WHAT IS A MARKETING FUNNEL?
Marketing funnel is a visual tool used to break down the customer journey for your small business/product in an easily understandable and scalable way. This allows you to measure and predict patterns within your marketing campaigns and make adjustments to maximise your returns.
At JSL Online we use marketing funnels to help advise and support our clients to help them maximise their returns on their marketing budget.
HOW DO MARKETING FUNNELS WORK?
By producing a visual representation of marketing methods using sector or company specific metrics we can help to streamline marketing campaigns for small businesses. So that they can focus on what they’re good at.
Using a program called Geru we can simulate possible click through rates (more on this later) and reach (views of your content) a post or ad on social media may have, by using industry and brand specific averages. You then have the forecasted results of a given campaign and can work backwards on what can be easily influenced to improve results, and what is an inefficient use of time and money.
WHY A MARKETING FUNNEL IS IMPORTANT FOR SMALL BUSINESS?
With a smaller business usually comes a smaller budget. Maximising the return on investment (abbreviated to ROI) is a must for maintaining profitability on a smaller scale. Marketing funnels help small businesses do this by helping to focus their sales channels and the sales methods used.
A small business may use Facebook advertising to increase their sales. Depending on variables such as their average click through rate (the percentage of clicks on a link generated from views of content containing the link e.g an ad, that leads someone to the desired page), the average click through rate (abbreviated to CTR) in their sector and the reach of their ad, this may not return enough on their investment. Using a Marketing Funnel to simulate the projected advertising spend and sales you can help determine whether or not the advertising spend is worth the investment, and also help to make required changes to the ad or landing page to help increase it’s CTR and in return sales of products/services.
USING A MARKETING FUNNEL FOR YOUR SMALL BUSINESS
So you’ve created your own marketing funnel, or hired someone to create one for you, and you can see the potential revenue/outcome, what do you do now?
By inputting your small business’ specific data into the model you can predict the scale at which the ROI would be profitable. You can also focus your marketing campaigns into specific avenues.
Let’s say you have an email newsletter campaign, and your business’ sector has an average of 18% of email recipients who open the email, and a CTR of 5% from there. For every 1000 emails sent you’ll have gained 9 views on your sales page. If you have an optimal landing page that drives the value of your product and sells it well you may gain a 40% purchase rate from your CTR. This would be approximately 3 purchases. This would be per 1000 email views, so if you send 1000 emails to customers (who have already shown an interest in your product/service by signing up to a newsletter) every week, you’d gain 156 sales for the year.
Not a bad return on the low cost of an email newsletter. Depending on your product/services’ sale price, this may result in a sizable return for a small cost of investment, optimising income and expanding reputation allowing you to focus on other areas of your business. Creating automated emails that can be sent at certain times around a peak sales period to promote a limited offer can massively help promote your business and increase sales as well.
Hopefully you’ve gained a bit of insight into how a marketing funnel can help you and your small business thrive. It’s a fantastic tool, and although not difficult to use, can be time consuming to create. We offer a service where, for a fair and reasonable price, we can create a funnel for you, using company and sector specific data to help us simulate your funnel accurately. Thus allowing you to see where your time and efforts are best placed, especially during the early stages of your business where time is at a premium. From there we can help advise you on digital marketing and social media campaigns to help drive your sales, and can also help to set up these key areas for you too with our dedicated team.
Thanks you for reading, if you have any questions you can contact us on our website jslonline.co or engage with us on social media.