You can see a lot of super-cheap products with discounts up to 50%-99% of the original value on eCommerce platforms or online stores. These products are often hot and essential, extremely attractive offers, and only appear briefly during Today’s Deal or Flash Sale.
In marketing terms, it calls Funnel Products. Funnel Products are designed and priced to convert as many “potential customers” into “customers” as possible. Funnel Products will not make a profit, but dramatically increase the number of whole store visits, thereby expanding to other products in the shop and increasing the average order value.
Sorting products by Funnel will make the Marketing and sales process of a shop much more convenient. A Product Funnel needs to have at least 3 core product types:
Funnel Product: These products are all selected to be low-cost and meet the needs of many user segments to boost the possibility of being added to their cart as much as possible.
Main Product: is the main product of your Shop and brings a stable source of revenue
Eg. Products that sell all year round or featured products and bring the main source of revenue for Shop.
End-of-Funnel Products: These are products with higher prices and high margins
Your product needs to be designed to solve the problems your customers have.
With three types of products as above, corresponding to three levels of problems that customers deal with: Small problem, the main problem, big problem
Funnel Product creates a buying journey for the customer. After adding the Funnel Product to the cart, buyers tend to visit the whole store and finding for more opportunities with the remaining products. Their mentality same as catching more great deals. Thereby increasing the accessibility of customers to the whole store’ products.
When choosing funnel products for your Shop, there are a few criteria that you need to know:
The first thing when choosing a product in general or even a Funnel Product in particular, you always need to consider market demand. That demand must be huge or it will be difficult to boost the sales.
As mentioned above, Funnel Products is not aiming to make a profit but to expand to other products of the store. Meanwhile, the main products are the products that the shop does business with and directly gain profits. Therefore, to pull customers from funnel products to buying mainstream products, when choosing funnel products, they must be “relevant” to the mainstream product.
For example, a shop selling phones can choose funnel products such as charging cables, headphones, cases,…
Cheap, easy-to-buy goods are often very popular with customers. Choosing such Funnel Products means your brand has succeeded in attracting customers and increasing brand awareness. If they love
it, they will quickly become your loyal customers.
If you want customers to come back again and again, choose things that have a short life cycle.
It is a fact that Funnel Products need to be given the same priority as mainstream products. To be able to help Funnel Products successfully attract customers to visit the store and buy, you need to prepare:
Now you clearly understand how to categorize the products of a typical shop. Whether your business is online or offline, you should apply the product funnel model to attract customers and increase the average value of an order.