Bakery products in the United States make up about 2.1% of the gross domestic product, totaling $311 billion in economic output. By 2021, sales are expected to be driven by smaller sized cakes with an estimated increase of 7.2% per year.
These small-sized, innovative and creative cakes with unique taste are expected to drive the industry to an estimated $754.8 million by 2021. The average family’s spending on bakery products is expected to reach $383.75 by 2021.
The majority of the amount spent will be on bread while cakes will be second on the list. The baking industry is one that has potentials.
In a bid to key into this industry with huge potentials ahead, one must do a lot to drive sales. Without a proper strategy for sales, facts and figures might have little or no meaning at all. One of such sales strategies is the sales funnel.
What is a Sales Funnel?
Sales funnels also called a sales process or revenue funnel is the process a company leads its customers through when purchasing their products.
For a bakery firm, a sales funnel s the path that buyers go through in a bid to buy cakes or bread. The logic behind this idea is such that as you move down the funnel, the number of people reduce.
The reduction leads you from just interested passersby to satisfied customers who come back for more. The funnel has different levels depending on the type of business outfit. For a bakery, the funnel would have four levels which are:
1. The Awareness Level:
At this stage, people become aware of your business. A new customer finds your bakery on social media, by referral through an old costumer or he simply walks in. A lot of convincing is done here as you are trying to get your customers to like your products.
2. Interest Level:
Your prospective client demonstrates an interest in your product. Now, this customer is going through your online store and trying to see if any of your cakes catches his eye. At this point, he probably sees a nice cake.
Often times, the customer has done product research and is probably doing comparison shopping. The idea at this level is to help them make an informed decision rather than push your products.
Let them see clear cut differences why your products stand out from others. At this point, you can talk about your gluten-free bread for example. Tell them why gluten is bad and why you don’t use it in your bread.
3. Decision Level:
The customer is ready to buy and the negotiations begin. Remember, the customer is probably considering multiple choices. Your best bet at this point is to throw your best offers at him.
Your best offers could be; buy one, get one cupcake free, a discount or free delivery. The idea is to get your customers so blown away that they can’t resist your offer.
4. Action Level:
Here, your customer buys the product. However, the fact that the customer has come this far down funnel doesn’t mean that your work is done. You should work towards customer retention.
You want that customer to come back again and again and if possible refer more people. Encourage the customer with loyalty discounts at intervals and have them give you honest feedback on your products.
Creating A Working Sales Funnel For Your Bakery
Step 1: Understand Your Market Target
You have to understand what you are selling and the type of people that you intend to sell to. Your target refers to potential customers that have not had previous contacts with your brand. For instance, if you are making cakes, what type of cakes are you selling and who are your prospective buyers?
Step 2: Capture Attention
Since you understand what your customers want, the next thing to do is to place your products before them. By making adverts that are directed to specific groups. For instance, you can advertise your wedding cakes in blog pages dedicated to wedding gist.
You should also put up an advert on social media for people to see and also create a website for your bakery. Make sure the products that appear on your adverts are catchy and genuine.
Step 3: Converting Your Targets to Leads
A lead is a potential customer that has had some levels of interaction with your brand or company. There are different levels of interaction and they include:
First Customer Contact:
At this point, the customer makes known his interest for the first time. When such customers make their way into your store, meet them in person.
Be as friendly as possible and show them the best of the products you have around. You should as well offer them a taste of some of the products they intend to buy.
You explain to them the reason why they should go on and purchase your cake or your bread. You should at this point be as honest as possible. Try not to exaggerate.
The idea here should be to inform them about healthy reasons why they should pick you. Let them see why you are better and why your prices are justified.
This is the point where you bargain with your customers on discount offers and deals that make you better than your competition.
Step 4: Purchase and Keep In Touch
At this point, there could be two outcomes, purchase or rejection. In the event of rejection, you should find out why and make improvements. In the event of a purchase, ask for feedback for improvements as well.
Creating a sales funnel that works might not sound easy. However, it is what you need to be successful in a competitive industry like the bakery industry. You have to take the time to understand your market, after which you design a strategy that suits you and satisfies your intended clients. Work on it as often as possible. While working on it, evaluate its success as well.