase nurture to keep them interest and ‘warm’ until the launch date.

Waiting List

Purpose: You can add people to a waiting list sequence that will keep them informed of the launch date of a product or service, but could also provide them with behind the scenes “sneak peaks” of your process.

Newsletter

Purpose: A newsletter funnel runs side by side with other funnels but can also be stand alone. Your prospect would usually be segmented into the newsletter funnel after completing a nurture sequence. The newsletter would contain links to products and services in your funnels that they may be interested in and should they click on the link, they will then be segmented into a related funnel.

Product Launch

Purpose: This funnel would usually include all those who have entered the newsletter funnel and would include information relating to your new products and services, that they may be interested in and should they click on the link, they will then be segmented into a related funnel.

Abandoned Cart

Purpose: Should your customer add and item to cart and then abandon the purchase, you can add them to a funnel that reminds them of the item in their cart and the incomplete purchase, or it could ask them why they didn’t complete the purchase. This gives you the option of overcoming objections. Obviously, for this to work, the customer will need to be logged into your platform so that you can track activity.

Special Event

Purpose: These are funnels setup specifically for things like Valentine's Day, Mother's Day, Father Day, Summer, Halloween, Black Friday, Thanksgiving, Christmas and other holidays where you may want to offer special deals and discounts.

Sale

Purpose: These are funnels setup specifically for offering special deals and discounts, for example an end of print run sale.

List Removal

Purpose: This funnel can be quite effective, it is designed to ask the recipient if they would like to remain on your list as they have been so inactive of late. This can serve to remind them of your products and services, triggering them to buy. Or it could lead to you removing them from a list they weren’t interacting with anyway. Win-win.

Your Birthday

Purpose: This is a funnel setup specifically for your birthday, you may want to offer special deals and discounts in celebration of your birthday people who click on the links in the emails are then segmented into appropriate mailing lists.

What does an example funnel look like?

A very basic delivery funnel could look like this:

A slightly more complex funnel with one-time offers and an email sequence leading to an offer, could look like this:

Conclusion

Look I know these things can seem complicated and overwhelming, but that's why I am here. I can help you to set up and build your funnels, amongst other things. I am Coach Vicki and I am a Tech Genie, here to help you focus on the work you love, not on the tech you don't. Book a slot, let's chat about your needs.