There has been much talk about sales funnels and how to guide people through them. Email teams are usually called in to handle the narrow top of the funnel.
Among the significant findings of a study is that 74% of all funnels do not make money -- and the main problem is people, according to Full Funnel Performance Marketing, a study by Growth Thinking.
Funnel performance is harmed by:
But there are certain practical steps that brands can take to make funnels that don’t turn into mazes. For instance, the study found that shorter tunnels now outperform longer ones.
Most brands provide five funnel steps, but many go higher:
The problem with too many steps is that over half of growth funnels “exhaust resources and increase customers drop-off by 78%,” the study notes. The usual durations are:
Instant — 5%
1 day — 11%
1-3 days — 14$
+7 days — 51%
Just what does it cost to build a funnel (for those who haven’t tried it)? The study reports:
<$10 — 5%
$11-100 — 11%
$101-500 — 15%
$501-$1,000 — 28%
+$1,000 — 41%
This includes all input costs.
Of the companies polled, 41% have created 5+ funnels, 21% have done four, 19% claim three, 115 two and 3% have built only one. Many haven’t been working with them that long:
How many people does it take to manage a funnel? Firms are using:
As for tools, 40% integrate from two to five, and 31% from six to 10. Overall, 80% utilize 10 tools or fewer.
It would seem, though, that few firms do not automate their entire their tunnel (or tunnels). The respondents say they automate:
Despite that, some brands draw what seem like reasonable conversion rates:
"Although talent is scarce, and growth systems are underdeveloped, the growth hacking industry is quickly emerging,” writes Nader Sabry, author of the study, and author of Ready Set Growth Hack. “Rising from its sketchy history, it is proving to be a viable discipline even for fortune 500s."