Your customer acquisition funnel is a process/place where you turn prospects into customers.
Is it optimized?
A lot of prospects might be leaving somewhere in your acquisition funnel .
You need to find that leakage.
You need to optimize that funnel to ensure that you’re getting the most out of it.
Don’t say you’re a small startup so you don’t need to optimize your acquisition funnel.
Large companies too have leakage/blockage points in their customer acquisition funnel.
When this is fixed, it often translates into huge boosts for their growth and revenue.
Even Facebook wants growth.
The company is adding 150 million users year on year for the past four years at least.
If you have a high number of visitors coming to your website, and only a very few are converting into customers, it shows that your customer acquisition funnel isn’t optimized.
It’s time to remove those leakage points in your funnel and increase your conversion rate. Free PDF Download: Get access to the free checklist that will show you how to optimize your customer acquisition funnel.
How To Know Where You’re Losing Customers In Your Acquisition Funnel
By now, I’m sure your startup has a few customers.
But you want more. More customers.
The first step is to identify the blockage points in your customer acquisition funnel.
To do that, ask yourself this question:
What’s currently stopping you from increasing sales by 5x?
You could come with answers like:
You don’t have enough leads coming at the top of your current funnel.
Your website is getting a lot of visitors, but many of them aren’t converting into customers.
You have plenty of users who sign up for free trials, but many of them aren’t converting into paying customers.
You’re signing up a lot of customers in proportion to a number of visits your website receives, but they are not enough to justify growth.
Or, you sell a big-ticket product that involves meeting and convincing the key decision makers, and you’re failing to do so.
In most cases, the solutions are present in your answers.
Just do the reverse.
For example, if enough leads aren’t coming at the top of your funnel, get more leads at the top of your funnel .
If plenty users who signed up for free trials aren’t converting, get more free trials to convert.
It takes hard work and trying different tactics.
But there’s something very important you must know at this stage.
One Question That Will Save Your Entire Business
I’ve seen startups who did everything, used every growth tactic to optimize their customer acquisition funnel, and yet they failed.
The reason for this is very simple:
They lacked a product/market fit.
Your startup won’t grow if you haven’t nailed this first.
When people sign up to use your product, it’s not because you have a great marketing strategy alone. It’s also because you have a great product.
Yes, I know that having a great product doesn’t automatically means your product will succeed. But there’s a chance that you might.
No marketing in this world will save a bad product or a product the world doesn’t need.
CB Insights ran a survey to find the top reasons why most startups fail. They met a lot of founders whose startups failed and asked them to share their stories.
40% of the respondents said their startups failed because there was zero market need for their products.
In fact, it was the number reason why startups fail:
Solving for a product/market fit has been widely discussed everywhere on the web. Some great books have been written on it.
One of them is “ The Lean Startup ” by Eric Ries.