Creating A Perfect Product Assortment For Your Sales Funnel
Imagine that a young man was invited to a room full of girls dreaming of getting married. He is handsome, healthy, earns a lot, wants a family and children. Does this mean that nine out of ten potential brides will immediately agree to his marriage proposal? Of course not.
This is what a proper Product Assortment (you may also know it as assortment matrix, assortment plan, product assortment or product mix) does — it builds a trust relationship between two parties and helps both of them to move up the partnership leader.
Why do we need an automated sales funnel
Any relationship abides the same principles work and they are based on a certain sequence of actions. The example of marriage is a metaphor that will help you better understand why you need a Product Assortment plan in your sales funnel.
If we return to the subject of relationship, it all starts with young man asking for the girl’s phone number, inviting her for a date. The level of trust is growing. Then the couple meets, lives together. With each step, decisions become more serious, making them harder, but this happens gradually and consistently.
Sounds correct, right? This is how human relationships work.
But then, why is it considered right in business to act so straight forward and bluntly and forcibly sell something to a person you just met?
We force the customer to immediately buy our product and are surprised when he begins to doubt and leaves without having spent 30 seconds on your site.
And a Product Assortment helps to build trusting relationships with customers and encourages them to buy your product or service willingly, parting with money without any doubt. That is why this business tool allows you to increase profits several times without additional investment in development, advertising or product change.
Creating a Product Assortment matrix for your business
Using this scheme, right now you can build a product matrix for your company.
It consists of the following steps:
– Lead magnet
– Core offer
– Return path
If you depict this schematically, you get a funnel in the center of which is the main product. This is the main character of your business. But before you offer it to your client, let me go through the first two steps that will help them understand whether you can be trusted or not.
Lead magnet and tripwire
Imagine that 100% of users visit your site. Of these, only 10% become buyers.
From case studies, the lead magnet and tripwire help to increase this amount to 60%, which is called conversion optimization in business.
Entering the funnel begins with a decision that is easy to make, and for this, offer the customer something free. This is the lead magnet.
Depending on the specifics of the company, the lead magnet may be a product or service:
- consultation or checklist;
- useful video;
- free trial
The goal of the lead magnet is to build trust and receive the buyer’s email. This is necessary for further communication through letters and, thus, familiarization with the product. If you offer something truly valuable and useful for free, people can easily take the first step.
Tripwayer is a product that is so inexpensive that it is very difficult to refuse. It is necessary to establish financial relations and encourage the completion of the first purchase, i.e. first serious step.
The purpose of the trip is to offer great value for little money so that the client can easily make a decision in your favor. If the tripwire is useful, and the buyer gets the desired result, he is much more likely to buy the main product.
Profit maximizer and return path
There are always those who are willing to pay more for a better service or a more expensive product.
That is why it makes sense to offer the customer-related products or services. If you sell cameras, related products will be covers, lenses, lenses. If the main product is a dress, then you can additionally sell accessories to it.
This stage in the funnel scheme is called a profit maximizer and it contains up to 80% of the profit. The mistake of most entrepreneurs is that they spend a lot of time looking for new customers, instead of offering more to those with whom they already have a relationship.
The return path is an inexpensive product that tends to return the client to your business again and again. The return path can be software, creams, perfumes, magazine subscriptions.
If you implement the proposed product matrix in your business, you will see the results pretty quickly.