Growing Business through Customer Funnels
Marketing has an important role to play in ensuring that the business is driven aggressively yet with the minimum expenditure. It is extremely important that the company identifies the correct set of customers for whom selling the products or services is utmost important. Companies try to identify the most relevant target audience, who will buy the products as they have the maximum need for the same. Though there are several methods of identifying customers, catching & targeting “interested” customers can generate easy revenue for companies. This can be done by evaluating and studying customer funnels.
Customer funnels are an important way of identifying consumer behaviour at every step before purchase. Companies can maximise their revenues by understanding customer funnels, and then targeting & pitching them products personally. Customer funnels give the target audience who are interested in making a purchase but for some reason opted out. Since the need is there, these customers can be contacted and can be addressed at a personal level.
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Let us understand the customer funnel journey and how it can be beneficial. Consider an e-commerce platform selling digital cameras. Assume that close to 1000 customers visit the camera page every day out of which 200 customers read all the product details. We can clearly see that these 20% customers have shown an inclination of knowing more about the product. Off these 200, 50 customers select the purchase or add to cart option. Hence, the 150 customers who dropped out, despite understanding all product specifications, chose not to select this camera. But still are prospects and are considering buying a camera. Eventually out of the 50 customers, 20 purchase the camera. Hence, overall only 2% customers bought the camera. But the dropout customers in the journey are prospects and hence can be targeted proactively.
While customer funnel approach is efficient in generating additional revenues, it is important to track the right parameters as well as have a short turn around time, else either the customer will lose interest or purchase another product. For this companies must have realtime data available which can be actioned upon proactively. This is where big data analytics can play an important role in following a customer journey and identify the customers dropping out from the customer funnel. Identifying dropout customers proactively through a customer funnel journey can give a ready base of customers who can be targeted for a quick sales.
Customer funnel also filters out the audience which are less interested in buying a product or service. This enables companies to focus on important customers and channelize their energy on converting dropout customers to buyers, rather than approaching each & every individual. A selective approach to target a filtered audience not only helps in better conversions but also reduces unwanted costs. Hence this increases the ROI through more sales at lesser costs.
Hence customer funnel is an efficient approach is evaluating the customer journey & identifying prospective customers who have dropped out of the customer journey. This way is extremely effective & can help generate incremental sales and help grow business.
