Converting Browsers Into Buyers with a Sales Funnel

What is a Sales Funnel?

A sales funnel is essentially a multi-step process that moves prospects into buyers. They are key to understanding your sales and marketing activity.

Most of the examples I found online are geared to multi-level, corporation companies; I decided to create my own for small eCommerce businesses. A lot occurs between the time that a potential customer enters your funnel, to completion of a purchase. Depending on your niche and sales model, they are typically 4-7 stages. My sales funnel is broken down into five levels:

1. Awareness:

This is when the visitor’s arrive at your shop or website. They typically arrive from ads, an enticing offer, or social media- anything that makes the visitor aware of your product. This is where strong branding and offers create leads. Now, your goal is to move them through the stages that will take them from visitor to buyer.

2. Interest:

Now that they are aware, you need to build their interest- At this stage, customers have looked through your website and favorited or bookmarked your shop, signed up for your mailing list, or followed your social media page.

3. Evaluation:

This is the “fence-sitting” stage where prospects debate following through. They will research your reviews and testimonials. This is also the stage where customers will discard options based on a considerations like price point, competition, shipping and quality – so, what makes your product stand out?

This is also a great stage to follow-up and implement an automated email sequence – you can include FAQ, testimonials, benefits of your products, or your current deals or promotions.

4. Decision:

At this stage, customer prospects decreases further, but the chances of closing a sale rise. This is the final choice to purchase or walk away.

With that being said, this is a great time for tactical moves – flash sales, bonus offers, free shipping, and promotions. The offers may entice the prospects to make the purchase

5. Action:

The final stage- the sale is completed. Although, you should always follow-up and practice customer retention tactics to create a return path.

My Sales Funnel Flow Chart:

Sales Funnel (1)

Now, time for a sales conversion. This can quickly give you valuable information on areas that need improvement versus areas that are succeeding. Across eCommerce industries, the average landing page conversion rate is 2.35%, yet the top 25% are converting at 5.31% or higher. As of January 31st I had 6 sales and a total of 199 views on my Etsy- that is a 3% conversion rate.

total visits as of 1-31

Feel free to use my funnel tactics to create your own;  just keep in mind that its an evolving process, always modify and repeat!

 

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Maximizing Revenue on Etsy

Now that you planted the seeds of your Etsy Shop, it is time to grow. You can also apply these tactics to other eCommerce businesses; simply adjust them to your niche. Here are some tactics I’ve found through trial and error and my own research:

 Customer Retention Tactics

Maintaining customer retention is integral for meeting your bottom line. Here are some tactics to earn repeat customers:

  1. Communication – Respond to questions and feedback, and kindly to any problems your customers may have within 24 hours. This is key to build trust with potential customers and building repeat business. Also, always follow-up the arrival of their product with an email to ensure satisfaction. This is a good time to ask them to review your product. Great customer service isn’t always easy, but it is key to a your business’s lasting success.
  2. Timely shipping and personal touches – I like to add a handwritten thank you note and sometimes include a small crystal with their order; hand-written notes are a quick way to go that extra mile for your customer.

3. Follow-up Within the first month of purchase, email them a coupon code to your shop. Coupons are a great way to build customer loyalty. You can offer free shipping, percentage off their next order, or a free item.

Up-Selling Tactics

  1. Suggestions and Bundling – Customers search with keywords on Etsy. When they search, all shops with items matching that agenda show up. They may look look at the item, but in order to get customer’s to explore the rest of your shop, put links to your other products in that collection, or matching pieces. Click the images to see the examples below:

JewelsFromMars
etsy hop 6
etsy shop 7

2. Freebies – Many savvy shoppers will add additional items to their shopping cart to receive something for free; especially free shipping. The question is how to affordably offer free shipping and balance the expense? First, factor the shipping into your expenses. Next, find a reasonable dollar amount that brings you more profit without taking a hit. Although, taking a short-term loss is a smart sacrifice if it brings loyal customers. Just make sure to follow up with customer-retention tactics!