Explore the stages of a funnel for HighTech with airSlate SignNow

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hello and welcome to today's lesson where we're looking at the marketing funnel and the journey from stranger to customer so the purpose of a marketing funnel which you'll sometimes see referred to at the purchasing funnel or a sales funnel is to illustrate the hypothetical journey a customer takes in going from someone who knows nothing about a company to a customer of that company so basically a marketing funnel is designed to Curren leads into customers now the idea is that the marketer shows their advertisements to a broad array of their ideal potential customers and then nurtures those leads slowly over time through the funnel reducing the number of potential customers at each stage of the funnel until eventually those leads that arrive at the bottom of the funnel become customers now the concepts you'll learn in this video applies equally to both the online and the offline world so let's begin by looking at the classic marketing funnel which I'm sure most of you will already be familiar with now Before we jump in I should state that this funnel is for illustrative purposes only there's no such thing as a marketing funnel as you can see it in this diagram there's only a series of interactions people go through with your company and with other companies as they make their way from being a complete stranger to a loyal customer so in short every single marketing funnel is unique so the stages of the hypothetical model are as follows so awareness and that's where someone notices your business or your offer or your advertisement interest where they are finding out a little bit more about you during a bit of research evaluation where they're looking to see if your business is credible if you're real if you look like you're trustworthy if other people have had a good experience with you finally there is trial where they decide to do business with you in some small way and that's the bottom of the funnel is adoption and that's where they finally decide to jump on board and become a customer now it's worth noting that how much a company will be prepared to pay to turn an unknown prospect into a customer will very much depend on the lifetime value of that company so you have like customer to business so to layer up our funnel slightly another dimension to consider is the time customers are prepared to devotion to interact with the company at each stage of the funnel this is basically we're going to look at our funnel and considering time now as you can see people initially have very little time for you as you're just another voice amongst thousands of voices competing for their attention now as they start to investigating further they begin to devote more and more time however once they've evaluated you and they trust you they start to dedicate less and less time to you now it's important to understand how the time dimension impacts on your marketing it can be really tempting to bombard prospects with information as soon as they express an interest in you and it's easy to see why companies do this as they want to show you know everything that they're capable of but remember that isn't what people want as they go through your funnel so as an example rather than initially founder of prospect a huge case study once once you've piqued their interest perhaps it might be better in Italy to send them just a single page containing a bullet point list of results you've achieved for others now true that might take just 30 seconds for them to digest but it actually gives them what they want to know not what you want them to know and if they like what they read or what they see and they can start to take it a bit further and evaluate you a bit more now another way to think about the time dimension is to consider if you're connecting prospects with the right information at the right time so if you're using case studies are they just sitting there on your website or would it perhaps be better to send a couple of case studies that can be digested in under five minutes and to new prospects automatically three weeks after they first expressed interest in you so adding this time dimension just gives you another way to think about are you doing the right kind of information at the run point in your funnel so now it's time to add our final dimensions to the funnel and those are emotion and logic and our emotion and logic are inversely related as the person boost through the funnel and you need to change your messaging based on how people's emotion and logic change and interact as they move through the funnel now as a really simple example you should begin at the top of your funnel by using a motion to capture their attention so maybe they see in a certain way or they identified with others that feel a certain way but then once you have their attention you need to use logic to show them that you're good at what you do and you can address you know the wants and requirements that they have but once you've done that finally to seal the deal and to make them a customer you need to go back to using emotion emotion is a powerful tool in getting prospects across the line once they've reached you know the penultimate stage of your funnel so now that we understand you know the basics of marketing funnel theory let's take a look at a couple of examples so in this example of an online funnel we're going to consider a weight loss firm that displays their displays their ads via Facebook now in this example that ad is nothing more than an image of a smiling man holding up a t-shirt you know that obviously several sizes too big for him the implication is obviously that the man has lost lots of weight using this company now that ad equates to the awareness part of our follow its simply trying to grab attention and get people to click on it and when they do a 15-second video plays of the man explaining how great the company's program is and it's at this point you know we're still in the awareness part of the funnel now at the end of the video an offer is presented to enable the prospect to download occasionally and that's going to tell the story of 100 previous customers who've been super happy with the company and lost lots of weight during their program and to download the case study all the prospect has to do is enter their email address so once they've entered their email address they're now in the evaluation stage of our funnel where they potentially read that case study browse the company's website and they start to receive regular emails from the company then after a few weeks the prospect receives an email explaining that they can trial at service for one month for just $1 now at the end of the month they'll be taking on to the regular subscription price for $49.99 nine but they can cancel their subscription easily any time in that first month but they get to try the whole thing for just one dollar now signing up to the trial provides the prospect with a very low barrier way to try the company and at that point our prospect enters the trial part of our funnel now if at the end of it at the end of the month they are enjoying the company service and they're happy with it and they move on to the full price subscription and at this point there are full customer and they've entered the adoption part of the funnel now notice how this happens automatically in this bottle without the customer having to do too much and that makes sense because at this stage in the funnel they're choosing to use the firm because they like the firm and they're making an emotional decision so they don't have to invest too much time and that correlates with what we were talking about previously about how much time people are covered to give us and whether they're making a logical decision or an emotional decision so right at the bottom of the funnel they're going to have too much time to give us and they're more making a emotional decision than a logical one so let's move on to another example so this time we're going to look at a real world example examples so for this example imagine a real estate company that prints in an ad for their services on a piece of card now on the piece of card it doesn't say much about the company but simply shows some of the houses the companies sold locally and the prices that those houses have achieved now obviously the card also contained a link to the company's website should the prospect with wish to find out further information about the company now these cards are then posted through the letter boxes of everyone who lives where the best buyers are for this business and that is done you know every single look now at any given point in time probably even less than one in a hundred people are ready to sell their house but by sending these mailings out consistently month on month over a period of years the company is building top-of-mind awareness and that's the first level of our funnel they're building that top of mind awareness but when the prospect is ready to sell even if that takes five years or more now notice how the cards contain very little information and that's because people won't invest much time in the company at this stage of the funnel and notice how using house prices the firm has achieved in the area tries to emotionally connect with the homeowner now the link to the company's website provides a way for the house owner to get further information about their services and that's obviously the interest section of a funnel and here as they're prepared to invest more time they can research the results the firm have achieved their average sale price for avid sell time etc etc and you know at this point the website also offers a no obligation totally free evaluation now if they pursue this valuation that's going to take the customer further down the funnel into the evaluation trial phase at this point they're offered the opportunity to market their property on a no-win no-fee basis now the homeowner will have already done their research on the company and so this is a relatively frictionless offer where no money exchanges hands and it's an easy way to meet the home owner further down the funnel to the trial phase now obviously once the house is sold and the homeowner is in the process of moving the homeowner finally becomes a customer and they move to the final phase of the funnel the adaption place so an important turn to term to understand when learning about marketing funnels is conversion rate now a conversion rate simply defines how many of one thing become another thing now in terms of our marketing funnel this could mean how many people who clicked on an ad become customers or it could mean how many people who had a consultation then went on to become customers now as you can see in the diagram we have a complete example and you can see here that the total cost for a simple advertising campaign was $2,300 and a campaign received 2300 clicks so that's one dollar per clicks now of the 2300 people who clicked on the ad 230 expressed an interest by entering their email address in exchange for a download so that gives us obviously a conversion rate of 10% now at this point the company nurtured these leads and offered them the opportunity to attend a webinar and again 23 prospects attended this webinar so again that's a conversion rate of 10% from the people who enters their email address and obviously the cost at this stage is $100 per webinar attendee now of those people who attended the webinar or signed up for a trial and that's conversion rate at 17% and finally one of those or people went on to become a customer conversion rate of 25% and you can see that the total cost to acquire one customer is dust 2300 which matches what we've spent on the whole campaign so I hope seeing both the examples from the online world and the physical world and also seeing the figures associated with a marketing funnel campaign give you a real sense of how these marketing funnels work in practice so in summary the classic marketing funnel shows the hypothetical journey a customer goes on as they move from being unknown to a company to being a customer the key to understanding marketing funnel theory is to realize that at each stage of the funnel some customers are going to be lost but others will be nurtured one step closer to becoming a customer now every business will employ a marketing funnel and that includes you know everything from the corner store to Apple it's just that the complexity of the funnel is going to differ from one company to the other now because every funnel uses funnels to some degree it can be useful to have a basic understanding of marketing funnels regardless of whether you happen to work in marketing or not so that's it for me I hope you felt found this lesson really really useful and I look forward to speaking to you again soon