A high-level funnel aims to help you understand conversion optimization basics like what it is, why it's important, and how to create one for your business.
A high level funnel is a visual representation of how much a company earns from different customers. It is often used in the marketing industry to show a company's growth potential.
Different companies have different types of customers, and their income varies. A high-level funnel will show how different types of customers contribute to a company's total income.
For example, some companies might focus on an online sales model and benefit from volume-based pricing.
These companies usually make less profit per customer but can sell more products at higher rates. On the other hand, some companies are set up like a subscription-based model.
These companies often earn a profit per customer and tend to have fewer customers than those businesses that sell more products at high prices.
A high-level funnel can show outside of these specific examples how a business makes money - which is the goal!
A high-level funnel is designed to be a simple way of visualizing where total income comes from and by which group.
Some benefits of using a high-level funnel are that it makes it easier to identify and prioritize the key actions required to achieve your business goals.
It allows you to quickly test different hypotheses about how best to reach your target market, and it allows you to track progress and react quickly to changes in conditions.
Options can also be explored and policy determined through a high-level funnel.
Low-level revenue source - all sources that contribute to revenue activities:
Products Professional services Firmware/applications Growth of existing customers Revenues growth+ Market share builds +Closed Loop Source Revenue events - Monthly financials break out table (ERP Source: Financialize)
A high-level funnel shows the whole picture so that finance managers can get a broad idea without investing time in per product details.
Many methods can be used to improve the effectiveness of a high-level funnel.
- Create a clear and concise product or service offering. This will help potential customers understand what you offer and decide to purchase it.
- Eliminate unnecessary steps in the purchase process. This will reduce the time required for someone to purchase your product or service, which will increase conversion rates.
- Develop an effective scorecard that describes all required processes to complete the purchase cycle. They include everything from generating an order request to sending it and confirmation emails and tracking data tools such as web analytics or salesforce.
- Design a cost-effective channel mix methodology to support campaign planning because different products have different price points and channels/communication methodologies vary by each product offered.
- Develop hyperlinks that flow from the high-level funnel to specific groups and individuals told they could lead.
- Introduce HR as a point of contact between different sources/groups, which will help reduce customer number noise if each person introduces themselves using several references rather than one reference profile
- A common problem in modern business practices. This allows other customer service representatives to target and communicate with them without confusion over multiple CV letters due entirely to a lack of correct and appropriate messaging.
- Build on your database with a lead generation plan that feeds prospects into key sales applications (CRM, email marketing automation), so you can ensure powerful leads are captured from all sources. Make sure there is no data loss.
- if the prospect has either switched companies or upgraded their services, this information needs to be accessible for further follow up and more detailed analysis required by executives to make an important decision in an appropriate amount of time.
A high-level funnel is the big picture of the entire sales process.
It's typically divided into four phases:
- Phase One: Awareness,
- Phase Two: Consideration,
- Phase Three: Conversion,
- Phase Four: Loyalty/Retention.
There are several common mistakes that businesses make when creating a high-level funnel.
One common mistake is failing to develop an adequate customer acquisition strategy.
Another mistake is not framing the problem in a way that can be solved by the business.
Finally, businesses may not properly track and analyze their results to determine if their strategy works.
A high-level funnel works: Customers enter product information into the website’s search bar.
If the customer is interested in a certain product, the website directs them to a relevant product detail page. The customer can then purchase the product or learn more about it.
A pre-sale funnel shows the internal process required to move a customer from awareness through consideration, conversion and loyalty.
The part of this process that most direct marketers don’t consider is the details about each step for customers to buy their offer.
Getting more information on this possible purchase beforehand can give your business more time to check out its risk vs making sales offhand because you have reduced traffic.
The decision to buy is an important part of the journey. But how do you capture new customers or viewers? One way - and often the simplest - is sampling.
You provide some free samples that give prospects a small window into your product before purchasing your full course, video, ebook etc...
It's less intimidating than buying it all at once because people can see things for themselves first-hand – even if just for 10 minutes.
Sometimes consumers leave your offer page because they think it's inferior or doesn't want to continue reading.
During design, you can make changes, such as redoing what you've already ordered, offering more of the product that seems interesting to visitors, and changing some price points if needed.
Funnel design is one of the biggest components of successful online sales strategies. This frequently overlooked yet important part can be very powerful for a business's success and profitability.
While the idea of a funnel works in any industry, it is most relevant for online marketing.
The process encompasses three aspects that affect how people move through the product (or service) available to them:
- awareness,
- consideration and
- conversion.
1. Make sure the funnel is user-friendly and easy to navigate.
2. Primarily focus on converting visitors into customers as quickly and efficiently as possible.
3. Use effective marketing techniques to attract more interested individuals to your funnel and convert them into customers as quickly as possible.
They include:
(1) The Traditional Funnel,
(2) The Expanding Funnel,
(3) The S-shaped Funnel,
(4) The Reversing Funnel.
There is no one size fits all type of funnel. You will have to use different funnels depending on the nature of your business or profession.
With a traditional sales funnel, the basic funnels are page views and purchase pages; in this case, you have to track your customers based on the date they contact your offer(s) or landing page (purchase)!
It is through social media advertising, direct marketing campaigns, viral marketing strategies like hacking email lists etc., or other promotion sources.
As for conversion optimisation – that is all about getting prospects to convert quickly and at a lower outlay of costs.
The Expanding funnels are mainly in the services industry or low-priced, inexpensive products where a three-step concept is used below:
Step 1) Awareness followed by steps 2 and 3).
In this case, we have to track our lead all over time so that getting leads from page views (1st phase), purchase pages (2nd phase), email marketing campaigns etc., increases your conversion rates from your email marketing and/or landing page conversion. (3rd phase).
visitor hits a pre-designed website or waits for a sale to end by the product owner.
The web developer is responsible for adding a contact form of his choice that collects footers data, including name, email address etc.,
page of the product owner, tracking page views with Google analytics and PayPal.
In this case we have to track all your mailing list subscribers and click-throughs on cart pages; social media activity can also be tracked like Facebook pagers etc.,
The footer information is saved into an e-commerce account such as WooCommerce Cloud account that has all related histories.
From there, updates are made from time to time through planned emails or calls by the site owner.
A high-level funnel visual represents visitors' engagement with your website. It looks like an inverted pyramid and shows the percentage of visitors moving through each stage in the funnel.
That's all for now! See you later with a different topic! Till that, keep the conversation going in the comment section below.
