Understanding The Sales Process, Funnels, Up Sells, Down Sells, Cross Sells
Introduction To The Sales Process
Understanding the sales process in principle is essential before being able to comprehend what is the online sales process or process of conversions.
A sales process flowchart or process map can be produced to represent the conversion process stages and can be adapted depending on the number of stages of the sales process.
A sales process template can be produced and adapted depending on whether there is a 5 steps sales process, or alternatively a 7 steps sales process (typical conversion process examples are shown below), or sometimes even more, up to 9 stages.
For example, simplified sales sequence examples are shown below:
An Example of the 5 Step Conversion Sequence is Shown Below:
An Example of a 7 Step Sales Sequence:
These diagrams explain that a purchaser may not purchase on the first or even second contact with a supplier, in fact it may take up to 7 or even 9 times before a prospective purchaser is ready to make a purchase, having researched the market, evaluated options, and familiarized themselves with your offer, and also most importantly built sufficient trust with your brand.
Sales Funnel Definition
The definition of Sales Funnel is a Process into which a purchaser is enticed into the mouth or entrance to the funnel usually with a low(er) value product and is offered various other products as Up-Sells, Down Sells, or Cross-Sells before they exit the sales funnel.
The Sales Funnel usually starts with a Lead Magnet such as a free offer, for example, an ebook, or downloadable information, which is offered by a vendor in return for which a potential purchaser enters their email address. This initial transaction provides the contact details for the vendor to inform the potential purchaser of offers in which they may be interested.
The potential purchaser goes through four stages prior to concluding a purchase:
The definition Upsell means the offering of another higher value product in a Sales Funnel, usually after an introductory offer has been made by the vendor and accepted by a purchaser.
As an example of upselling, an Upsell in the context of a restaurant business would be the offer by MacDonalds Fast Food Restaurant of french fries and a shake, in addition to their basic offering of a burger.
The purpose of the Upsell is to increase the profit margin on any Sales Funnel. Usually, the initial or Doorbuster offer has little or no profit margin, whereas the Upsell has a greater profit margin. The net effect of the initial offer plus the Upsell is an increased profit margin.
The definition Downsell means the offering of another lower value product in a Sales Funnel, usually after an introductory offer has been made by the vendor and accepted by a purchaser, and a subsequent Upsell has been declined.
An example of a Downsell would be to offer an item such as a Low-Cost Personal Computer instead of a High Specification High-Cost Personal Computer. The purchaser´s credit card details have already been entered and the first purchase has been completed, the Downsell is a final attempt to increase the value of purchases before the purchaser exits the website.
Cross Selling Definition
The definition Cross Sell is the selling of an additional product or service to an existing customer.
So in this scenario, the customer is not new, there have already been sales previously so a certain level of Trust has been established between the vendor and purchaser.
The effort or Sales Intent is to increase the value of orders by selling additional items to the existing customer.
Sales Funnel Template Examples
Here are some real examples of Sales Funnels Templates Showing ¨Doorbuster¨ offers, Upsells and Downsells which you can adapt and use as templates for your own sales funnels if you wish.
Sales Funnel Template Example 1
Sales Funnel Template Example 2
Sales Funnel Template Example 3
OMS Conclusion And Recommendation
In order to succeed at making conversions, you need to fully understand the whole process of how to market your products and services, to the right audience, and how to encourage prospective purchasers to move from a state of unawareness about your product to sufficient trust to make the commitment to buy.
This is related to Branding, and this is the subject of a separate post.