Sales funnels are the most important part of your business. Get an early glimpse into how they can help your business by reading this early draft excerpted from my Sales Funnel Bible book.
As a business owner or entrepreneur, you not only want to sell your product or service, you want to do that over and over to earn consistent revenue, and you also want to make adjustments to increase your profit without hurting sales or customer service.
There are three main ways that you grow your business with your sales funnel:
- You can increase the number of people going through your sales funnel at one time
- You can increase the speed that people go through your sales funnel
- You can increase the amount of money that each person spends in your sales funnel
Of these three ways to grow your sales funnel, increasing the number of people going through your sales funnel at one time is probably the default strategy that most entrepreneurs adopt. (The other two are effective, and used frequently, but they are rarely the ones initially adopted).
Increasing the number of people going through your sales funnel at one time is a two-fold activity. You can perform just one of these activities although you will have greater results when you do both together.
- You increase the number of people in your target market who pour into the top of your funnel. If you purely increase the number of people from your target market who enter your sales funnel, your business growth will be a predictable increase based on the ratios you already have from the different steps.
- You increase the percentage of people who move forward in your sales funnel and make it all the way through the end. If you improve the ratio of people moving from one step to the next, your business growth will seem small at first.
It’s really when you combine those two activities together that you see really strong improvements – with the opportunity to see exponential results – since your sales funnel provides both numerical improvement and percentage improvement together.
However, many entrepreneurs (especially brand new ones who are desperate to grow their businesses) choose the first option of simply dumping more people from their target market into their sales funnel.
So how do you increase the number of people that go through your sales funnel at one time? I’ve discussed a few of these in-depth in their own chapters, with some specific tactics you can use, but here’s a convenient list for you with some of the bigger ideas:
- Ramp up your marketing. Seems pretty obvious, doesn’t it? Just increase the marketing that you’ve been doing. Instead of reaching 10 people with your marketing effort, reach 20. Or 200. This might mean an increase in effort or marketing expense but if your ratios hold true then you should still see an increase in sales.
- Test new marketing techniques. Adopt new marketing techniques (including marketing channels or the ways that you communicate your message) and test their effectiveness. Use them along with your existing marketing or as a replacement.
- Test new marketing messages. Try saying things in different ways and see if that improves the percentage of people who move from one step to the next.
- Adjust the number of steps (mindset evolutions) that you ask your target market to make. You might remember from a previous chapter that it can increase the velocity of your sales funnel contacts but it can also increase the percentage of people who move from one stage to the next.
- Ramp up your sales. Increase the percentage of people who move from one step to the next as a result of your interaction.
- Build an evangelist program. Get your happy customers talking about you to their friends, and those friends will then enter your sales funnel further down the funnel (as “warmer” clients).
If everything else remains the same, increasing the volume of people going through your sales funnel should result in more customers – from a numerical increase of the people going through your funnel and/or from a percentage increase of the people who are in your funnel.
There is something you should know, though: Increasing the number of people in your sales funnel can be a dangerous game because the larger number of people can potentially increase the strain on your sales funnel. In fact, this is a reason why many businesses struggle (and even fail) early in their life cycle. In the next chapter I’m going to talk about that, why it’s a problem, and what you can do about it.
This chapter is excerpted from an early draft of my book. Comments and constructive criticisms are welcome. Please be aware that the chapter content and chapter order may change by publication.