A sales funnel is a visual representation of how prospects move from awareness to interest to action. It shows where the most qualified buyers are coming from and where they're going.
In this post, we'll look at a few examples of a sales funnel. We'll see how it works and why it's important.
I've created a free template with a sales funnel graphic to help you visualize your own funnel. This will make it easy to create your own funnels.
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For anyone that doesn't know what Netflix is
It's an online streaming service that allows people to watch movies and TV shows for free.
The company has over 100 million subscribers worldwide.
They have been growing rapidly since their launch in 1997.
Their business model is based on subscriptions. They offer unlimited access to content for $8 per month.
This means that if someone wants to watch a movie or show, they can sign up for a subscription and stream as many times as they want.
Netflix sales funnel is a 7-stage sales funnel that attracts visitors with the lead magnet being a 30-day free trial offer.
It gets this business through a sales funnel.
Here are the seven stages of the Netflix sales funnel:
Let’s have a closer look at each stage in action.
The first stage of the Netflix sales funnel is its landing page. In this case, Netflix uses its website homepage for its landing page.
Netflix keeps the landing page simple yet with a clear, bold headline that emphasises the benefit that you can attain by using the service.
Using effective copywriting, Netflix keeps the page very simple with a clear, bold headline for its free 30-day offer. Netflix also makes it clear that you can cancel anytime. And, that it will send you a reminder.
They also use the four top benefits listed below to increase the likelihood of converting the lead. There is also a list of frequently asked questions for those with any concerns.
First, Netflix highlights that you can enjoy its service on your TV as well as a range of TV-related devices.
Secondly, Netflix informs you that you can also download shows to watch them later at a suitable time.
Thirdly, Netflix points out that you can use its service on multiple devices and not be tied to a single device
Netflix also mentions profiles for kids. This feature will be added bonus for parents as their kids will be able to watch kids-friendly shows on Netflix as well.
Netflix knows that its sales funnel visitors will have questions and concerns. So, it answers the most common ones upfront. This makes to break some common objection that a lead might have and push them to take action and get started.
This landing page is really good. It offers a great deal with no risk. It also increases awareness, generates interest, and creates desire on just one page.
Clicking on the Get Started button takes you to the second stage – the plan introduction page.
Instead of taking you straight to its pricing page, Netflix use a optin page to get your basic details like email and password first. Creating an account will signal a higher intent to access their service and will avoid spam. It is also important for another reason that we will see in a short while.
In the fifth stage of the funnel, you create an account. Netflix only acquires your email address. Keeping this request simple and on a new page increases the chance you will stay in its funnel.
Next Netflix shows a plan introduction page. It reminds you that there is no risk during the trial, you will be able to access everything on Netflix and that you can cancel anytime thereafter.
Netflix knows that if it shows you the costs right after a free offer, most leads will leave the funnel. By doing this, Netflix is able to soften the price impact.
Now Netflix is able to build trust with you through this page.
Clicking on the Next button takes you to the fourth stage of its sales funnel – the plan pricing page.
In the third stage of the sales funnel, Netflix makes it easy to compare four packages. By default, it pre-selects the Premium plan to maximize cart value. But you will be able to select any of the other three lower-cost options based on your preference.
Clicking the Next button takes you to the next stage of the funnel – the create account introduction page.
In stage five of the sales funnel, Netflix asks you set up your payment method that will be used after the free trial. In this illustration, you have four options.
Similar to previous stages, Netflix works to soften the effect of giving your payment details. Once again, it reminds you that you are not bound and that you can cancel at any time.
Choosing an option takes you to the final stage of the funnel – the payment details page.
Here Netflix collects your payment information to be used after the free trial. Your membership will now start and you can use Netflix's service.
Netflix has succeeded in making you want to act again. Doing so, it gets another conversion. Even better, Netflix now has a new lead who is going to be a paid subscriber within 30 days.
If you leave the Netflix sales funnel at any stage after giving your email, Netflix will reach out to you to remind you to finish signing up.
Here is an example of one of its standard reminders sent to you within 24 hours.
Netflix is now reminding you of a less expensive option to get you to finish signing up.
Here, using a different type of welcome message, Netflix welcomes you back again and asks you to complete your sign-up. When you click the red call-to-action button, you're taken directly back into the sales funnels where you can complete the sale.
The Netflix sales funnel is a great blueprint on which you can model your own funnels.
Here are some reasons why it works well:
If you're looking for some ideas for creating effective marketing funnels, the Spotify Funnels page is a good example of an effective conversion from visitor to customer.
Here, we’ll walk through each stage of the Spotify sales funnels.
Let me show you how the Spotify Sales Funnel actually functions and also tell you why this is a good example to follow when creating your own sales funnel.
Spotify is a digital music, audio streaming, and podcasting service that lets you listen to thousands of songs for free. Spotify uses a freemium model which means that there are two types of users: Free and Premium.
Free users have access to all features except ad-supported radio stations. They can play as much music as they like but only hear ads between tracks.
Premium users have unlimited access to all features including ad-free radio stations.
Spotify uses a sales funnel to convert free users into premium users.
The Spotify sales funnel is a 3-stage lead magnet sales funnel with email marketing for upsells.
Spotify attracts visitors to its sales funnel with a free streaming music offering.
Spotify then guides users to pay for premium services using a series of simple sales funnel pricing and payment pages.
In this sales funnel example, we’ll guide you step-by-step through all of its stages from a visitor’s perspective.
Most importantly, we’ll look at:
If you haven't heard of Spotify before, searching for "stream music" in Google might list Spotify at the top of the results page.
Because it has good search engine optimisation (SEO) built into its site, Spotify ranks high in searches for many other digital streaming media-related words or phrases.
When clicking on these search results, you're taken directly to Spotify's landing page for music streaming services.
This is one of the ways that Spotify fills the sales funnel
Let's analyse the landing page. It’s an excellent illustration of how to write effective headlines and offers for websites to grab your customers' attention
In this case, the landing page is super simple. There is only one call to action, Get Spotify Free, to get started. This acts as Spotify's lead magnet
Like Netflix, Spotify listed a few features and FAQs to increase awareness, desire and interest for their service while handling early objections.
Clicking on the button takes you to the next stage of the sales funnel – the sign-up page.
On their landing pages, Spotify doesn't ask for your email address directly; instead, they use a separate form to collect some additional information.
Keeping the form on a separate page increases the chance you will stay in its funnel.
After submitting the form, you're redirected to their thank you page.
The Spotify download page has a very simple thank you page. It tells you to click an install link to complete the installation.
You don't need to download the desktop application to use Spotify. You can listen to Spotify through its web browser interface too.
You're now able to listen to its free music service either way.
It wasn't too difficult. You've gone through the first step of the Spotify funnel. Now let's move onto the next one.
You went from being an unknown person on Google to a user of its products. As for Spotify, they now have a new lead.
Spotify is great and is adding value to your life. You are enjoying listening to and streaming music for free.
As for Spotify, you are now a new lead, someone to who they can begin to market their premium paying service. The way they bring this conversation is by using email marketing.
After registering, you get a series of lead nurturing messages from Spotify. In this case, they start off by giving you three months of their subscription for free.
For newbies, these sales funnel emails serve as an excellent illustration of how to write effective emails for your business. They're simple, colourful, and convey each offer quickly and easily.
Spotify doesn't bombard you with many e-mails. It's also good at reminding you when an offer is about be up for grabs.
Here is another example of an email that it sends you at the conclusion of the offer.
You don't mind the ads but dislike them when they interrupt your music listening experience. Some of your favourite songs aren't available on the basic plan either.
With your knowledge of a better service that is worth paying for, you decide to upgrade to that service. Three free months seems like a good deal for you.
Clicking on the call to action button in the emails takes you to a sales funnel upsell landing page.
The Spotify sales funnel provides a good example of how to create a successful sales funnel for any business.
It works because:
Okay, this one was coined and used by Russell Brunson but now this model has become widely used by other marketers as well.
Russell is the author of several books, DotCom, Secrets, Traffic Secrets, 108 Proven Split Test Winners. These books popularized the concept of sales funnels.
Russell Brunson is also the founder of Clickfunnels. He created this funnel to help his clients sell their products.
This funnel is also known as the tripwire funnel.
You first begin by offering a low-ticket trip wire product for sale at a price range between $5-$50.
Tripwires are examples of what the word "trip" means in business: getting someone to take just one small step to trigger a larger series of actions.
If the customer makes the decision to buy from you, he or she will visit the checkout page. Then, if they decide not to buy, you still have a way to capture their email address:
After your customer purchases your product, you send them an email offering them a special deal on another item they might be interested in buying. This is usually a high-priced item, priced between $500 and $1,000.
You can either immediately mail out this high-priced offer to customers who bought the lower priced item or wait 24 hours before sending out an e-mail campaign.
If you're selling an expensive item, use marketing automation to nurture leads.
Send them an email at the conclusion of the nurturing sequence, offering them a high-value product or service.
If they choose to buy from you, you redirect them to their product page, let them finish the transaction, and then send them a warm thank you email.
But the best part is that even if your client complete the checkout, they're still on your email list because of their original order. So you can reach out to them for any future offers for anything you think that would be valuable to customers’ while creating revenue for your business.
Once you've set up your tripwire for success, you're guaranteed to win every time.
Here is a tripwire template that shows how the funnel works in its entirety:
Tripwire funnels are so powerful because they do 3 things to move your business forward:
1. Pay for Themselves
A good part of a tripwire marketing funnel is that it costs nothing. Because you should set your initial low-ticket offer so that it covers the advertising costs required to attract new leads.
If you're getting lots of organic traffic from content marketing, then your low-ticket offer would be worth the cost of the tool you use to create your sales campaign.
This basically means that just a single purchase of a low-ticket offer, can potentially cover the cost of your content creation for the whole month
Regardless of which type of marketing funnel you use, the best tripwire funnels always cover their own costs.
2. Grow Your Marketing List
One of the reasons tripwires are so effective is that it helps to grow your email list.
After your lead makes their first low-cost purchase, you’ll now have a new lead for your entire automated marketing sequence. From here, the possibilities are endless.
Next, once someone has made an initial payment from you, they're much more likely to make another one later on.
3. Boost Your Sales
Tripwire funnels generate more sales than any other funnel type. They're not just good at generating leads; they're actually designed to convert them into paying clients.
Imagine you have the following offering:
Let’s say your marketing strategy attracts 500 people per month to your site. From there, 25% take up the lower-priced offer at RM10. That’s RM1,250 per month just to get things rolling.
Out of the people who opt into your irresistible offer, 5% decide to buy your high-ticket offer instantly. That’s another RM5,000 of revenue for the same month.
If you’ve been doing the math, this simple tripwire funnel has now earned over RM6,250. If you subtract a generous RM1,000 for marketing tools and advertising fees, you’re still at RM74,000 in profit per year from one easy-to-build tripwire funnel.
None of this takes into account the inevitable revenues you’ll generate from future product releases by building an email subscriber base.
In conclusion, the sales funnel model is a tool used to analyze and improve marketing strategies. It helps us understand where our leads come from, which channels work best, and how to convert prospects into customers. By understanding the different stages of the funnel, marketers can create better content, optimize their websites, and even track conversions.
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