That conversation got me thinking about how we’re shopping today.
You might have already heard that the internet is changing the way we shop. With just a wifi connection and mobile device, we can purchase anything from electronics and clothing to food and services. Now more than ever we aren’t going to the mall or even shopping locally as much as we used to. Instead we’re spending more and more time on our phones shopping from the comfort of our own home.
We all know this. But…
Did you notice how people are now finding new products to buy online?
If you thought that simply having a website would be enough to sell your products, you’re wrong.
The internet is also shaking up the way consumers are making buying decisions from what they read or watch on YouTube, Facebook and Instagram.
Just look at the recent trends.
In my lifetime, we’ve gone from video cassette tapes to DVDs to digital products. We’ve gone from telephones to cell phones to smart phones in under 3 decades. We’re now seeing a shift away from search engines like google to social media. The way internet users interact on the internet is rapidly changing.
Previously, you’d want to build your e-commerce website so it ranked higher in Google’s search results. Now every business is trying to build a bigger following over Social Media or paying influencers to pitch their products.
Now you might be thinking “Am I being left behind?” The good news is: no.
This trend is still developing but what we’re seeing now is while in the past you would have needed a large online store filled with many different products to make money. That is no longer the case. All you need is a handful of successful products.
One page websites selling a handful of products are becoming much more popular nowadays because of social media. If someone clicks through from an ad or a video on social media, what they want to see is an easy way to purchase their desired product. Advertisers are making this easier for customers to buy by creating simple one page landing pages like this one below to sell their products:
Then, after a purchase is made, they might offer add-ons or upgrades to really maximize profits! This also means it’s easier to measure the success of your advertising campaign, and quite simply, it’s what is working really well right now. I mean think about it. When you see something you want to buy on Facebook and go to the website where the product is supposed to be. If it’s difficult to purchase or if the purchase instructions are unclear, you scroll away, right? If it’s easy, clear and you can see the product you’re getting, then obviously you will be much more likely to go through with the sale.
So if we understand that this trend is happening, why is it so important to create a sales funnel instead of a full website?
There are three main reasons.
1. Consumers have more choice than ever before:
There has never been a time in history where consumers have had so much power in their hands. You can virtually order from anywhere in the world and, in most cases, within a few days your product will arrive. I was talking with some friends the other day about how their shopping habits had changed. They couldn’t remember the last time they went to the mall. In their words:
“Malls have all of the same stuff in every one of them. They are boring. Online you can find much more unique and interesting products.”
2. Consumers are more impatient than ever before:
Video watch times are going down. There is more competition for users’ attention than ever before and consumers know it. Companies are constantly bombarding consumers with messages and it means that you have less room for error when it comes to directing a visitor’s attention.
3. It has become more important than ever to maximize the amount of money you make per visitor:
Maximize $$ per consumer because advertising costs are only increasing – an engaging sales funnel is your best weapon against this. Think about it: the more money you can make from your sales funnel, the more money you have to put into advertising. The better your funnel converts compared to your competition, the faster your business will grow because the more money you have to spend. A high converting funnel can literally be the difference between securing market share for a product you’re pushing versus losing out.
So, what’s the good news we can take from this?
If you want to compete in this new space, you don’t need to create and list hundreds of products on your website. All you need is a few very specific products, a message in your sales funnel that grabs your audience’s attention, and you can become a millionaire! That’s what is so exciting about this generation of consumers!
Today’s consumers are watching lots of videos and engaging across Facebook, Instagram & YouTube. Advertisers have noticed that they now need to be on video to reach audiences on these different platforms and so are creating videos in an attempt to reach their potential customers.
Because we’re now having to compete with many more advertisers targeting becomes extremely important as well as getting peoples attention. What we’re seeing now is a wide range of engaging videos that advertise products in an interesting way. We could almost call a ‘sales documentary’ style.
We’re also seeing companies advertise individual products. The reason is that unlike traditional advertising, where you’d have a variety of customers window shopping at your physical store, today’s customers are spoilt for choice. They don’t have the patience to scroll through your online store and look at your various products, because there are literally millions of stores online selling all kinds of different products.
So how do you reach them?
Well you need to direct your audience’s attention to just one thing. One action. You can do that through showing a product you have identified they might have an interest in – such as a T-shirt, a jacket, a piece of Jewellery, a free presentation teaching them something, or a downloadable strategy guide. Just. One. Thing.
Picture this: as a customer scrolls through their Facebook newsfeed or browses Instagram, your single product catches their eye. They click through to find out more and make a decision based on what they see of your product.
Let’s look at two popular and likely scenarios:
Scenario #1: You’re running a watch company. You advertise one of your watches on Facebook. You grab the attention of one particular user over Facebook and they click through to the page selling your watch. The user might then make the decision to purchase the watch. When they do, you capture their email address and they become a customer of yours.
Scenario #2: You’re an expert in business and you are advertising a book that you are giving away. All your new visitor has to do is purchase shipping and you’ll send out the book to them. You advertise your book over Facebook. As visitors interested in getting your advice click through and decide to find out more, a percentage of them purchase shipping to have the physical book sent out to them. When they do they become your subscriber.
These are two basic offers that happen frequently in today’s online market. A consumer is most likely to buy another product from you immediately after making that first purchase. So, if they purchase one product from you, that is the hottest time to sell them another. Especially if there is some kind of combined shipping deal involved. If they are going to buy from you, they are going to have to buy from you immediately or it’s less likely that they are going to come back in future.
This is where your sales funnel comes in. A sales funnel is the best tool you have for maximizing your sale and increasing your profit margin (so you can spend more on ads), and it’s the fastest way you’re going to be able to grow your business.
So for our two scenarios, here’s what you’re going to do now:
Scenario #1: Once a customer makes a purchase we’re then going to immediately recommend them an additional accessory that goes along with their watch. A common upgrade might be a spare watch strap they can use with their watch, or a watch band that’s a different colour. You advertise this as an accessory at a discount as part of a ‘package’ when they buy the watch. You might even have another upgrade option for that customer, something like a watch holder case for home where they can store their watch safely.
Scenario #2: Once your visitor has purchased your book, you then advertise a congruent upgrade. This might be an online video training series or membership. It could also alternatively be an upgrade to be sent another book you’ve written in the past at a discount.
Can you see what we’re doing? We’re essentially customizing our users’ experience based on what they will be more likely to buy. This is why a sales funnel is so powerful.
A sales funnel has the ability to effortlessly maximize the amount of money you can make by taking advantage of your customer’s interest in your product.
This becomes really important when you’re spending money on advertising. The reason is because the more money you make the more money you have to spend on more advertising. A sales funnel gives you far more opportunity to identify how well your products are appealing to your target market, make changes. Most importantly when you are making money and your sales funnel is working as it should. You then have more money to reinvest into advertising to acquire more customers. This grows your business much faster.
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