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Earlier this week we looked at Marketing funnels, then the B.S. funnel.  Today we’re going to look at the practical application of the Marketing funnel in two case studies.  Both these case studies are based on my observations of the businesses.  The cake shop is one near here, the Tech Coach is my Coach.  I’m sure that they both have a lot more products than shown here, I’ve simply selected enough for the purposes of illustration.

Physical Product business – Cake Shop

The free sample layer starts with giving away taste tests of cakes that are broken during baking.  This is no extra cost or effort for them, they would be discarded or given away as they are unsaleable.

Customers generally start by sampling the cakes, coming in for a coffee and cake (it’s a small café as well as a cake shop), buying some cakes to take home.  The cakes are delicious and well decorated, the staff are helpful and always fun to talk to so it’s a great customer experience as well.

The next level of the funnel is the whole cakes, decorated cakes decorations and cupcake packs.  There is always advertising around the shop, on the tables and samples to look at.  Coupled with a great customer experience, it’s a logical place to buy your child’s birthday cake, or just a nice cake to take to an afternoon tea.

Moving towards the narrow end of their funnel is the Birthday party sets.  They provide the cake and food for kids parties.  Order in advance and pick up on the day.  You provide the plates, cups etc, all the food is done for you.

Their top end products are wedding cakes, bonbonniere and Theme Parties.  Expensive and very good quality.  Because of the great service, taste and presentation of their smaller products, their cakes and parties are in high demand because they are being recommended by customers.  Even those who have not bought the expensive products recommend them to their friends because their experience at the café level has been so good.

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Service Business – Tech Coach

This case study is based on my observation of my Coach.  If you want to check her out, her name is Sandra De Freitas and she’s known as The Tech Coach.  On twitter she’s @techcoach if you want to follow her.

The introduction to Sandra and her site is via a free report, signing up to her monthly newsletter or the articles posted on her blog.  She shows her expertise by giving away quality information, which leads clients to trust her.  She also runs free teleseminars, which isn’t written on the diagram.

First purchases are generally the downloadable e-books or audio’s.  My first purchase from her was her physical book.  Did she know what she was talking about?  Absolutely!  It was a total no-brainer for me to buy deeper into the product funnel.

The next level has the monthly membership site, Laser Coaching (15 minute sessions), simple tech support, and audio+workbook information products.  The membership site actually costs less than $50 per month, however because it’s an ongoing purchase it’s deeper in the funnel.

At the $200-$500 level you’re spending some serious money – this is where the personalise coaching comes in.  Basic coaching of 1-2 sessions per month fall into this level, as does full website setups.

The very bottom of her funnel is the Platinum level of Coaching.  Four sessions a month, full email and IM support in-between sessions.  This is where the cost to her in time is greatest and therefore has the highest price.

Before anyone asks me, my Marketing funnel is very much a work in progress.  I have several products in the works and in various stages of completion.  Hence the reason there’s currently no product page.  I’m still offering coaching though, so if you want a good Coach to help grow your business, shoot me an email.  🙂  (I expect to have two openings for new clients in June – more on that later)

And what about your funnel?  What services do you offer and at what price points?  What can you offer clients that you currently aren’t offering?  Where do those services fit into your funnel?

Thoughts?  Comments?  Ideas?  Questions?