It’s one of the most talked about and most feared words within any sales community.
How do you get a cold lead to warm up to your product before they make a purchase? How can you increase the effectiveness of your sales campaigns so that customers not only convert, but keep coming back to buy more and more products from you?
The answer, for online sales anyway, is all about creating the right lead funnel for your customers.
What Is A Lead Funnel?
The first thing to understand is what, exactly, I mean when I talk about having a lead funnel setup on your site.
Basically, a lead funnel is an automated system you put in place that turns a random visitor to your website into a warm lead you or one of your sales reps can talk to and actually have a good chance of closing the deal.
For some businesses, the entire funnel might be automated and the sale completed online, with no human touch points needed.
What Makes Lead Funnels Successful
When you’re creating your lead funnel, the most important thing to remember is that leads are warmed gradually, and often take time, especially for large purchases.
Your biggest challenge as a marketer is to create a series of small, almost no-brainer steps that the user should take.
The “easier” the action is for the user to take, the more likely he is to take it, and then be in the system for potential future conversion.
For example, one of the highest converting tactics is to offer users a free resource guide for signing up for an email list, and then from there to gradually increase the level of commitment, until the user is ready to speak with a sales rep or even make a direct purchase.
Why Lead Funnels Are Important
In case you don’t have a clear picture by now, let me throw some numbers at you.
Most sites that haven’t been optimized or tested expect sales conversion rates in the 0.5-2% range.
That means that if you have a $100 product, and you get 1,000 visitors to your website, you might expect to get 10 sales, and earn $1,000.
Let’s increase that conversion rate, just slightly, to 4%.
Now, instead of $1,000 in revenue, you have $4,000! But it doesn’t stop there.
Lead funnels have helped businesses improve conversion rates to the 15-20% range and, in rare cases, even higher. That means that was once $1,000 in revenue becomes $15,000-20,000 dollars.
Scale that difference out to thousands of users, every month, and we’re talking about the difference between a company that struggles to make ends meet, and one that does multi million dollars in revenue every year!
Check out this article from marketo for more stats!