Why Do Funnels Work So Well?
It's Charlie with a question. Four questions actually.
- How much do you know about funnels?
- Are you using a funnel now?
- Is your funnel profitable?
- Do you know WHY funnels work so well?
Today we are zeroing in on that last question ... why do funnels work so well?
You see, funnels DO work incredibly well when set up properly. And they work for a number of reasons.
In today's video I reveal those reasons and how they can make all the difference for you!
I hope you enjoy it.
Sell MORE with funnels!
Prefer to read? Here is the enhanced transcript for your convenience.
Hi, this is Charlie Page and the other day a customer asked me, "What are sales funnels and why do they work so well?"
Well a sales funnel is a series of steps that turns strangers into customers.
There can be a few steps or there can be many, and they work incredibly well for making sales for building your list and for automating your marketing.
We all need to use sales funnels, but why do they work so well?
Well there are two words that describe it.
You see, all buyers move through three stages before they buy.
This is true of me, it's true of people who buy from you. Here are the stages.
Now, I put together this little graphic to show you what a funnel looks like and what the three stages are.
Awareness, evaluation, and conversion.
In awareness, the person is aware hat they have a problem, but they might not be aware that there is a solution to the problem.
So they're aware of the problem, but not really aware that, hey, there's a solution that will work for them.
And they're certainly not aware that your offer, the thing you're promoting can solve their problem.
They're hurting and they want help, so they search.
They click on ads, they click on links in emails they receive, they ask their friends, and once they become aware that there is a solution out there, they movie not evaluation.
- They begin to evaluate potential solutions to their problem.
- They evaluate offers that can solve the problem.
- They evaluate people who could offer those solutions, and then they move into conversion.
But they might not convert into a sale just yet.
You see, conversation can mean many things.
Let's take a look. Conversion can mean ...
- Joining your mailing list.
- Following you on social media.
- Leaving a comment on your blog,
- Buying your product (that's a good thing)
- Recommending you to others. (That's even a better thing)
It can mean all of these things.
These are all different types of conversions.
Now the answer to why sales funnels work so well is this.
A funnel moves a person through all of these steps easily and automatically.
Let's compare running an ad and sending someone directly to a sales letter, versus sending them through a sales funnel.
Situation one, directly to the sales letter.
You run an ad, you send those people directly to a sales letter.
So a person has a problem and wants a solution.
They see an ad that interests them, they're taken to a long page that tries to make the sale right now.
Now the page is probably going to be long because they're trying to make the sale right now, so they have to say everything all in one conversation.
They don't know the person who wrote the sales letter.
The person who visits the site, they have no idea who this person is who wrote this 5000 word long sales letter or made this 30 minute long video, and they certainly don't trust that person because they don't know them, and this is, after all, the internet.
So they leave without buying.
Now, you've heard many, many times I'm sure that a website that's doing very well converts 2% of people into buyers.
That's two out of 100.
So what happens to the other 98?
What are the odds of them returning to buy later? In today's world, almost zero, and here's why.
Now, I've bene online for 17 years and I've seen this trend happen over that time, and I can tell you that 10 years ago, people bookmarked your site, and they would return.
Everybody would go control D, or command D or whatever it was and they'd bookmark your website, and they managed their bookmarks and they organized them, and they tried to keep a list of sites that they wanted to return to.
Today, here's what they do.
They open up Google, they type in a search term, and they click on a result from the first page.
It's what they do. They don't bookmark and return.
They Google and click.
So unless that sales letter that you were sending traffic to, hoping to make a sale ... Unless that sales letter happens to be on the first page of Google, for just the right keyword, that potential buyer is not coming back.
And by the way, Google really does not like to put sales letters on their first page.
They like to put content on their first page.
This is why content marketing is so powerful.
Now lets look at situation two, the sales funnel.
A person has a problem and wants a solution.
Sounds familiar, right?
They see an ad that interests them, and now they're taken to a short page offering a free gift in exchange for their email address.
Now why is the short page worth emphasizing?
Because a lot of people are on mobile and everybody's in a hurry.
So the shorter the page, the better.
You've heard the term above the fold?
That just means they can see everything without having to scroll down.
So they see the ad, they're taken to a short page offering a free gift in exchange for their email address.
They opt in to get the free gift.
Boom, they just converted.
Now, they converted to a subscriber, not to a buyer, but they did convert, even if it's on a small level.
They don't have to remember to come back.
They don't have to bookmark anything or write down the address or any of that because you are going to remind them.
Now they're sent a series of emails, sharing details about the solution to their problem.
They're even sent videos about it, and then they're offered a chance to buy.
What are the odds they'll buy after all of that?
Much, much higher. And here's why.
Because now they know, and like, and trust the person who has been providing the free information, because that person's been providing free information with no obligation, no pressure, and since they converted once already into a subscriber in order to get the free gift, it's much more likely they will convert again into a buyer.
But the funnel doesn't have to stop when they buy, and this is something a lot of people miss.
Smart marketers move buyers into a funnel to help them use what they purchased.
This is called ascension.
They ascend up the ladder of value and they buy even more, and they recommend the product to their friends.
They might even become an affiliate and send traffic to the sales funnel of the product they just bought.
And this is why funnels work so well and why we all need to use them.
They're gentle, they're not hardcore, "I'm closing the sale right now, buy or leave forever."
They're simple, they're easy to understand.
They nurture the person who gets into them with great content, and they're automated, which gives you a lot of free time.
You build this once and then send traffic to it and you're done.
It's like meeting a pretty girl in a coffee shop.
If you meet a pretty girl in a coffee shop and you say, "Oh you're pretty, let's get married," you're probably going to have a problem. So what do you do instead?
You ask her out to coffee.
You say, "Can I buy you're coffee?"
And then you take her out to dinner and then a movie and then you meet each other's friends and what develops is a relationship. And that's why funnels work so well.
They build relationship.
By moving the prospective customer through the stages of awareness, evaluation, and eventually, conversion.
And when I say eventually, this doesn't take a very long period of time.
As you saw, the first conversion can happen on the first day.
It's seamless and it's very effective, and you don't have to lift a finger.
My motto in business is this.
Built it once, profit from it many, many times.
I hope you found this helpful.
Sales funnels work.
They are the way to sell things online.
They are the way to make great customers online, and they're the way for you to create free time.
This is Charlie, I hope you enjoyed this, and I hope you have a great day.