Friday, January 27, 2012

Social media and the funnel system (funnel marketing)

The funnel system begins by offering your products or services along a range of price points to attract a variety of customers. 

If you aren't familiar with Social Media, or want some case studies before reading further:







Your goal in "funnel marketing" is to conveyer belt customers along from one level to the next, starting from low to high. Those familiar with Ken Wilber will note that this process mirrors cultural and biological evolution - we begin with simplicity and move to complexity. In biology, societies, and in marketing,  most will not follow this progression. But just like the food chain, or industrialization, this is built into the design. A business can do this as the fee keeps increasing at each level thus you will require fewer and fewer customers at each level to make the same (or more) money. 

I resisted this as I hated the idea of forcing someone to go along a path that they don't want. Just like a child forced to grow up too soon, or a fish suddenly finding itself gasping on dry land, the evolution can be seen as forced - but what if the more complex (or in the case of capitalism, the more deluxe) item is actually TRULY better. If you believe in it, then there is no problem and funnel marketing simply accommodates a variety of people." 


How does this relate to social media?



Well, if you provide a product or service
 worth talking about, AND you make a difference in someone's life, and you make money to support yourself and your family, the funnel is a win-win social media extension. 

What about Information Services


If your product is information, with no fixed costs (like a product or the need to pay other's labor), then your low-end can be provided free. Some say provide  80% of your work for free. My anecdotal research says about 93% of blog readers consume
the content without purchasing anything. As those 93% help to spread the word about you - they are essential - and in a way part of your staff. Even if they don't know it!


But I don't want to handle sales and customer service!


Many information providers hesitate to self-publish. They prefer the comfort of a publisher and willing to give over the bulk of the profits. But note that if a publisher sees your latest title is not performing, they'll drop you like a hot potato. This is what they feel they must do to survive. But some of the great works of art in our society were ignored initially, and in the realm of information services you may be ahead of the curve. Think about this, when Bill Gates wrote "The Road Ahead" - he didn't write about the Internet! (he obviously added it in a later edition). And the CEO of IBM (before the PC) said, "we foresee the need for only about five business computers in the world"


So, anecdotal evidence (your results may vary), is that 


A) 95% of customers are great. 
B) 3-4% need tech support or help to use the product
C)  1% of people have some kind of axe to grind, and you give them a place to vent their anger




Your job, as if the customer were a child, is look for the root concern. Is there anything else in their email that could clue you in on what's really going on? Do they want to be heard? (right brain). What helps in that case is to show them "I am a real person!" 


So if a customer curses you or is angry, try: "I realize you're

concerned, but I'll be happy to help you and see if we can make this right."

Typically this will assuage approximately 80% of irate customers. Many will apologize for being rude. Some are just crazy. Quickly remove the latter from your client database. If someone is that troubled, you really don't want them as a customer. 


Social Marketing means you are building real relationships


This is not artificial connections. Not only will that fail, but it sucks your soul. So does thinking about sales. Try this, find people online that you can help. If they could help you too, all the better.  If you finish reading a blog posting you like, or even an author of a book, send a message saying you liked what hey wrote. If they inspired you, tell them or add your comment publicly, or you can connect to the blogger on their contact form. You can follow people on Twitter you don't know, but have heard some good things about them.

You will find that the more and more you do this, without having an end goal or a strategy, the easier it will become. Many whom you write will be glad to hear from you - so spread the joy and gratitude.

Here are some ideas, let me know if you do them and if it works! 


  • Post a special offer on Twitter; ask friends to retweet
  • Offer stuff for free or sell below cost plan and start the funnel
  • Put a special "email only" promotion at the bottom of your email signature
  • Ask happy customers (existing ones) to post reviews and endorsements
  • Add your product or service as a one-time auction on eBay
  • Select a prize and produce a contest with a big prize

Wildfire Interactive. will get you set up and run the whole thing from your Facebook page or other source. I am not affiliated or compensated for suggesting Wildfire, and I've yet to use them myself. I'll post more once I do!
  
Here's one of my free videos about social media marketing
http://youtu.be/uunUvy5RtQA

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