The 5 Stages of Funnel Analysis In a Delicious Cup of Joe
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Funnel analysis is used to map out the journey a customer goes through when making any kind of purchase or engagement.
The reduction of users or leads at every point in the funnel is known as the “Decay Rate”. Focusing on the decay rate at every stage of your funnel will help you identify what is working and what is not.
Sometimes people ask us here at Cieden about funnels and why we say they're so important.
I'd love to go through that with you...
As software users or sales leads navigate through the predefined journey, only a portion of them typically reach the final intended step. Mapping this drop off of people at every stage creates a visual that looks like a funnel.
Funnel mapping and analysis can be used in many different ways but the principles are always the same...
Software and product designers view funnels through the lens of user journeys, evaluating the drop offs within an intended flow in the product.
Marketers typically use conversion funnels to measure how their different initiatives introduce people to a brand and nurture them along to making a final purchase or reaching out.
Sales people see funnels as the perfect way to visualize and manage their pipelines to ensure a steady flow of business.
Okay, so now that we know some of the basics, let's head on over to our company's Coffee Lounge to dig deeper into how funnels work for business, and how some of those same principles are used to create a delicious cup of joe
With coffee, the quality of ingredients that you start with is probably the biggest factor in getting the taste and consistency you want.
If your coffee ends up watery and tasteless, something clearly went wrong with your process or ingredients.
I'm sure you've heard this phrase before, and it totally applies to funnels! Since poor quality leads will absolutely lead to poor sales and conversions, it's important to focus on attracting the right type of people from the outset to avoid wasting time and energy on efforts that will only lead to headaches. And yes, poor quality coffee beans lead to awful sad cups of coffee.
Just like our coffee, we need to know the quality of customer or user types we'd like to introduce into the top of our funnel. For example, if we are looking to sell dog food, then we should probably only market to dog owners.
We all prefer some types of coffee to others, but do you know what your preferred coffee actually is?
There are so many choices out there now, so it’s likely you haven’t even tried your ideal roast yet.
People are precise about their coffee. Some like it strong. Some like it weak. Others love it piping hot. Depending on how you like your morning cup, different measurements and steps are key. If your measurements are off, then the final product may not be up to par.
There are many ways you can encourage customer activity, such as re-targeted content, an easy-to-navigate site with contact forms, or by direct contact. Keep them engaged and bubbling, providing value and keeping things interesting.
Just like the temperature of the water you use to make your coffee, and how warm your final brew remains, you have to get your lead’s temperature just right. Are your leads warmed up sufficiently to move on to the next stage of your funnel? If not, why not? Something is amiss and perhaps some more excitement and warmth could be just the fix. You may be mixing too many leads, coming on too strong, not tending to them well, or not producing strong enough content.
If all of your measurements are precise, your coffee is now starting to brew
The brew smells so enticing. It's almost time to pour that fresh cup!
If you've executed the other stages correctly, your content has built a great presence, you offer a solid service or product, and you have answered every question; Just like your coffee, your offer is looking really enticing to the client.
The prospect is paying more attention to what you offer, including different packages and options, so they can make the final decision to purchase. This is when you encourage your prospect to become a customer with sales offers, through sales pages, webinars, calls, etc.
Your coffee should now be fully brewed, robust, and ready to be served.
When a customer feels the risk is great, you need to highlight how great the reward is. Retention is always more cost effective than acquisition. You do this by nurturing the customer for more engagement and creating a positive feedback loop.
Great Job! The prospect is now a customer. Be sure to nurture your new customer through their entire purchase process, or provide on-boarding tools, and knowledge to set customers up for a lasting relationship.
Just like sweetening the experience of the perfect cup, you must go above and beyond to keep the relationship with your customer sweet.
Enhance their experience with great service, delivering a great product, and fixing or repairing any reason for dissatisfaction.
It’s up to you as the brand to make sure the customer is delighted. If at any point they’ve been dissatisfied, it’s also imperative to find out why and repair whatever could be broken.
Connect with and learn from customers. Uncover new solutions and methods to help them achieve more success. Keep them excited and reward them for choosing you.
There's more to the perfect coffee experience than just what's in your cup. Comfortable chairs, a cozy fireplace, good music playing, and maybe even a doughnut or two will truly enhance your experience.
You've now learned the basics of how to nurture somebody through a funnel, whether it's a new business lead or current customer using your product.
We get it. This might seem confusing. Feel free to schedule a call with one of our experts and we will be happy to help.