Take your budget to its full potential with full-funnel marketing. Impact every step of the funnel and dramatically increase your ROI.
Many brands use online marketing, content, and SEO as lead generation tools for sales teams. If you’re one of them, and you ‘re still using this old approach, means you don’t fully take the extremely beneficial advantages of the super-powerful abilities available to marketers today. Harnessing the full-funnel marketing approach enables marketers to control the entire sales funnel and use conversion rate optimization to increase the ROI and drive more sales.
What is full-funnel marketing?
Full-funnel marketing is an advanced marketing approach that doesn’t separate the “lead”, or sign-up stage from the rest of the website sales funnel, and considers every step of the funnel, from prospective visitors to paying customers as a part of the marketing efforts. The Full-funnel marketing approach takes into consideration today’s technology abilities and marketers opportunities to impact each step of the funnel. It is now possible to optimize each step of the funnel by taking data-driven decisions and handling people in each step as a different audience, who require different messaging, pricing and targeting.
To simplify, imagine the process your customers are going through as a funnel. the first touch is the top of the funnel (TOFU), which can be the first visit to your website, or a sign-up. Next is middle of the funnel (MOFU), which is the process people go through in your sales funnel, like adding a payment method for example. Last is the bottom of the funnel (BOFU), where your sales funnel ends.
The full-funnel marketing approach requires marketing teams to make the funnel as “narrow” as possible, enabling people to reach the bottom of the funnel more easily.
Full-funnel marketing & Conversion rate optimization
With full-funnel marketing, your marketing team can and should optimize the entire sales funnel, making smart, data-driven decisions along the way.
To optimize the entire funnel, the data of each step of the funnel should be segmented and optimized. No matter where your users are coming from, you should know why they have, or more importantly have not, progressed through the funnel. Optimize each step to get more people through to the next step.
This process is termed CRO or conversion rate optimization. A/B test each step of the funnel, using the data to increase your overall conversion rates. Any improvement in a step through the funnel can make a huge difference to your overall results. CRO can be achieved through a different headline, a different call to action or simply a different color of a button. It’s amazing how even a small element can alter your conversions rates and increase sales.
For example, let’s say you have 100 people at the top of the funnel. 50% proceed to the middle of the funnel, which now contains 50 people. 20% of this progress another step forward, reaching the bottom of the funnel, totaling 10 people. Assuming you spent $100 to acquire these 10 customers, your cost per acquired customer is $10.
Now imagine you have optimized the middle of the funnel by changing the call to action or the button color, and you have improved it to a 30% conversion rate. Of the 50 people, 15 will make it to the bottom of the funnel. You have now spent $100 to acquire 15 customers, which reduced your cost per acquired customer to $7!
keeping this optimization and improving every step of the funnel by A/B test everything, will eventually result in a significantly higher ROI and faster growth.
How to use full-funnel marketing with paid traffic?
1. Find the right people
When done correctly, online marketing is the most effective way to spend your marketing budget by reaching the right people with the right messaging. No matter what you are offering, any major online advertising channel – Facebook, Google, Twitter, LinkedIn – has great targeting capabilities to help you show the right ad to the right people.
2. Segment your visitors
As an online marketer, you are probably familiar with remarketing and how powerful it can be. You can, however, do much more than just use the common remarketing lists, such as targeting visitors in the last 7 or 30 days, people who haven’t visited recently etc. With the full-funnel marketing approach, you can segment your remarketing lists even further to create various remarketing lists to contain people in each step of the funnel. For example, you can create the following lists, according to the first example:
A. All visitors who haven’t signed up: A simple remarketing list containing all website visitors, excluding those who signed up.
B. People who signed up, but haven’t added a payment method: Create a remarketing list that contains anyone who signed up, excluding those who added a payment method.
C. People who added a payment method, but didn’t make a purchase: Create a remarketing list of all the people that added a payment method, but haven’t yet purchased.
D. People who made a purchase in the past: Finally, create a list of people who purchase in the past, but haven’t purchased recently, as described in this image:
Now, simply take your own website funnel, and segment it as such. Each of these lists will dynamically contain people in each step of your website sales funnel. Let’s say I visited your website and left without signing up, I will be added to the A-list. If I returned to your site and signed up, but did not add a payment method, I become part of the B-list. Had I progressed in the funnel and added a payment method, but haven’t made a purchase yet, I fall into the C-list.
This detailed segmentation improves targeting, which will be explained next.
3. Target people by their current stage in the funnel
Once you have wisely segmented your remarketing lists as explained, you can target people according to their stage in the funnel. People should be treated differently at each step of the funnel, with varied targeting, bids, and budget, and then optimize each step separately.
For example, People in list C are worth a higher bid and more optimization than people in list B, since they exhibited an intention to purchase by adding a payment method, and are much closer to the bottom of the sales funnel and become a paying customer. The same goes for the people in list B, who are worth a higher bid and more optimization than people in list A since they progressed to signing up, as opposed to people in list A who just visited your site, without taking any action yet (and possibly immediately bounced you to irrelevant on their Google search).
4. Show the right ad at the right time
A very important part of the full-funnel marketing approach is showing the right ad at the right time. Each remarketing list contains people in a different step of the funnel, and the way to encourage their return is displaying an ad appropriate to their current step. Remember that people are dynamically moving forward between the lists according to their actions on your website.
For example, people in list A need to see an ad that encourages them to sign up. People in list B should see an ad that will trigger them to make a purchase by adding their payment method.
Full funnel marketing with Email campaigns
Email marketing can be conducive to reaching new audiences but is most effective through drip campaigns. Email drip campaigns are actually very similar to the strategy of paid traffic in full-funnel marketing.
Using Email marketing for drip campaigns entails emailing people according to the different steps of the funnel, which means you are actually segmenting your audiences and reaching the highest possible level of optimization, resulting in improved results. Through the use of MailChimp or a similar tool, it is easy to segment your mailing lists.
People in each step of the funnel get different emails to encourage them through the next step.
To explain this let’s use the same audiences as we did in remarketing lists. If I signed up and I’m in your B list, I should get an email that will encourage me to go back to your site and proceed by adding a payment method. If the last Email succeeded in getting me to add a payment method, but I haven’t yet made a purchase, I have moved to your C list, which means I should get an Email encouraging me to purchase.
Shifting your marketing strategy to a full-funnel marketing can seem slightly threatening or overwhelming at the beginning, especially when there is a complex sales funnel, but it’s actually a simple process that, once integrated, is a convenience to marketers. Ful-funnel marketing help brands increase overall ROI, by faster and smarter optimization of the sales funnel.
Please note that using full-funnel marketing doesn’t mean you should dump your sales team, it just simplifies the way to close deals and doesn’t leave you reliant on salespeople to acquire customers.
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