How to build and calculate the conversion of a sales funnel?
To run a profitable business, you always need to use all the available tools that really work. Nowadays, every potential buyer has many opportunities and options to buy the desired product. Unless, of course, it is something truly unique. How do you ensure that your product or product will find a buyer, and how do you convince him to buy the product? For example, you can use a tool such as a sales funnel for this. After all, it is one of the best ways to contact a potential client.
Sales Funnel. What is it?
If you are reading this article, you have probably come across this concept before and decided to use a search engine to learn more about it. Let's look at how a sales funnel works, how to create a sales funnel, and more to learn about this approach to customer acquisition.
A sales funnel is a system that marks the buyer's path from the first contact with a product/service to the purchase. This name appeared for a reason, because the whole approach is based on the fact that the number of users involved in it gradually decreases. Therefore, when constructing the structure of this concept, an inverted cylinder or something that really resembles a funnel is used in the form of an image.
The peculiarity of this system is the universality of the formula, which always works regardless of the time and period in which the sales funnel is used. The only thing that changes is the tools used to analyze and attract the client. After all, 20 years ago it was enough to launch a new product, and it almost immediately gained popularity or found its buyer. Now, as I said above, we need new approaches and methods for selling our services and goods. For example, use a modern way of promoting your products in the form of a sales funnel on the Internet.
To learn how to build a sales funnel, you first need to figure out what the stages and levels of a sales funnel are. We'll do this by taking a detailed look at the levels of interaction with a future client.
The structure of the sales funnel looks like this:
- ignorance;
- awareness;
- interest;
- consideration;
- intention;
- purchase.
As you can see, the sales funnel stages above are really designed to get you interested. Yes, using this formula correctly is slow but sure. After all, everyone will agree that it is much more effective not only to tell about your product, but also to find someone who will use the offer. There are now many services that build a sales funnel.
Sales Funnel: Examples
Let's look at situations where this useful tool can be used. Imagine a situation where one person is thinking about buying a mobile communication tool, and another clearly wants a laptop. In the first case, the buyer can buy a smartphone, tablet or laptop, but in the second case, we already know that the buyer needs a specific product. Here, it is worth paying attention to companies such as Apple, Amazon, Netflix. After all, they gained their popularity not only due to budget investments in advertising campaigns, but also due to a thoughtful approach to promoting their products. Their strategies are classic examples of building an ideal business. Therefore, you cannot neglect the history of famous brands.
The correct construction of a sales funnel should be present in everything. To do this, you need to analyze your skills or invite a specialist who will help you with this. After all, this scheme works anywhere and anytime, be it a sales funnel on a website or a combine harvester for harvesting wheat. You must find your client, find out who he is, and offer him what he needs.
Nowadays, most sales are made through websites. They appear first in search results. And then when you click on the link, you are swept away by a whirlwind of features, benefits, convenient purchase conditions and much more. This is how the online sales funnel works. The number of users on the network is growing rapidly, and it must be used
Here we smoothly move on to the topic of online sales.
Every company that wants to sell through an online store knows that developing and creating a sales funnel is the key to successful product promotion. That is why business owners who are genuinely interested in their business know that this is where Google Analytics comes in. This service allows you to analyze websites or applications to determine the audience/users and optimize the visibility of web pages. The same service allows you to detect the conversion of the sales funnel.
Sales funnel conversion is the number of online store visitors who made a purchase. Finding out this number is very simple. Let's look at the formula that will answer the question of how to calculate sales funnel conversion.
For example, 3,000 people visited your site, but only 3 of them made a purchase. In this case, the conversion is 0.1%: divide 3 by 3,000 and multiply by 100%. You can use data for any convenient period for your calculation. Google Analytics does all the calculations itself, which makes it an indispensable tool. Below are the main characteristics that Google Analytics shows. You define the target audience and how to influence it.
Conclusion
So, what should you pay attention to first when analyzing your site:
- Visitor demographics. Includes gender, age, profession, solvency;
- The actions of the recipient of the letters in the mailing list and on the website;
- Purchase history;
- Subscriber life cycle.
These are, of course, only basic metrics, but they are the ones you should rely on first and foremost.
We hope that you now understand what a sales funnel is and that these sales funnel examples will help you approach your business more consciously.
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