A lead generation process flow chart can help you understand the lead generation process.
Today we are going to take a look at the classic chart that illustrates these fours stages of lead generation:
We will also share a different chart that we believe is a much better way to visualize your sales funnel.
Want to get clarity on how to effectively sell online?
The Classic Lead Generation Process Flow Chart
Here’s the classic lead generation process flow chart:
Let’s take a look a closer look at these four stages:
Stage #1: Attract
Your first step is to get the potential customer interested in what you have to offer – that is what marketing is all about.
There are two types of marketing:
- Inbound marketing where you use content to get your ideal customers to come to you. This includes search engine optimization (SEO), social media marketing, YouTube marketing, etc.
Traffic generated via inbound marketing is often referred to as “organic” because you aren’t paying for it directly.
- Outbound marketing where you go to your ideal customers yourself, put your offer in front of them, and ask them to take action.
Offline, this means methods such as distributing leaflets, paying for ads in newsletters and magazines, and promoting your offer on ad boards.
Online, this means paying an advertising platform to put your ads in front of your target audience, with the most popular platforms being Facebook, Instagram, and Google.
Traffic generated via outbound marketing is often referred to as “paid” because you are paying for it directly.
Online marketers love to argue about which is superior, inbound marketing or outbound marketing, but these debates are ultimately a waste of time because you should be utilizing both.
We believe that paid ads are the best way to test a new offer because:
- It allows you to target your ideal customers.
- You get traffic immediately.
Entrepreneurs who are just starting out are often hesitant to use paid advertising because it costs money.
However, it’s better to spend a few hundred bucks to quickly see whether your offer resonates with your target audience than waste a year promoting something that no one actually wants.
Moreover, paid advertising is also a great way to optimize your sales funnel for conversions. That’s how you can 2x, 5x, or even 10x your sales funnel profits.
However, in the long run, you want to build online assets that generate traffic, so that you wouldn’t have to pay for every unique visitor that you send to your lead magnet landing page.
That could mean:
- Building a blog.
- Building a YouTube channel.
- Building a following on social media.
However, all that takes time (think 12-24 months minimum), so you should only do this once you have established that there’s a demand for your offer and figured out how to profitably run ads so that you would have money coming in.
Stage #2: Convert
Okay, so you managed to get the potential customer’s attention, now what?
The next task is to convert that potential customer into a lead by persuading them to give you their email address. But how can you do that?
That’s where your lead magnet comes in. It’s a freebie that you offer to potential customers in exchange for their email address.
It can be anything that they can either download to their devices or access online:
- A report.
- An ebook.
- A webinar.
- A video course.
- An email course.
What matters is that:
- Your lead magnet offers a solution to a problem that your potential customer is struggling with.
- That problem is the same problem that your frontend product addresses (we’ll explain what a frontend product is later).
That way, your leave magnet not only serves as an incentive for the potential customer to sign up to your email list but also gives them a free taste of the value that they can expect from your paid products.
Also, remember that just because your lead magnet is free, doesn’t mean that you don’t need to “sell it”. What does that mean?
It means that you still need to persuade the potential customer to provide their email address in exchange for it!
That’s why we recommend you to:
- Create a lead generation landing page where you explain to the potential customer how the lead magnet will make their lives better.
- Drive traffic directly to that lead generation landing page as opposed to your homepage. This applies to both inbound marketing and outbound marketing.
Note that your lead magnet is the foundation of not only your lead generation funnel but also your entire sales funnel.
As we always emphasize, your ideal customers won’t give you their email addresses unless you offer them something SUPER VALUABLE in return, so make sure that your lead magnet is AMAZING.
Stage #3: Close
Once the potential customer gives you their email address, they become a lead and enter your sales funnel. This is where the lead generation process ends.
Now your job is to convert that lead into a paying customer by persuading them to buy your frontend product.
Typically, this process is automated, the selling is done via a follow-up email sequence.
Note that we didn’t say “a follow-up email”, we said “a follow-up email sequence”. It’s not enough to just send them one email. We recommend sending at least six follow-ups.
However, if you are selling an expensive product, you might need to “sell” not the product itself but a free consultation call in these emails, then pitch the actual product at the end of that call.
That being said, we believe that the price of your frontend product should be as low as possible, $7 is a price point that works great.
Why sell anything at such a low price?
Because the purpose of the frontend product isn’t so much to make you money but to convert the lead to a paying customer. Once you are over that hurdle, then you can sell them something more expensive.
And if you don’t have a $7 product right now, we recommend you to create one, so that you could convert more leads to paying customers.
Stage #4: Delight
Acquiring a new customer requires an investment of time, energy, and money. That’s why it’s so important to maximize customer lifetime value (CLV).
You can do that by:
- Creating an entire product line, then structuring your sales funnel according to the Value Ladder model (we’ll discuss that in a moment).
- Adding upsells, cross-sells, and downsells.
- Being more proactive with email marketing.
However, the most important thing when it comes to maximizing the CLV is delighting the customer, so that they would be happy to purchase from you again. Why?
Because if you fail to do that, then nothing else will matter, you will have lost their trust forever. And you can’t have a sustainable business if your customers don’t trust you.
So make sure that you:
- Only promise what you know you can deliver.
- Exceed the customer’s expectations.
Note that you should apply this all throughout the Value Ladder from your lead magnet to your most expensive product.
The Value Ladder Sales Funnel
Okay, so what is the Value Ladder?
It’s a sales funnel model that was created by our co-founder Russell Brunson who then used it to grow ClickFunnels from zero to $100M+ in annual revenue.
The Value Ladder sales funnel has four stages:
- Bait. You offer the potential customer a lead magnet in exchange for their email address. This stage is the lead generation funnel.
- Frontend. You offer the potential customer your least expensive and least valuable product. That’s the frontend offer that we discussed earlier in this article.
- Middle. You offer the customer a more expensive and more valuable product.
- Backend. You offer the customer your most expensive and most valuable product.
Ideally, there’s also some sort of a continuity program, meaning a subscription product that generates recurring revenue.
Here’s the Value Ladder chart that can help you visualize it:
(We believe it’s more helpful than the lead generation process flow chart because it covers the entire sales funnel, not just one product)
The reason this sales funnel works so well is that it allows you to:
- Start the relationship with that person by offering them free value.
- Nurture that relationship by continuing to provide free value.
- Build trust by providing progressively more value at each stage of the funnel.
Here’s how Russell explains it:
We believe that the Value Ladder is the most effective way to sell online, so we recommend you to implement it in your own business. Don’t know how?
Russell can help you…
Want Russell To Teach You How To Build Your First Sales Funnel?
Let’s keep it real:
Building a sales funnel from scratch can seem like a daunting task.
That’s why we created our 5 Day Challenge where Russell walks you through it step-by-step.
You will learn how to:
- Generate unlimited leads.
- Create your first lead magnet.
- Build your first sales funnel.
- Create a simple 6-email follow-up sequence.
- And launch your funnel!
…in just five days.
So don’t hesitate.