In today’s episode of The Startup Chat, Steli and Hiten talk about optimizing your funnel no matter what type of funnel it is.
When it comes to acquiring new customers online, your funnels are a crucial part of the process. Therefore, optimization is essential if you want to increase conversions and sales.
In this week’s episode of The Startup Chat Steli and Hiten talk about what a funnel is, how to optimize it to increase conversions and sales and much more.
Time Stamped Show Notes:
00:32 What is a funnel.
02:09 How a funnel works.
02:38 Why every business has a funnel.
04:00 Why you should measure every step of your funnel.
05:01 How most founders look at their funnels.
06:07 How to analyze a funnel.
07:21 One thing that isn’t measured enough.
07:40 Why time is one of the key components in improving a funnel an entire business.
11:02 Why it’s important to figure out what percentage of people are signing up and dropping out.
3 Key Points:
No matter what stage of business you are, you do have a funnel.
Measure every step of your funnel.
You need to know all the steps and numbers in a funnel to really understand what’s going on.
Steli Efti: Hey everybody, this is Steli Efti.
Hiten Shah: And this is Hiten Shah, and today on the Start-Up Chat we're going to talk about optimizing your funnel, no matter what kind of funnel it is. So, Steli what the f*ck is a funnel?
Steli Efti: Oh, that's a really good question. Well, a funnel is a mental representation or a model of how to think about a customer journey with you. Or any kind of journey with you, like anytime you're trying to take a business relationship from nothing to a conversion of something you could visualize that or create a model of it that looks like a funnel. Like something that is big at the top and that goes kind of narrow down, and at the end there is just a few things that will pop out. So as a simple example, the easiest example to talk about is probably a customer funnel. At the top of it you think about all the prospects that you are advertising to, sending cold e-mails to, e-mailing, cold calling, whatever the hell you're prospecting at the top of the funnel, and marketing at the top of the funnel. And then some of these people and prospects will take the next step in the relationship and actually talk to you and entertain the idea and try things out, and consumer information from you, give you more information. That's probably the qualifying part of the journey and then some of those people that are interested and qualified and conversing with you will take the next step to actually try out the product so they are not trial users and some of these trial users will go down all the way down to them making a purchasing decision and becoming a customer. And if we took every step as a step in the funnel, it typically starts with a very big number and the number goes smaller and smaller and smaller, every single step until somebody is converted to being a customer of yours.
Hiten Shah: Great, that's great. And the funnels work for mobile apps, the funnels work for sales, funnels work for a SAAS product, it doesn't matter. We're talking about just the step by step process people take to get from point A to point Z. Whatever your point Z is, usually a purchase.
Steli Efti: Yeah, and you could apply the same thing for fundraising, right? But we're going to talk about specifically for customers since that's our kind of bread and butter and most of our listener's interests. Alright, so I'm going to throw out my first tip or my first thought, and we can go back and forth on this. First of all what I want to say is: no matter where your business is or where your start-up is,