So, why are Lead Conversion Funnels Crucial for Business Growth? Let us give you some insight into the WHY!
Before we get all “fancy” with technical terms, I’d like to explain what a lead conversion funnel is, in the simplest way possible…
|Male’s, then read this part below:||Females, then read this part below:|
|So, let’s say you are doing maintenance on your car, and you are wanting to top up the oil, brake fluid or antifreeze, to prevent spillage, one would use this nifty little gadget which is called a funnel. And dear men, please don’t feel left out because your explanation is less than the women’s one. Men like simple, and women like details with pink frills.||So, let’s say you are cooking granny’s famous “chippies” (French fries), and have finished the frying process, you would wait for the pot of oil to cool down completely, and if Rockefeller is not your last name, then you would want to re-use the oil at a later stage, so you would need to transfer the oil from the pot back into a bottle. How do you do this? With a funnel.|
If you still don’t know what a funnel is, please click here where Wiki, will “hook” you up with a more detailed explanation.
No hard feelings if my descriptions didn’t quite cut it for you LOL!
Yes, I get it, but what’s the point of your story, Rory?
So, by now you are probably wondering what oiling your car and cooking French fries have in common with a lead conversion funnel right?
They all use a funnel!
Even though a lead conversion funnel is in a digital format, they all have the same goals…
To move something from here to there!
- For the car scenario – it was to move the oil from the container into the engine
- For the cooking scenario – it was to move the used oil back into its container
- And for a lead conversion funnel – it is to move potential customers, who are just browsing the rows, into actual “standing-in-the-row-to-pay” customers
What is conversion?
The only REAL difference between lead conversion funnels and your kitchen slash car maintenance funnel is that not all 100% of the contents (potential customers) poured in, come out (customers). This is where the conversion portion comes into play.
Imagine there are holes in your funnel, where leads (potential customers), leak out for various reasons, including disqualification, lack of interest, unsubscribes, etc. To predict this loss with a reasonable amount of certainty, you use conversion rates to calculate the various lead stages.
Help is available!
If you are looking for help with your potential conversion rates and overall digital marketing strategy, then click on the link, and sign up to qualify for your FREE Marketing Proposal.
Each business’ conversion rates will vary, but they are usually fairly consistent from industry to industry.
The goal of lead conversion funnels
Moving potential customers into actual paying customers sounds so simple, almost as simple as driving over a bridge, but it’s in the detail where all the magic happens!
So, picture a funnel, with 4 different layers (stages). Each layer consists of different processes that need to take place for the customer to move to the next layer. You want to move them from the top (wide section of the funnel), into the last layer of the funnel (smallest part). At this stage of the funnel, your customer has bought from you and has become a loyal return client.
All of your other potential customers are still hanging around the top of your funnel, they are close, but not close enough.
Imagination vs Awareness
Now, imagine you have a shop, and you see people standing outside of the shop, looking in, how would you get them inside the shop?
In the world of digital marketing, you would use social media, blog posts, press releases, brochures, etc. to generate awareness. And then get them into the first layer of your conversion funnel.
*Okay, back to the “you – have – a – shop” scenario…
You now have the customers inside of your shop. You now want to warm them up and get them interested and actually buying from you. This is the second stage, and we call it the Converting Leads stage (second layer/stage).
In the digital marketing world, you will turn visitors into leads by using “how-to” videos, e-newsletters, trend reports, blogs, white papers, etc.
*Back to your shop again…
So, your potential customer is walking around and looking at things in your shop. And in this stage of your funnel, you want to try to get them to buy from you. We call this the Close stage, the 3rd stage of your funnel. If you have a customer in your shop, it’s best to try engaging with them. Ask them if you could help, or tell them about your latest arrivals and how they are linked to the latest trends, etc.
Do not under any circumstances “harass” your customer. Have a friendly conversation, but if you see they aren’t opening up to chatting, then don’t keep probing them!
The world of digital marketing
In the world of digital marketing, you will turn leads into customers by using things like e-books. Live or in-person webinars, or straight out asking if they want to buy. Remember this is a digital marketing process, meaning it is online. If you had a shop, you would not walk up to a potential customer and ask them if they want to buy something every time they pick something up. You would chat to them, and create a relationship/rapport with them first. In one of my others blogs, you can read more on how to do this.
All the above is building up to why Lead Conversion Funnels are Crucial for Business Growth.
*In your shop again…
Let’s say your potential customer has bought from you!
You now want to turn that customer into a return customer, who comes back with their friends, to show them where they bought the amazing product/service.
In other words…
You want to turn them into loyal fans!
If you had a shop, how would you get customers to come back again?
Well, through excellent customer service, as well as an awesome after-sales service. Meaning after your client has bought from you, you don’t just leave them hanging “high – and – dry”. You keep providing a service to the end, and that my friend, is what’s going to keep them coming back.
Again, in the digital marketing world, things are done a little differently.
You would achieve customer loyalty through social media, and e-newsletters, or email marketing. Keeping them up to date via email with the latest trends. Including engagement, perhaps even a discount for return customers. I know that usually gets me coming back for more if it’s something I like.
Why you need a lead conversion funnel
Maybe you’re thinking…
Nice story John, but you still haven’t told me why Lead Conversion Funnels are Crucial for Business Growth, what can it actually do for me?
The benefits of conversion funnels
Lead conversion funnels benefits…
Check out the top reasons why you absolutely have to have one, it helps to:
- Re-align your marketing goals with business goals
- Track your success rate to business goals
- Hold both sales and marketing accountable
- Plan your marketing campaigns
- Drive the right traffic to your site
- Identify where leads are getting stuck or losing interest
- Deliver the right content at the right time
- Provide a more accurate sales pipeline forecast
- Set goals for the following year
The best benefit…
A “no thank you” doesn’t really count in digital marketing, you can always come back to them at a later stage with a soft nurturing email etc.
By using lead conversion funnels, you will be running a fully optimized business. Your business will be operating at its full potential at all times. Thus ensuring your business withstands the test of time. You will be staying ahead of your competitors which puts you in the driving seat of your market!
Have you realised why Lead Conversion Funnels are Crucial for Business Growth yet?