Case Study – The 5-Step Sales Funnel That Produced 412% Sales IncreaseBy Sharon Kinder on March 13, 2018
Reading Time: 8 minutes
This is a case study of MaryHongArt.com, an online business specializing in selling ShardWorx art kits.
Before we started working with Mary Hong, she was frustrated with her sales. After carefully looking into her business processes, we decided to shift her focus to a larger hobbyist market. We worked on her branding, sales message, and built a custom 5-step sales funnel, which looked like this:
Below, we’ll walk you through the 5 main pieces of this sales funnel that drove her revenue to a 412% increase over the six months after we employed the system.
We cover this topic in depth in our post: $0-$1 Million: Evolution of an Online Sales Funnel.
Part I: Core Offer
For Mary Hong Art, our sales funnel started off like this.
Your core offer serves as the center of gravity for your sales funnel. It refers to the product or service that you want to sell, which ultimately becomes the focus of all your marketing campaigns. One of the reasons a business fails to grow is because they don’t have a compelling core offer.
These are the techniques you can use to create awesome core offer landing pages:
Niching Your Offer – As for Mary Hong, we used her expertise in ShardWorx, a new kind of mixed media art. Rather than targeting arts and crafts as a whole, which is a highly competitive industry, we decided to niche down to a product that she has become an authority in and where she could stand out among her competitors.
Include Sales Videos – Compared to written words, videos can capture the attention of a lead for a longer time, which in turn increases your conversion.
Make It Scarce – Limiting a product’s availability creates a sense of urgency. Because customers usually worry about missing out, it forces them to buy the item now.
Bonuses – Bonuses help increase the value of your offer in a customer’s mind. By including discounts, extra videos, and free E-books, you’re layering on value and building up your customers’ desire to purchase.
Branding – for Mary Hong, we upgraded her branding with high-quality graphics. Hiring a solid graphic designer is important to convey your site’s legitimacy. We also added her personal story throughout the landing page and shot a sales video showcasing her. Good branding increases customer awareness and provides a long-term benefit for your business.
Social Proof – lastly, customers feel more comfortable about buying a product that’s being vouched for by other customers as well. This is why we have referenced all written testimonials and publications that featured Mary Hong’s products.
Check-out our core offer landing page: https://maryhongart.com/marys-glass-collage-starters-kit-2
Part II: Lead Magnet
A lead magnet refers to a freebie that you can offer to your visitors in exchange for their email. Examples of lead magnets include free E-books, white papers, coupons, raffles, webinars, and video courses. An effective lead magnet helps you convert visitors to leads and retarget them to your core offer.
The image below shows you where the lead magnet fits in.
For Mary Hong Art, we added a series of craft videos. These are sent out via an email autoresponder ending with a sales pitch.
Here’s an example of an effective lead magnet: https://maryhongart.com/free-tutorial-package-landing-page
Part III: Content
Once you’ve established your lead magnet, you want to continue building the relationship with your customers using high-quality content. It takes on average of 7 touches to turn a cold prospect into a customer who trusts you enough to buy from you. The best way to accomplish this online is by publishing great content.
Some examples of good content that you’d want to create are ultimate guides, infographics, blog posts, podcasts, and webinars. For Mary Hong Art, we focused our efforts on creating craft videos and new art kit videos that are fun and interactive.
Here’s an example: https://www.youtube.com/watch?v=usv1GxbN6UM
Part IV: Profit Maximizer
Profit maximization refers to the up-sale, cross sale, or any recurring transaction that maximizes your customer’s value and allows you to cash in off of all the work that you’ve built.
Your sales funnel should look like this once you’ve added your Profit Maximizer.
One of the best examples of an effective profit maximizing strategy is Amazon’s “Frequently Bought Together” suggestions. With a click of a button, customers can book all items at once into their cart, which increases Amazon’s revenue.
You can see profit maximizers everywhere. The candies at grocery store checkout lines, the parking fees you pay at events, and the upsized meals at McDonald’s are just a few examples.
For Mary Hong Art, we set up an up-sale by sending buyers coupons for their second purchase. Our goal is to use the Starter Kit to create the customer then continue marketing art supplies to feed these customers’ new hobby.
Part V: Tripwire
A tripwire refers to a low-cost offer that is typically placed after your lead magnet in the sales funnel.
This image depicts how your sales funnel should look like with the Tripwire added in.
One of the advantages of using a tripwire early on is that it lets you get cash back more quickly to pay for new leads, allowing you to scale faster. By offering your customers an incredible deal, it allows you to build a larger list of targeted buyers. Because your offer poses such a low risk even for new customers, it allows you to build a relationship with your customers, and even market to them regularly.
One of the best examples of a Tripwire offer is from GoDaddy. They will sell domain names for only $2, which is too good of an offer to refuse. This probably even loses them money, but then goes on to sell hosting and email packages.
Another classic example is Microsoft’s Xbox. While Microsoft often sells the console at a loss, they are able to make more from game royalties.
Doubling your sales within a short span of time is no easy task, let alone achieving a 412% increase. There will always be a ton of effort involved and a few roadblocks along the way before you achieve your desired results. This custom 5-step sales funnel is designed to make sure that you’re putting every minute of work and spending every penny towards the right direction.
Being successful in your marketing endeavors does not always result from having the most effort and the biggest financial investment, but from understanding what goes inside your customer’s head and using that to gain a mutual benefit.