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Why Do You Need a Funnel for Your Business?

Does only a funnel solve all the burning issues in your business? Can’t we succeed without a funnel?

I want you to imagine a picture with me: how your business will look if you develop a funnel for it.

• You will get a good flow of all types of customers.
• The cost of customer acquisition will be greatly reduced.
• The lead flow will be improved.
• All stage leads will be catered to, and you will have a good sales flow pipeline.
• It will help you streamline the customer journey.
• It would be great for marketing and sales alignment.
• The funnel will provide you with great scalability and automation.

I was in deep trouble when I wasn’t using any marketing funnel for my business.

Does Every Business Require a Funnel for Their Marketing Campaign?

The short answer is YES

What Does the Demand Generation Industry Say About Their Data?

Here’s what the data reveals:

1. HubSpot: 48% of marketers are focused on enhancing their sales funnels.
2. Markin Blog: 570,000 websites utilize at least one type of sales funnel-building technology.
3. Demand Gen Report: 47% of consumers now spend more time researching B2B purchases.
4. Wordstream: The average conversion rate for landing pages stands at 2.35%.
5. Unbounce: Pages with a single call-to-action achieve an average conversion rate of 13.5%.
6. Unbounce: Pages featuring social proof content have an average conversion rate of 12.5%.
7. Wordstream: In e-commerce, the typical conversion rate is 1.84%.
8. Yotpo: User-generated content can boost a website’s conversion rate by up to 200%.
9. HubSpot: 69% of marketers prioritize converting leads or contacts into customers.
10. Ascend2: 54% of marketers plan to increase engagement through email.

Questions to Consider About Demand Generation Funnels

1. What things come to your mind when it comes to demand generation funnels?
2. What are the different stages of your sales funnel?
3. What are the benefits of using a sales funnel?
4. What are the key components of using different sales funnels/demand generation funnels?
5. How do you measure the success of the sales funnel?
6. What are some common mistakes to avoid when creating a sales funnel?
7. What are the best tools to create a sales funnel?
8. What are the best traffic sources to drive this funnel?
9. How do you qualify the leads from this funnel?
10. What products can we upsell or cross-sell?

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What Burning Issues Can a Sales Funnel Solve?

There are many problems in funnel creation, but if we understand the exact problems of your users, the right solution will help you. Here are a few problems for your reference:

1. Poorly Defined Audience: A poorly defined audience will not help in your funnel journey. For the funnel to run smoothly, you must choose the right audience, niche, and offer. If you go with the right audience, more than 80% of your work is done. The rest is to implement the 20%.
2. Very Poor in Creating Leads: The sales funnel is all about creating leads and diverting them into your funnel. If you lack in creating leads, it would be very difficult to nurture and convert them. It starts with very basic criteria to make any funnel successful.
3. Not Focusing on Lead Nurturing: Lead nurturing is the oil of the sales funnel. If we don’t have proper lead nurturing campaigns, we will lose all our leads without converting them. But if we do it with the right strategy, we can convert them with good numbers.
4. Poor at Conversion: Poor conversion means there is a leak in the system. We can observe and fix it. Poor conversion indicates that leads are not qualified and lack the intent to purchase.
5. No Follow-Ups for the Lead: No follow-up is a big problem for your funnel. If you don’t do it right, all efforts will go in vain. To avoid leads becoming trash, you need multiple touchpoints and rigorous follow-ups. As per surveys, we need a minimum of 11 interactions and 7 touchpoints to convert cold leads into paying customers.
6. Ignoring Customer Feedback: Sales is a two-way process. If you don’t ask what you are lacking or what they exactly want, you will not improve your offer or conversion. Always ask what they like about your offer, product, and experience, and what they don’t like.
7. Inefficient at Measuring Performance: Poorly managed funnels often fail because decisions are based on guesswork rather than data points. Always use data to make improvements.
8. Non-Alignment Between Sales and Marketing: If you face issues with lead conversion, it’s not always a conversion problem—it could be a coordination problem between sales and marketing teams. They should act as one team rather than pointing fingers at each other.
9. Not Focusing on Customer Loyalty and Retention: It’s 5 times cheaper to retain existing clients than to chase new ones. Focus on turning existing customers into loyal brand ambassadors.

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What Sales Goals Can You Achieve with a Sales Funnel?

Revenue Goals

• Focus on increasing revenue through a top-down approach.
• Master the math of outbound sales to understand how many leads convert.
• Use a capacity model to align leads, appointments, and demos with revenue targets.

Sales Efficiency

• Set SMART goals to improve efficiency.
• Identify the Ideal Client Profile (ICP) to target the right audience.
• Foster cohesion between sales and marketing teams.

Lead Nurturing

• Use CRM tools to nurture leads effectively.
• Measure results periodically (weekly, monthly, quarterly).

Team and Tools

• Invest in hiring and training the right talent.
• Use tools like ClickFunnels, HubSpot, ActiveCampaign, and more.

Monthly Targets

• Break down revenue targets into achievable weekly, monthly, and quarterly goals.

Follow-Ups and Optimization

• Regularly follow up on sales opportunities.
• Optimize the funnel at each stage to reduce drop-off rates.

Win Rates

• Calculate win rates to evaluate sales team performance:
  Win Rate% = (Number of deals won / Number of deals pursued) x 100%

 

B. Awareness Goals TOFU ( Top of the Funnel):-

To increase the awareness of the product or service that you are selling one need to work on creating awareness and Demand of the product. Unless you work on creating the demand of it you will not be able to move further.

C.  Consideration Goals / Demand Capturing ( MOFU Middle of the Funnel):- 

In this stage, we consider the prospect and try to create content around the product and service.This will help you to capitalize the demand which you have created in the previous stage.

D.  Conversion Goals / Demand Nurturing( BOFU Bottom of the Funnel) :-

At this stage the we focus only on the Demand Nurturing or Conversion of the prospect.

 

What is your experience with the Demand Generation funnel?

In my own experience, every product or service needs a Demand generation Funnel. Or activity. But its more inclined towards the B2B segment.

As the b2b segment of product-based companies need a priority as the prospect is more educated.

He is well-informed and ready to spend his time and efforts before making any purchase decision.

 

The only Funnel your Product Needs to get sales Qualified Leads.

You have to check whether you get qualified or non-qualified leads but your product /service has to go through the funnel.

Your product or service only needs 3 stages funnel.

The old funnel which you use to work now doesn’t work.

The question here is why there is a need to create the Demand Generation Funnel when there is already one existing funnel ( Lead Generation) is available?

The answer lies in the evolution of Email marketing which started outbound campaigns in the year 1950.

People started reaching out to people with the email to sell their products and services. They feel that there is one thing missing.

Even if you are reaching out to the 

• right audience, 
• right offer and 
• right funnel.

But one thing was missing that was the Demand of the product. To get the conversion we have to create the demand. 

Without having proper demand we can’t sell to anyone.

There are two ways of it.

1. Either you create your demand and become the niche expert.
2. Or cater to the existing Demand by positioning something different.

As customers have become more informed, and educated, and taking decision on any service go through lot of comparisons, trust factors. And problems your funnel is solving.

In my opinion, you need 3 stage funnel.

1. Demand Generation
2. Demand Capturing
3. Demand Nurturing.

If you follow this 3 steps and implement everything which is mentioned above then you will land with sales-qualified Leads / Prospect.

Whereas Lead Generation Funnel will focus on only

• Make a direct offer to solve a problem of your prospect.
• Propose some direct benefit to their prospect.
• Present them with different types of gated Content.
• Focus on capturing leads without intent.

Instead of the Demand Generation funnel will focus on 

• Working towards making aware of the problem of your prospect.
• It mostly works on increasing the brand’s authority over other peers.
• It Promotes free resources and uses ungated content.
• Focus on generating quality leads with intent-based.

 

How one can create the Demand Generation Funnel

• Demand Generation ( Creation) – ( TOFU Top of the Funnel)

There are many ways you can create the demand of it. Yes off course some of them are Free and few of them are Paid channel.

Let’s understand which one they are.

Free Channel which can help you to create the Demand / Awareness-

1. Video ( Youtube, Insta, tiktok)
2. Podcast ( Solo, Interview Based, or Discussion)
3. Social Media Post 
4. Blogs
5. Ebook
6. Guest speaker / Post /
7. Webinar
8. Newsletter
9. Live events
10. Guest Speaker

Paid Channels-

1. Display Ads
2. Guest Post
3. PR Campaign

 

2. Demand Capturing:- ( MOFU Middle of the Funnel)

All the customer who are looking for solution are checking your work on different sites.

Few are listed below.

• Demo of your Product.
• Offer a Free Trial
• Make a good compelling offer.
• Share similar case studies.

But to achieve this below are few ways where you can generate this leads.

There are some tactics that we use to capture the demand.

1. Search engine marketing
2. Display ads
3. Display retargeting
4. Review sites
5. Pricing pages
6. Dedicated Demo Pages.

3. Demand Nurturing:- ( BOFU Bottom of the Funnel)

There are multiple ways you can create the conversion or Nurturing goals for the product/services.

But here i am listing a few ways where you can do the nurturing the leads.

1. Create the intent-based follow-up.
2. Give them a good pre-onboarding comparison.
3. Create a good retargeting campaign.

Here i am sharing some advanced ways to get the nurturing going and land with the customer.

1. Interactive Product tour which can tell what the service and product does.
2. ROI Calculator
3. WoW moments from live demo or free 1-1 call.
4. Video case studies.
5. Video ungated content.

This strategies will going to help you convert and nurture with your prospect.

There is no sale without creating Demand.

You have to understand that there is no sale possible without creating the demand of the product/services.

1. Check if there is already demand is there of your product / Services and try to come up with a good positioning strategy.
2. If the category is new then go all in for creating demand for your product. Be consistent while creating it. It would require at least 6-12 months for the new brand or product. Be focused on creating brand / Product-related demand.
3. This rule applies in all spectrums be it B2B, B2C, D2C or any other.

Only Sales Funnel You Need?

Yes , you heard it right. This only sales funnel you need.

If you want to sell anything to anyone you need only this Demand Generation funnel.