No matter the size of your business, investing in strategies to attract and convert more customers within your business development funnel is essential for growth. However, with limited resources, you need to be savvy about where you allocate funds in your sales and marketing funnel to maximize return on investment (ROI).
Before determining where to invest, you need crystal clarity on your business goals. Consider the metrics most important to your growth and revenue - do you need more leads, conversions, or to increase customer lifetime value?
Understand your target audience’s pain points and motivations. Align your goals to addressing those needs.
Next, analyse the performance of your current sales funnel. Look at each stage - awareness, consideration, conversion - and collect data on traffic, engagement, conversions, costs per lead/sale etc.
This audit identifies gaps in the development funnel, inefficient processes, and where customers are falling out of the sequence. You also determine areas providing the greatest return, and those needing improvement or resources.
With this information, you can model ROI for future investments to address weaknesses and build on strengths.
Not all marketing channels will efficiently convert for your business. When investing, first focus budget on the channels providing the best return.
SEO, for example, requires an ongoing time and resource investment, but over time can deliver a steady stream of qualified traffic. Similarly, optimising processes to convert more website visitors into leads or sales is high ROI.
Evaluate emerging channels as well. Social media requires a lower cost investment compared to traditional advertising and, when done well, can yield great brand awareness and inbound leads.
It can be tempting to try to capture customers across every digital platform. But it’s better to master one or two channels than spread efforts thinly across many low performing areas.
For example, build traction on LinkedIn for B2B lead generation before exploring Facebook ads. Or, perfect your SEO approach before investing in paid search. Find what works for your business model and double down on excelling in those areas first.
Acquiring new customers costs significantly more than keeping existing ones. After focusing on efficient acquisition channels, invest in retention.
Tactics like loyalty programs, product bundles, excellent customer service and email/SMS nurturing fuel repeat sales and referrals. These provide a high lifetime value per customer.
Loyal customers who rave about your business to friends are worth far more than one-time buyers. Capitalise on word-of-mouth by delighting the customers you worked hard to obtain.
An excellent sales process takes prospects seamlessly from education to purchase and loyalty. Avoid losing leads due to delays, unclear calls-to-action, or complicated transactions.
Tools like CRMs can track prospect interactions and automate lead nurturing. Clear CTA buttons and simplified online checkouts make purchasing effortless.
Evaluate each step of your sales process from the customer’s eyes. Remove any roadblocks leading prospects away from conversion.
Monitor the performance of any new initiatives, tools, or campaigns you implement. Track conversions, engagement, and costs diligently to determine actual ROI.
Be prepared to tweak or replace underperforming investments, and to double down on what works. Continuously optimise based on learnings around what best resonates with your audience and moves them down the funnel profitably.
Optimising your sales and marketing funnel is an ongoing process as your business grows and changes. Keep diligently researching, testing new channels, and stay on top of emerging strategies.
With a keen focus on maximising ROI through people-centric engagement, you can build an efficient funnel that converts visitors into delighted, loyal customers. This ultimately leads to the sustainably growing revenues every business seeks.
Invest wisely, keep learning, and always put your customers first throughout their buying journey.