Why lead generation funnel is important in 2021 for online business
Lead generation funnels and why more online businesses should be implementing them.
Any successful B2B business thrives on continuous flow of leads. How a water stream is alive due to water similarly B2B business run due to regular flow of leads.
What is a Lead Generation funnel?
Lead Generation is a process of accumulating list large number of prospects, analyzing and nurturing them into leads and eventually into customers. Due to its slopping shape which tapers at the end of process it takes as a shape of funnel from which it derives its name. In the article you will learn what and why lead generation funnel is important in 2021 for every business.
In order to understand different stages of Lead generation we need to map the customer’s journey which leads to purchase of a service or product. The model which best explains this process is AIDA. Awareness—Interest—Desire—Action.
Awareness: is the initial stage where the prospect is made aware of the service/product.
Interest: The prospect may have a need of the service/product or it might be fulfilling his desire/need or want. This prompts the prospect to search more information and he/she researches further about it.
Desire: This is the stage when customer has developed deep emotional connect with the service or product and is exploring option to choose from. In this stage brands offers value proposition to their prospects.
Action: The prospect has already chosen few prospective vendors and is looking to choose the right value fitment. Here call to action and urgency is created by businesses which result in purchase.
Above stated customer’s journey is also key factor in determining different stages of lead generation funnel, namely
Top of the Funnel (TOFU)
Middle of the Funnel (MOFU)
Bottom of the Funnel (BOFU)
Top of the Funnel (TOFU): This is the widest mouth of the funnel and here businesses are prospecting, attracting and inviting likely prospects. In customer’s perspective this stage denotes awareness. The goal here is to gather as many contact details. Blasting emails, advertisements etc are associated actions in this stage. Businesses are expanding there reach online and with it the traditional methods are being replaced by online methods and platforms. You are prospecting through emails, Search Engines, Content marketing, Listings, ads etc.
Middle of the Funnel (MOFU): In this stage you have contact details of your prospect and you start engaging them and nurturing them into a qualified lead. At this stage the customer is interested and engaging, Online businesses engage their prospects through service/product videos. The prospect is nurtured with continuous touch points through mails, newsletters etc.
Bottom of the Funnel (BOFU): The customer has expressed in your service and product and is looking for a value proposition to take action. Here your hardcore salesman come in the picture who convert leads into paying customers. The value proposition can be shared in multiple ways through free use for a limited period, discount and good deals. The interested prospect would then likely become your customer.
Why lead generation funnel is important in 2021 for Online Business.
We all now know why lead generation funnel is important in 2021 for online business. As we have seen how customer’s journey and sales cycle go hand in hand understanding both is key to implementing successful lead generation funnel process.
1) Distorted Funnel shape due to high attraction & low conversion
For Online businesses the shape of this funnel is much wider on the top and tapered at the bottom due to open nature of internet where the options are available in large numbers. In order to maximize their revenue cycle and keep their sales force engaged they need to prospect harder as the leakage is greater.
Generating leads has become easy converting and sustaining them has become difficult. For online businesses whether B2B or B2C there are free flowing leads
from search engines once you had put a sustained effort on your search engine rankings. However, success with email marketing, affiliate marketing, influencer and content marketing cannot be sidelined as they form the major chunk of your lead source. (Why lead generation funnel is important in 2021)
2) High Competition
The Competition is ever high and increasing. In order to survive and establish your business you would require a continuous fodder in form of prospects and leads to convert into paying customers. Without a proper sales cycle and lead generation funnel in place the leakage would be much higher and results dismal, stressing on fact why lead generation funnel is important.
3) Lack of loyal Customer
Gone are the days when you had loyal customers, we are living in communication age where we are ready to switch wherever there is a change in value proposition. More and more loyal customers are switching vendors at their convenience, having a regular supply of prospects can help you negate this effect and keep your account books healthy. In order to build your business and keep your account registers ticking it is important we understand and implement lead generation funnels in our business and if your are a online business then it is a must to understand why lead generation funnel is important in 2021.
Hope this article would help you understand why lead generation funnel is important in 2021 and must for any business and especially for online businesses.