book.chapter Principles of funneling

While the digital landscape may seem vastly different, the core strategies of direct marketing remain effective both online and offline. It's the underlying mechanics of your sales funnel that are crucial. Direct marketing is a time-tested approach. Traditionally, direct marketers would place classified ads prompting individuals to call a toll-free number for a free report. This report, often a sales letter in disguise, would market a low-cost product. Upon purchase, the customer would receive another sales letter for a more expensive product, and the process would continue. The online sales method mirrors this approach. Online businesses offer freebies to gather contact information for ongoing marketing. Instead of phone calls and physical reports, prospects receive emails detailing offers to pique their interest. Over time, they are introduced to a series of products, starting with inexpensive items and gradually moving to higher-value offers as trust and transaction frequency increase. The marketing tools have evolved: direct mail has become email, networking has shifted to social media, TV ads have transitioned to YouTube clips, radio ads to podcasts, and newspapers to blogs and websites. Yet, the marketing fundamentals remain unchanged: Identify your ideal customers, as targeting everyone is neither practical nor efficient. Develop buyer personas for those who will most value your offerings. Determine where to find these customers. They are already congregating somewhere online, and that's where you need to be to capture their attention. Decide on the right "bait" to attract them. This could be a book, CD, DVD, or audio recording—something they would be eager to receive. Define the outcome you want to provide. Be clear on the value you aim to deliver through your products or services and where you want to lead the customer in their journey with you. Customers are unlikely to make a large purchase initially; they prefer to start with a smaller transaction to gauge value. As they perceive value, they naturally progress to higher-ticket items. Therefore, it's essential to create a value ladder with a range of products, each step offering more value at a higher price. A continuity program, such as a membership site, ongoing coaching, or software, adds recurring value and revenue. For instance, a dentist might offer a free teeth cleaning consultation, then suggest teeth whitening for $100, retainers for $1,500, and eventually propose $3,000 worth of cosmetic work, along with regular checkups at $60 each. Similarly, online businesses should construct a value ladder leading customers to higher-value online offerings, starting with a free item if the customer pays for shipping, and progressing to more expensive products as the relationship develops. A sales funnel is essential because it not only allows you to provide value at various service levels but also helps you remain profitable while identifying clients who can afford your most premium offers. The funnel guides potential customers through your sales sequence, from initial contact to repeat purchases, offering free items as bait and selling packages at different price points throughout the funnel. This systematic approach ensures that every product sold online is supported by a sales funnel, with upsells offered immediately after purchase and various communication funnels to foster relationships and encourage further sales.