The Power of Product Funnels: A Proven Strategy to Skyrocket Your E-commerce Revenue
Are you tired of leaving money on the table and not seeing the growth you desire for your ecommerce brand?
It's time to take action and implement a proven strategy that can skyrocket your revenue, increase your average order value, and help counter rising acquisition costs.
Say hello to product funnels!
By using this marketing technique, you can guide your potential customers from mere awareness to making a purchase, step by step.
And guess what?
Most brands are not using it or not using it correctly! Customers see one product, check out and that's it! Which means you have the opportunity to stand out from the crowd and increase revenue two folds!
At NewHeidts, we've cracked the code and developed three proven product funnels that will help you achieve your business goals and grow to new heights.
The Know Like Trust Funnel will make your audience fall in love with your brand, the Core Product Funnel will help you sell, upsell and cross-sell, and the High Ticket Funnel will get those big-ticket offers flying off the shelves.
Are you ready to take your e-commerce business to the new heights? Then buckle up, grab a pen and paper, and let's dive into the world of product funnels.
The Know Like Trust Funnel:
Our first type of funnel is called the "Know Like Trust (KLT) Funnel". The KLT Funnel is a proven strategy that we use to help you establish credibility, build relationships, and gain the trust of potential customers. Our framework for this funnel is Inspire, Educate, Convert.
One of the main goals of this funnel is to grow your email list, which is a great way to increase traffic that you actually own. At the same time, you'll also be spreading brand awareness, sharing your message and establishing a deeper connection with a wider audience.
Here's how it works: first, you offer your audience something valuable, like a free guide, special discount, or an educational video to opt-in to your email and/or sms list. Or, you can entice them with a super affordable and valuable offer priced at less than $9. Another option is to create a challenge that is easy to complete and gives them a sense of accomplishment.
Once they opt-in or make a 'trip-wire' purchase, they will enter your "nurture process".
Your nurture process consists of having an automated "flow" of emails and SMS messages. We suggest having at least 5-7 emails in your automated Welcome Flow that are sent to your customers over the next 14 days.
This is when you really start to build a relationship with them by providing more value, educating them on your brand, and making further offers that are tailored to their interests. If they havent bought the 'trip-wire' offer, then the goal of this sequence is to get a potential customer to become a paying customer.
The most powerful way to build connection in this funnel is through video. Use video throughout the KLT funnel. We always suggest the Founder or CEO (aka you) of the brand create a short Welcome Video that the customer receives in the first email or that they see right after they opt in on the landing page.
Overall, the ultimate goal of this funnel is to get your audience to know you, like you, and trust you enough to buy from you. By consistently adding value and providing quality content, you'll be able to foster trust and loyalty over time and convert them into customers.
It's a win-win situation for both you and your customers!
KLT Example Funnel:
The Core Product Funnel:
The second funnel(s) is called Core funnels. These are the lifeblood of your business!
Core Funnels are a powerful way to bundle and sell your essential offer and all other products. When setting up your core funnels, consider which products work well together or enhance one another. You can easily integrate these funnels into your Shopify store or create stand-alone funnels just for these products.
The apps we use for building funnels out on Shopify are Zipify One Click Upsell & Zipify Pages
For funnels on Woocommerce/Wordpress, we use FunnelKit.
Here is how they work: first, you create your main irresistible offer. This is a product or bundle we know sells really well and that we can now use to attract a whole bunch of first time customers. This is know as a product-based growth strategy.
Then create a compelling product page and pre-sell page for it. Highlight Unique Selling Points, Photo & Video Reviews/Social Proof, Star Rating, Stats, Product Photos & Videos, FAQs, and sales copy that speaks exactly to your perfect customer.
Once a customer adds this product to cart and begins their checkout, they will enter your "upsell process".
The pre-purchase upsell you present is a one time offer (OTO) or bonus that can't be found anywhere else on the website. They can only get this offer exclusively through the pre-purchase upsell. Here are a few examples of possible upsells you can use.
Complimentary Products → w/ or w/o discounted one time offer
More of the same product → w/ or w/o discounted one time offer
Same design, different product
After they purchase, you will show them your post purchase upsell. This is a product or offer that is 2X-3X the cost of the original product they bought. This is what we called a Cash Multiplier. Even if it has a low percentage take rate, in can significantly increase Average Order Value, Lifetime Value, and Revenue.
Now these Core Funnels are designed to help you achieve a variety of goals.
First, you can grow the average order value by encouraging customers to purchase more products. By making more offers and stacking value, you can entice customers to buy more while still feeling like they're getting a great deals.
Two, you grow the lifetime value of a customer right off the bat! Having a high LTV customer off the first purchase increases your profit margin and first order profitability so you can reinvest and continue to grow!
Third, the core funnels can help you counter rising acquisition costs by increasing the value of each customer and improving the overall efficiency of bringing in new customers at breakeven number or even at a profit from their first order.
Overall, the goal of this funnel is to maximize your product-based growth strategy that increases AOV, LTV, and profit while bringing in lots of new customers. Once you have a core funnel that is optimized, the opportunity to grow to that new height is much more in reach.
Core Funnel Example:
The High Ticket Funnel:
The third funnel is called a High Ticket Funnel. If you are running an ecommerce store, these are still very powerful funnels to use that can skyrocket revenue and create incredible customer experience.
The High Ticket Funnel is designed to help you sell high-priced products, events or services, such as coaching or consulting.
Here's how it works: first, you create and offer for a high-priced product, event or service you would like to sell. Create this offer with the same mindset of making it irresistible!
This could be an exclusive product drop, an in-person VIP event, a custom made product, or even a service to which you can offer to customers.
For your pre-purchase and post-purchase upsells you can bundle other products you offer. Make these unique and once again ONLY available through this funnel.
Another offer you can present with the High Ticket Funnel or on the post-purchase upsell is a subscription service.
We always suggest brainstorming how your brand can incorporate subscription model into your business. These can fund your businesses growth like no other! This subscription can be with physical products and/or digital products! Costco was a subscription-based company that expanded rapidly thanks to their customer funded model with subscriptions!
This is a funnel that can help you compound growth and really take your business to a new height. Don't count this type of funnel out because it "just wont work for your kind of business." Change that mindset, because yes it does.
High Ticket Funnel Example:
And there you have it, the power of product funnels! Use these three to attract customers, build relationships, make bank, and GROW.
Just remember, it's all about the Know Like Trust Funnel, the Core Product Funnel, and the High Ticket Funnel. Get to know your customers, make them like you, and build trust with them. And if all else fails, throw in some irresistible incentives to seal the deal.
Start implementing these funnels. Never stop testing and improving your front end offers and pre/post purchase upsells as well. Once you hone into a high performing funnel, watch the cash roll in. Your e-commerce business will be booming in no time.
And who knows, maybe you'll even have enough cash to buy that private island you've always dreamed of or cash out and onto the next venture. Cheers to product funnels, making bank, and reaching new heights!