The "Sales Funnel"

If you have ever done sales before in an organization of more than one, you have most likely heard the term "sales funnel".  No, it is not something used to pour liquids into a small opening to prevent spillage, but it is a way to pour money in your bank account.  Understanding of this concept will help your online group succeed financially.

The sales funnel refers to the sales cycle, or process or taking a cold prospect and turning him or her into a customer.  It is called a funnel because you start with your biggest audience, or market, and throughout the process a percentage will "move through the funnel" until a smaller percentage will end up as customers.   The key is to guide each person through the funnel and not cause them to drop out of the funnel.

One of the most common ways to cause a potential customer to either drop out of the funnel, or never enter your funnel in the first place, is by asking too much of them.  For example, if you push a prospect too hard towards a sale when they are clearly not ready, you could lose that prospect for good.  Another way to lose a prospect is by asking them to complete a form which they feel is too long or too invasive.  When a prospect is not ready to commit, asking for personal information can cause them to bolt out the door (figuratively speaking).

With iGrOOps, you as an administrator, have several tools at your disposal to facilitate this sales funnel.  Let's look at a possible sales funnel for an online group:

Web Surfers / Total Market >> Browsers of Your Website >> Newsletter Subscribers >> Limited Access Members >> Full Access (paid) Members!

Of course, it would be nice if the surfers stumbled on your website and became paid members right away, but that does not always happen.  Most of the time, it takes a little work.

Here are some suggested steps to facilitate this process and turn your market into paying customers.

1. Get qualified prospect to your group site.  The more qualified they are, the more efficient this entire process will be.  And in the case of most type of advertising, the more qualified the target audience the cheaper it will be for you per paying member.
2. Ask for a small commitment.  You do NOT want browsers of your website to leave.  After all, they most likely cost you some good marketing dollars.  Ask for their name and e-mail address but make sure you give them something in return!  This is what the newsletter feature is all about.  If prospects are interested in what you have to offer, many of them will be OK with giving you basic information such as a first name and e-mail, providing they are confident they will get valuable information in return.
3. Stick to your word.  Your newsletter subscription box sold them on becoming a subscriber because you promised them something of value.  Make good on that promise.  Send the prospects the information they are expecting and more.  Within each communication, mention a benefit or two for moving to the next level -- membership to the group.  Again, be careful not to ask too much too soon or they could unsubscribe.  If all of your e-mails are nothing more than sales pitches dashed with a little info, you will find that you have a hole in the side of your funnel.
4. Divide your iGrOOp into two levels of membership: limited access and full access.  Carefully think about each application and what kind of access each  of the member levels will have.  You need to set it up so it is worth it for newsletter subscribers to become limited members, and it is worth it for limited members to become paid members.
5. Go for the close.  Every so often, send an e-mail to your limited access members with a special offer, or just simply asking them to upgrade their membership to a paid membership.  Let them know the benefits they will get for taking that final step.  Make it so tempting, that they cannot resist!

This is a process that could take days, weeks, months, and yes... even years.  Some people will stay at the top of that funnel and never sink to the bottom, like some guy you just off'ed and had to "take care" of the body, but your "associate" messed up on the cement shoes (sorry, been watching too much Sopranos).  But for every floater, there is a prospect that bypasses the funnel entirely and becomes a paying customer on day 1.  Amen for them!

Have faith in the sales funnel and keep it running like a well-oiled machine, and within no time, you will be reaping the rewards.

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