Does Your Business Have a Sales Funnel?
Not defining your sales funnel will confuse and handcuff potential buyers from purchasing from you. You may also attract the wrong people altogether and experience issues with them once you’ve started to fulfill their order.
Can you track these metrics?
- Where do your leads come from?
- How many new leads do you get a month?
- What % of those leads fit your ideal customer profile?
- How many new meetings do you book a month?
- How many deals do you close a month?
- What % of customers renew each month?
You might not be familiar with the metrics you need to track to know how your business is operating. Or you might not have defined upsell opportunities so that you can serve your customers even more than they were expecting initially.
Wham, bam, thank you, ma’am
For the longest time in my business, I worked on making the coolest project, the best art, or solving my client’s concerns. I never really tracked anything except for my income and whatever project I was currently working on. A sales funnel wasn’t on my radar; in fact, I didn’t even know what a sales funnel was. Russell Brunson of ClickFunnels talked about McDonald’s sales funnel in his books and videos.
Let’s take a look at McDonald’s sales funnel
Did you know that it costs McDonald’s $1.91 in advertising just to get you into the drive thru, and when they sell you a burger for $2.09, they’re only actually making just 18 cents, but when they upsell you fries and a Coke for a $1.77 more, they make, and more importantly, they keep $1.32 profit. Yes, eight times the profit of the initial sale.
Without an upsell funnel:
- $1.91 advertising spend
- $2.09 your spend on a burger $0.18 profit
- With an upsell funnel:
- $1.91 advertising spend
- $2.09 your spend on a burger $1.77 fries and a Coke upsell $1.32 profit
The power is in asking the question, “Would you like fries and a Coke with that?”
That’s pretty cool, don’t you think?! Okay, but what does that have to do with you?
Well, if you’re like most people who sell stuff online, you’ve set up a website and you started to sell your product, but just like McDonald’s, even if people are buying it, after your advertising costs, you’re probably not left with enough to even cover your website hosting bill.
By now you must be realizing, if you want to make money online, you can’t sell from a static website. You need to set up a sales funnel.
Think of it as a drive-thru window for your business online. Your customers are approaching your business online through a capture page. You can gather their contact information and follow up with them through email.
Then, instead of selling them a burger, you have a sales page created to sell your initial product.
This is what we call a sales funnel, where website visitors come in the top and cash comes out the bottom.
What can your “fries and a Coke” be for your business? Your sales funnel should:
- Lead your customers through the buying process
- Offer them more of what they want
- Serve them even more in the process
What are you going to do to take immediate action to mend this issue? How can you productize your services and create upsell opportunities to grow your sales? Brainstorm with your team.