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What Is A Marketing Funnel?

This video is a little more on the theory side of things and takes a look at what a marketing funnel is and why it should be applied in your online marketing campaigns.



Video Transcription

[00:00:01] If you’ve read a book a marketing or business or done any sort of a course you’ve probably seen this chart before, this funnel, or a variant of it. So I’m going to quickly explain what it all means and then we’ll have a look at how you can take into account this funnel when setting up your marketing.

[00:00:19] The reason this funnel is so important is because it is the customer purchase funnel. So this is essentially the series of steps a potential customer will take when deciding to make a purchase.

[00:00:30] So all customers come in at the top of this funnel here and at the top is awareness. This is when they first become aware of your brand, of your business, maybe through word of mouth or stumbling across a blog post or whatever the case may be there.

[00:00:43] At the next stage here the customer becomes more interested in learning about your business so they’ll look into White Papers, Case Studies, read through the website, they’ll start to realise that perhaps what you’re offering is good for their business and they need that in some way shape or form, whether it’s delivered by your business or one of your competitors.

[00:01:06] From there they’ll move down into this decision side of things. This is where they’ll actively be weighing up Option A, Option B, Option C, getting quotes, deciding who to go with.

[00:01:16] And then finally they move into this Action stage. This is where they take action, funnily enough and they make a purchase. Hopefully that’s from you, if you, in these earlier stages have done a good enough job of conveying why they should work with you.

[00:01:31] Then after that there’s the final stage here which is becoming an advocate for your brand and referring their contacts to you for your services as well. So if you’ve done a really good job through all of these steps and then after they have taken action you’ve fulfilled on your promises, you’ve delivered a really good service, if they become an advocate it’s really great because it leads to referral business which as we all know is the best type of business.

[00:01:56] So this is a typical process or sort of funnel, a customer will make when purchasing. So let’s have a look at how we can market to these customers and try to move them through this funnel.

[00:02:09] So I want to take a look first at what most businesses do with their marketing. Which is essentially, you know, if they launched, let’s say you’re a business owner or you’re a marketing manager, you’ve been told to set up an AdWords campaign. What a lot of people will do is just send it to the home page on their site or send it to a random category page. So in this example we’ve got Google, Facebook, email marketing all going straight to the home page on the site.

[00:02:35] And really, you’re not really doing anything to move the customer through this funnel here, this purchase funnel. You’re relying on them landing on your site and moving themselves through this, moving through the site, finding the information they need, getting in touch eventually and you’re really leaving yourself open to them just bailing on your site without having gone through this process. You haven’t made it easy for them.

[00:02:58] So this is what a lot of businesses do and then they’ll say oh AdWords doesn’t work or Facebook doesn’t work. I’ve tried it, didn’t get very many leads, cost me a lot of money. But, I think you can probably see that if you’re not doing a very good job of moving a customer through each step here then it could be more than the fact that “AdWords just doesn’t work.

[00:03:19] If we move on to what some businesses are doing, some will send their traffic, Google, Facebook, email, instead of to the home page or a category page, they send it to a landing page. So when I say a landing page, I mean a page that has been set up to match whatever it is that the ads are promoting. So lets say you sell shoes, your Google ads talk about shoes and then you get sent to a page like this that has a phone number in the header, headline talking about shoes, supporting facts and features and benefits about the shoes and a contact form here for someone to get in touch to inquire about the shoes.

[00:03:56] So this is good, but essentially what it is doing is sort of trying to force the customer to go straight from awareness to action. Right. So they’ve become aware of you in the ad. They click the ad they’ve landed on this page. This whole page is telling you to get in touch straight away and take action. This can work, it can work for things like Emergency Plumber’s, an emergency plumber, it’s a time sensitive thing, a locksmith is a time sensitive thing, so someone clicking an ad just wants action right away.

[00:04:28] But for a more expensive item like a more expensive service or expensive furniture custom furniture that sort of stuff, customers are going to have a lot of questions and research and all that sort of stuff that they need to go through before they decide who they want to buy from. So trying to move them straight from an ad and the awareness to action is not the best way of doing things.

[00:04:49] What you could do here is set up a auto responder sequence on the back of them landing on your site that will warm them up over time. So I’ll explain that a little better.

[00:05:00] So here we have Google traffic, Facebook traffic, YouTube traffic in this, case going to a landing page. But instead of it being a landing page that’s trying to get someone to get in touch straightaway, it instead is giving them value, it might be teaching them a little bit about the service or the product. And the whole idea of this page is to get the person’s email address. So you’re not trying to get them to get in touch for a quote or a consultation or give you their phone number or buy something. All they have to do is give you their e-mail.

[00:05:29] So you might say look, here’s a bit of info about our service. If you would like a free guide on how to decide on the best provider of this service just give us your email and we’ll send it to you. So the customer opts in and then they’re sent an e-mail straight away with that free guide on whatever it is that you are sort of promoting.

[00:05:52] And again it has a whole ton of value in it but it’s not asking anything from them it’s just educating them and already they’re starting to feel a bit of an affinity with your brand because you’re giving them all this information, and then maybe a day or two days later another e-mail is sent with even more value on another sort of supporting topic or related topic.

[00:06:14] So once that’s done maybe a day later, two days later, yet another e-mail giving them even more value, more information. And so with each of these emails you’re essentially building trust each time. It’s a little bit more of, I guess, the branding, or the discussion between you and them, or the relationship is probably a better term, between you and them is forming and then maybe on the fourth email you provide a little bit of value in it, but you can also put an offer.

[00:06:42] You can say “look I’ve been teaching you about this stuff over time and maybe you realize that it’s pretty complex, maybe you’d like some help with that”. So here I am to help you here’s my offer it’s X Y Z. This is what we can do for you.

[00:06:53] So, as you can see if you look back up at this customer purchasing funnel here, they become aware of you through the ads, they land on your landing page, your landing page has a lot of value, so they’re starting to show some interest in your brand. When they give you their e-mail address that’s really strong interest. And then over time you’re giving them value through these e-mails which is helping them with their decision making.

[00:07:19] So they become aware of your brand, they’ve shown interest in it, they’ve started to realise that hey I need something like this for my business, so they’re weighing up the decision. Then when it comes time to take action, you chime in with an offer after having built all of this trust, even over a period of a week it doesn’t have to be long. And then if they do then take action, after they take action you follow up with great service, great after sales support, you really give them exactly what they’re looking for. Because you’ve built trust with all these e-mails and you’ve delivered a great product, they become an advocate for your brand and they start telling all of their friends that are looking for a similar sort of service that you just killed it for them.

[00:08:00] So this is essentially what a marketing funnel is. And for all high ticket items, high ticket services, you know lawyers, doctors, accountants, anyone that’s offering something that is going to cost thousands of dollars, and could be a bit of a commitment in terms of time, I think having a marketing funnel like this in place is always going to be much much better than just going straight to a landing page.

[00:08:26] So if you’re not running something like this in your business you should be. Give it a crack. There’s all sorts of different ways to go about it. I won’t go into the nitty gritty of setting up a funnel. Maybe I’ll do that in another video. But the theory is strong and it is something you should be considering for your business I believe.

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