Reeve Yew is the master of building of sales funnels that turn prospects into actual customers. He has extensive experience in this particular aspect of digital marketing, having worked with international clients across different industries. Today, his company, Funnel Duo Media, helps businesses create a tailor-made sales funnel based on their unique requirements. According to Reeve, sales funnels remain one of the most misunderstood concepts out there. He goes so far as to say that marketers who don’t know how they work are putting their business at a tremendous disadvantage.
- What’s the goal of a sales funnel?
Reeve explains that creating a sales funnel is all about attracting the right audience and making them convert. He makes the analogy to a science experiment many people are familiar with: water distillation. You might remember pouring murky water into a funnel with a filter and then seeing clear water make it out to the other end. A sales funnel works in a similar manner.
You can think of the murky water as all the leads that reach out to your business. The filter makes up the different processes that help you convert those leads into customers. Finally, the clean water is the qualified prospects that have made it to the end, ready and willing to purchase your products or services.
- Crunching the numbers
To make things easier to understand, Reeve offers the following example. Many of his clients leverage email marketing to reach out their target audience. Over the years, he has created multiple campaigns, many of which involve sending out webinar invitations.
Reeve once initiated an email campaign involving 50,000 leads, 5,000 of which opened the email. 1,000 proceeded to click on the invite link, but only 400 signed up for the webinar. Of those, 100 attended the webinar and at the end, 10 of them asked for a demo. 2 leads ultimately rought the product.
Do you see how the leads moved through each stage of the sales funnel? Out of 50,000 prospects at the top of the funnel, only 2 leads made a purchase at the very bottom. While that might not sound like much, you should look at the bigger picture and factor in your return on investment.
According to Reeve, the beauty of sales funnels is that it gives you an accurate sales forecast, improves conversion rates, and enforces accountability. Looking back at the example, if you spent $300 for the entire campaign and the 2 purchases amounted to $800, that’s still an excellent return on investment. You’ve more than doubled your money even if only two people purchased.
- Simpler Marketing
Reeve has seen this kind of result time and again, but he says that it isn’t uncommon to see much higher conversion rates. Because of this, he was able to utilize sales funnels to scale the business of his clients as well as his own. By knowing that you can at least double your investment, for example, you can launch another campaign in the future and accurately depict your sales.
Of course, it’s possible that things don’t work out in your favor. But as long as you have a sales funnel in place, Reeve says that you can still track your traffic sources, best-selling products, target demographic, and other pertinent information that will prove useful for future campaigns. Equipped with actual user data, your sales team will have an easier time creating marketing campaigns that have a higher chance of producing the results you want.