A sales funnel is a great way to engage prospective customers, qualify their needs and transform them into paying customers.
However, did you know that there are multiple funnels you can use? By choosing the right sales funnel, or combination of sales funnels, you can maximise your revenue and keep your sales team happy!
We’ve identified five of the best sales funnels that your business can use. These are:
Together, we’re going to look at how these sales funnels work, who they are best aimed at and how you can incorporate them seamlessly into your sales and marketing mix.
Lead generation funnel
Best for: Businesses that want to generate warm leads
One of the most well-known and well-utilized sales funnels out there, a lead generation funnel offers a free product or service in exchange for contact details.
The product can be anything from an eBook to a webinar – as long as there is no cost to the user.
Once you have your customer’s details, you can qualify them to see if they are in a position to buy right away. If they are, you can pass their information on to your sales team.
If not, your marketing team can ‘keep them warm’ until they’re ready to make a purchase.
Below is what a lead generation funnel looks like:
Best for: Businesses that want to identify prospective customers
A tripwire funnel is when you sell a high-value product or service at a low cost, incentivising customers to make their first purchase.
Once they’ve bought from you, you can sell them bigger and better deals. Given that existing customers are a third more likely to spend more on every order, this is a great strategy to use.
For example, let’s say you sell gourmet cupcakes which usually sell for $120 for 12. You can start by offering two cupcakes for $5. You can then sell these customers six cupcakes for $50, finally working your way to the $120 offer.
A tripwire funnel is very similar to a lead generation funnel; it’s just you’re offering something for a low price rather than for nothing. By setting a price from the offset, you get a better indication of who could potentially become a customer.
Here’s what a tripwire funnel looks like:
Core offer funnel
Best for: Businesses that are ready to sell
All businesses have a core offer – the flagship product or service they are best known for. In this funnel, you’re going all out and promoting this to prospective buyers.
If your core offer is relatively inexpensive, you may be in a position to encourage customers to buy your core offer straightaway. If it isn’t, you may need to utilize other funnels to warm up prospective buyers and/or see who is most likely to make a purchase.
For example, let’s combine the three sales funnels we’ve looked at so far:
- You start by using a lead generation funnel to identify a list of people who might potentially buy your product or service
- You then move to a tripwire funnel to see who could be interested in your core offer in the future
- Finally, you introduce your brand new customers to your core offer funnel
Here’s the blueprint of a core offer funnel:
Best for: Businesses that have additional products or services to promote
Did you know upselling can increase your revenue by up to 30%? Pitching additional products or services to people who are already committed to buying can be an easy way to make more money.
An upsell funnel works when you offer relevant add-ons to customers after they have bought your main product. For example, if you sell greeting cards online, you can offer to send flowers and chocolates to the recipient for an additional fee.
Upsell funnels rely on FOMO – the fear of missing out. You want to offer your customer an irresistible deal that they can only get if they buy now.
Here’s what a upsell funnel looks like:
Best for: Businesses that offer a subscription service
While one-off purchases are great for your business, a recurring income stream is a fantastic way of ensuring an ongoing profit. According to McKinsey, nearly half of people are signed up for an online streaming media service, and 15% are enrolled in a product subscription service.
With a continuity funnel, the aim is to get customers to sign up for a monthly or annual subscription. Many businesses do this by offering a free or discounted trial. While some people will cancel when the trial ends, others will keep using it or even forget to unsubscribe!
Here’s what a continuity funnel looks like:
Which type of sales funnel is right for my business?
The honest answer… it depends!
It may be the case that all five of these sales funnels are perfect for your business needs, and you use them all at various stages of the customer journey. It might be that you opt to focus on one. It ultimately depends on the industry you’re in, the product/service you want to sell, and how many organic leads you receive.
Whichever sales funnel you decide to use in your sales and marketing strategy, it’s essential to make sure it’s as easy to use and understand as possible. Businesses that simplify the process are 62% more likely to win that all-important sale.
If you’re still not sure which type of sales funnel is right for your business, we can help. Our dedicated team of sales funnels specialists will audit your website, review your business goals, and let you know which combination of sales funnels will bring you the best return on investment.
Contact us today to find out how you can introduce fresh new leads to your business and make more sales.