In the world of small businesses, you often hear about the 'lead generation funnel.' But even though it's a common term, some people still aren't sure what it really means or how it can help their business grow. If you missed our last blog post on lead generation basics, you might want to check it out here. This guide will build on those basics and show you how to use the lead generation funnel for your business.
What Is the Lead Generation Funnel?
Think about a real-life funnel—wide at the top and getting smaller at the bottom. The lead generation funnel is similar but in a business way. It's a step-by-step process that starts by attracting a lot of people (the wide top of the funnel). It then guides the interested people into becoming potential customers (the narrow bottom). This journey from start to finish is why the lead generation funnel is so important for any small business.
The Parts of a Lead Generation Funnel
A lead generation funnel generally comprises four key components: Awareness Asset, Resource Asset, Delivery Asset, Nurture Asset and Sales Asset.
Awareness Asset
This is how you drive people to your funnel. Whether it’s social media, paid ads, or your email list, it’s the way you get eyes on your offer.
Resource Asset
This is your freebie, the resource that you’re offering in exchange for an email address or other contact info. It should be valuable and enticing enough to get people to take action.
Delivery Asset
This is how your resource gets into your audience’s hands—typically via email automation. It’s the process that ensures your freebie gets delivered to them smoothly.
Nurture Asset
Once the freebie is in their hands, this is how you stay in touch and continue to nurture that relationship. Think follow-up emails, additional offers, or valuable content that keeps you top of mind.
Sales Asset
All roads lead here. This is what you’re ultimately selling—whether it’s a product, service, or consultation.
Why the Lead Generation Funnel is Important
Understanding the anatomy of your lead generation funnel is critical for a couple of big reasons:
First off, it ensures you send the right messages at just the right moments. For instance, Picture Perfect uses its Traffic Assets like Instagram and Google Ads to attract potential customers and direct them to their Selling Asset – a landing page featuring a free downloadable resource. But it doesn’t stop there.
Next, it helps identify and rectify potential drop-off points. According to a 2020 study by Hubspot, a whopping 96% of website visitors aren't ready to buy. But, here's where a well-crafted lead generation funnel can make all the difference - it nurtures these visitors into ready-to-buy prospects. If you find that many visitors are falling off the radar at a particular stage, it's a clear sign something needs tweaking. Like, if a significant number of potential customers are leaving Picture Perfect’s resource landing page without downloading the free resource, it's an alert for them to reevaluate and improve their Selling Asset.
But the journey doesn’t end when a customer downloads a free resource – this is where the Follow Up Asset comes in. Picture Perfect stays top of mind by sending an automated sequence of emails through their Delivery Asset – in this case, Mailchimp. These emails not only share valuable information about Picture Perfect but also build a deeper connection with potential customers. And when they’re ready to buy, they’ll know exactly who to turn to.
It's this effective orchestration of assets that can turn a lead generation funnel from a simple concept into a powerful driver of business growth.
Conclusion
Understanding the lead generation funnel may seem a bit tricky, but it's a huge helper in growing your business. It's a step-by-step guide for turning curious visitors into dedicated customers, which means more sales and more growth. In our next post, we'll dive deeper into what makes a downloadable resource irresistible.
Does reading this blog make you want to level up your business? Let's huddle up and work together to get your business into victory formation!
