The Critical Role of Sales Funnels in Digital Marketing

A digital marketing sales funnel is the structure that marketers use to define and plan how their content, campaigns and other efforts will impact each stage of the buyer journey. This allows them to better align content with the level of understanding and awareness that a specific audience has. In turn, this makes it much easier to generate and convert leads into paying customers.

The first step is to set clear goals, whether that be increasing brand awareness, generating leads or increasing sales. From there, you can create a measurable target such as the desired number of website visitors, email subscribers or conversion rates. Then you can design a funnel that will support those objectives, with the necessary steps and touchpoints along the way.

Using the classic AIDA (awareness, interest, desire and action) model as an example, you start by turning heads with your brand’s content at the top of the funnel. This can be achieved through a range of tactics such as paid advertising, SEO, social media posts and content that is aligned with the interests, pain points or queries of your audience.

Next, you pique their interest with compelling and educational content that builds trust and provides insights into how your product can solve their problems and address their needs. This can be done by sharing case studies, leveraging testimonials or providing product demos to help them see how easy it will be to get results. Finally, you inspire their desire by offering irresistible offers like discounts and free trials.

Once they have piqued their interest and built trust, prospects are ready to move on to the consideration phase. Here, they begin to actively investigate your offering and search out your website, social channels, reviews and other content in order to evaluate whether it will meet their requirements in terms of pricing, features, quality and how it compares to the competition.

Finally, they decide and purchase your product or service, either directly from your website, over the phone or via a physical store. Then you can nurture them to retain their loyalty through upselling and cross-selling strategies.

It can be difficult to predict how many people will enter and progress through your sales funnel. However, it’s important to understand the average customer lifetime value (CLTV) and the conversion rate that you want to achieve, especially at the top of your funnel.

For example, if you sell software that helps businesses track employee time cards, then you could offer discounts on your software for the first few months to encourage new users to sign up. This is an effective way to maximise your revenue and gain loyal customers who will be more likely to promote your brand to their friends and colleagues. 

In addition, you can also upsell your product by adding extra features or even a second license for a discounted rate. As a result, you can turn those discount buyers into loyal and profitable long-term customers.

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Check out my recent post on sales funnels and what I think about them. Are they still worth it?

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