To become a master in a topic we must first understand its definition. First, let’s review
what are sales funnels? Sales funnels are visual tools used to understand the journey
consumers go through from the moment they first interact (see an ad, listen to a review,
etc.) with a brand to the moment they invest (take action towards), and even develop
loyalty towards said brand. Now, the reason it is called a funnel is because it is wide at the
top and narrows towards the base. For sales funnels to be a useful instrument for a
business we must also understand that this goes hand in hand with marketing campaigns
and communications.
Let’s also review these concepts. A marketing campaign is an action
plan or strategy used to promote a product, service, experience, etc. For a marketing
campaign to be successful it must have a clear goal (i.e. improve sales), a target audience/
demographic, a clear message shared through specific channels (ads for a sale promotion
on social media, or a store’s printed weekly ad), a budget that aligns with its success, and
possibly the most important part, it must be adaptable.
By understanding the sales funnels, businesses are able to optimize their marketing
budget by establishing their most responsive target audience and marketing campaign.
Identifying the essential requirements in each stage helps optimize the budget and
efficiency of the business. In layman’s terms, businesses will be able to identify in which
stage they see most success, what channels are most effective, and adjust their marketing
plans accordingly.
For example, Snowcakes Bakery wants to improve their loyalty with new customers. By
using a communication sales funnel they realize many new customers are not aware of
their voucher program (After 5 purchases of $50 or more in the span of 3 months receive
60% off on your next order!) which is sent as a Thank you for your first purchase! after stage
6. By using the funnel they are able to reallocate part of their budget and invest in a digital
service that sends the voucher to the customer via email and text, and tracks the number
of qualifying purchases made.
Ask yourself how you can use a sales funnel to improve your business' marketing strategies?
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