Sales Funnel Optimization is the process of fine-tuning a sales funnel and its stages for the highest acquisition, conversion, and retention of prospective customers. To optimize a sales funnel, strategies and tips need to be employed. Keep reading to know more.
Before you start building your sales funnel, it is essential to have a clear business vision, develop an e-commerce marketing strategy, and then define your target audience to work towards your business growth.
This is where understanding the intricacies of a sales funnel comes in. Such intricacies include;
- Tripwire Marketing
- Paid Media ads
- Sales page
- Email marketing, and various other tips strategies one can employ. Let’s glance at some of these.
Basically, a Sales Funnel Optimization technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue.
While it usually involves marketing more profitable services or products, it can be simply exposing the customer to other options that were perhaps not considered.
Upselling is focused on upgrading or enhancing the product the customer is already buying.
For example, a housekeeping service might upsell a customer buying a weekly cleaning package by offering a package with more rooms, and cross-sell by also offering a carpet deep cleaning service.
A downsell is the reverse of what is happening in an upsell, rather than selling a higher-priced product, you offer a similar lower-priced product.
These lower-priced products also help to increase the average order of the customer and bring more profit into the business.
Downselling is a sales technique where you offer an alternative to the primary upsell by offering a more budget-friendly or more convenient buying option to your customers after they must have rejected or declined the upsell.
To some, seeing a reduction in price or a slight change of offer to suit the atmosphere causes a negative impression about a brand or doubt in the authenticity of a product.
While that could be true in some cases.
It’s your call as a business owner to study your audience and present the right downsells to people you think aren’t fit at the moment for your core offer.
Tripwire marketing is the Sales Funnel Optimization practice of offering leads a low-cost product with the intention of selling them more expensive products later. Tripwire marketing is a common practice intended to increase first customer acquisition.
The term tripwire marketing might sound a little shady like you’re trying to get one over on your customer. That’s not the case at all.
Marketing and advertising experts have been using tripwire marketing for decades in one form or another, and it works just as well online as it does in brick-and-mortar stores. In fact, it’s even more effective because you can more easily stay in touch with the customer.
Let’s say you run a subscription service for which you charge $30 per month. Customer A has been a loyal subscriber for six months, then suddenly cancels his membership.
That’s a tripwire.
You can then use email marketing to reel in Customer A. Reach out via email to ask what went wrong or if you can improve your subscription service in any way.
Then you offer a can’t-miss deal, such as one month for $5 instead of the standard $30 — with the option to cancel at any time, of course.
Paid Media Advertising
Paid media is defined as the purchase of ad inventory on a media channel or publisher site to broadcast your brand message and reach your target audiences. It is a form of digital advertising that includes sponsored content to promote a brand’s products or services.
It is all about paid promotions on other sites to display your marketing message and influence audiences you could never reach before. This can be done on social media, websites, blogs, publications, etc.
An essential component of a digital strategy for brand awareness and revenue growth is media. Media acts as the channel and real estate that carries the brand message and promotes the brand or the brand message.
Not to be confused with a business website or blog, a sales page is a standalone page created with one specific purpose in mind, to secure sales for your product.
The product or service you’re selling on your page can differ depending on your industry or niche. However, the purpose of your sales page remains constant – getting visitors to convert into customers.
A sales page is a great opportunity to explain your products and services to visitors and make them want to buy. It needs to be attention-grabbing, informative, and persuasive, all at the same time.
And if it’s not optimized for conversions, you’re losing money. That means any marketing and advertising budget you’re spending to promote your products will be wasted.
For most websites, only 2% of web traffic converts on the first visit. Retargeting is a tool designed to help companies reach 98% of users who don’t convert right away.
Here’s how it works: you place a small, unobtrusive piece of code on your website (this code is sometimes referred to as a pixel).
The code, or pixel, is unnoticeable to your site visitors and won’t affect your site’s performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie.
Later, when your cookied visitors browse the Web, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served only to people who have previously visited your site.
Retargeting is a powerful branding and conversion optimization tool, but it works best if it’s part of a larger digital strategy.
Email marketing is the act of sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing.
It involves using email to send advertisements, request business, or solicit sales or donations. We have created a concise article on email marketing. You should read it here.
Sales Funnel optimization is the process of fine-tuning a sales funnel and its stages for the highest acquisition, conversion, and retention of prospective customers.
While no sales funnel is perfect, there’s nothing to say that you can’t influence the purchase decision of potential buyers and improve your sales funnel conversion rate. Sales funnel optimization works best if it’s part of a larger digital strategy.
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