Monday Meeting: Purchasing Funnel

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Monday Meeting


AGENDA: Purchasing Funnel (B2C)

DESCRIPTION:

A purchasing funnel is a theoretical structure describing the consumer journey from awareness to purchase.

WHY USE IT?

Purchasing funnels are theoretical, so why the heck create one? A few quick reasons; test your assumptions, improve customer experience, increase purchases.

With a structure in place, you can create and run tests (see A/B testing article for one type of test) to see what assumptions are correct, and incorrect, about the journey from consumer to customer.

As each step of your funnel is tested, the feedback shows what the consumers want. So, if you are listening, you can improve the experience for each consumer.

If the experience is beneficial for a consumer, they will become a customer, increasing your purchases.

 
 

HOW TO USE IT?

There are four fundamental levels to a purchasing funnel; awareness, interest, desire, and action. Since a funnel is theoretical, let’s ask a question for each level:

  1. How does the consumer discover my product?

  2. How do I know a consumer is interested in my product?

  3. How does a consumer show me they desire my product?

  4. How does the consumer purchase the product?

For example: Consumers can buy prints from Dalton Johnson Media

  1. How does the consumer discover my product?

    A few different ways; social media, email list, website, advertising, publications

  2. How do I know a consumer is interested in my product?

    They make their way to my print store on my website

  3. How does a consumer show me they desire my product?

    They have clicked through the prints and added some to their cart, or they contact me for specifics

  4. How does the consumer purchase the product?

    They purchase the print through my site or by request

TWO COMMON MISTAKES?

1) There are HOLES in your funnel. Each hole is a way for a customer to leak out the side of the funnel, never to be found again. To fix this, apply some tests to solve some of your assumptions.

2) Lack of specificity. If a funnel is not well defined, then you will have holes. Be specific and focus on the experience of going from consumer to customer.

MY THOUGHTS…

Creating is fun! Take the time to sort out the details of a funnel, so you can improve your customer service and convert more sales. With each iteration of your funnel, you will understand your product and consumers better. If you can visually display your funnels, your employees will be able to understand the journey clearly and concisely, which only adds to your efficiency. Leave you with a final quote:

“Failing to plan is planning to fail”

-Benjamin Franklin