One Product is enough..
You don’t need to have an online store like Shopee, Lazada or Amazon to succeed in eCommerce. Some of you are thinking that in order to have a successful online store, you need to have a wrestling competition with the big players like Lazada. Well, we all know you can’t compete with them – but what If you don’t have to?
It is a common practice on our Sari-sari stores to display as many products as possible to show-off that you have what the customers need, or perhaps to entice buyers to come and buy from your store with a display of eye-catching products..
First, Local eCommerce Industry is not like your common sari-sari store and the strategy to be successful on it should not be modeled on what is common.
Second, Lazada’s main traffic source is ‘Direct Traffic’ (Please see below):
What this means is that, a lot of people know how to go directly to Lazada and buy from there. Lazada’s brand is already strong and competing them at their turf is hopeless.
To close off point#2, in order to succeed in Local eCom here in the Philippines, you need to employ a strategy that Lazada and other big players doesn’t use.
We need another marketing tactic in order to get our slice of the pie on this multi-billion pesos industry.
The Secret Strategy: Funnels
So what is that strategy I’m talking about that makes our business safe from the deadly competition that the likes of Lazada.com.ph is bringing to small eCommerce businesses?
That secret strategy is what we call Funnels. On the following section, we will discuss what is a funnel and how we can deploy it to our advantage.
What is a Funnel?
To illustrate what a funnel is, let me tell you my own experience, a real-life scenario:
“We were on vacation at Panglao-Bohol. Me and my friends were walking by the beach then we were suddenly approach by someone and invited us for a free dinner at their hotel. Since we don’t have something planned that night – we don’t have anything to do anyway – we decided to accept the offer and go their hotel and have a free dinner.
That night, as we approached the hotel, we were warmly greeted as we entered their reception. The view was terrific and they decorated their hotel well.
The waiter gave us a table and we waited for our food. As we were waiting, another one of their team approached us and offered a chance to get a free 5 day hotel accommodation on any of their hotel in the Philippines – like Palawan or Boracay. We thought to ourselves, well, since we are here, why not also grab that offer for a chance of a free 5-day vacation. We love vacations – specially Free Ones!
But there’s catch, we need to attend their 15-minute package-offer presentation. We signed-up anyway, well, what is 15-minutes, we thought.
The Main Offer
After we had our free dinner, we were guided on their cozy presentation center and we watched a story about their brand, their packages, offers and why they are a “must-go” hotel in the country.
Then after the presentation, we were offered an “Exclusive Membership” package with a privilege of getting huge perks on any of their hotels plus a guaranteed 5-day free stay.
It was so expensive – Php 1.5Mn so yeah – we rejected that membership offer.
After we rejected their main offer, they then offered each a guaranteed P5,000 off if we booked on any of their hotels right now. They told us that that if we refused the offer now, we will not get any offers as good as that anymore, since our names were already recorded on their database, per our signed offer-acceptance.
Their offer was so strict that even if we walked away now, we won’t get the offer.
In our minds, we already gave in, its just that we did not bring any credit card or cash at that time to confirm the booking.
The End of Encounter
Long story short, even if we wanted to, we were not able to get the offer. We did not bring our wallets. Had they offered a more flexible deal, we would have booked it.
We did not get to estimate how many accepted or rejected their offers but I bet, they got many customers and clients that night booking for their membership and if not, on their hotels.”
Let’s Break Down the Encounter:
Our encounter above is an example of a funnel.
Let’s break down what happened and why it was considered a funnel:
- First, a very enticing offer (free dinner)
- Second, Main offer (Membership Fee)
- Third, a Downsell if we refuse the main offer (Book now on the hotel)
As you can see, if you have a product, specially if it’s expensive, you can’t just walk by a stranger and then-and-there offer your product and expect an outright purchase.
They will get is outright rejection.
On our encounter, we were not able to get their Main and Second offers not because we don’t like it. It was because we can’t afford the main offer and we did not have our wallets to book the second offer.
If we could, we would at that time..
If you were on our shoes, you will feel a smooth transition leading to a positive atmosphere of buying. It was enjoyable. That’s why I bet they got a lot of customers that night.
Had they offered their expensive products outright on their customer’s faces on the very first encounter, they would end their night with a few to no customers.
A funnel is a “guided” journey that a customer undertakes on our value ladder.
This is how Wikipedia Defines a Marketing Funnel:
The purchase funnel, or purchasing funnel, is a consumer focused marketing model which illustrates the theoretical customer journey towards the purchase of a product or service. … Awareness – the customer is aware of the existence of a product or service.https://en.wikipedia.org/wiki/Purchase_funnel
My example above (The Encounter) is what we call, an offline funnel. What we need to do is to use the online version of this strategy on our eCommerce business.
The good thing about a funnel is, you only need one product to start creating a funnel – unlike the traditional Lazada-like online store where you need to stuff your website with a lot of products. (This can be good if you have a huge capital and a huge warehouse).
So below, I will list the specific Online Sales Funnel Strategy we need to use in order to succeed on Local eCommerce – even if you don’t have huge capital and even if you can only afford to start with one product.
The Step-by-Step Strategy | One Product Funnel
- An Enticing Offer (Product specific, good copy-writing ads)
- Our enticing offer does not necessarily mean Free. What an enticing offer means is that, you can catch the attention of your target market and lure them to come to your funnel steps.
- An enticing offer appeals to the needs and wants of your target market and points your main product as the solution to their pain points.
- The enticing offer usually is your ad-copy since this is the stage that you are luring strangers to your product.
- The Main Product (Visually appealing Landing Page, equipped with marketing strategies to convert)
- Present points why this product can solve your customer’s problem.
- Provide high quality pictures of the product in action. Make each picture matter. Each picture must illustrate a point and is congruent to the solution of the customer’s pain points.
- Provide features and how it can solve your customer’s problems or satisfy your customer’s wants.
- Don’t concentrate on factory details such as “cm”, “manufacturing process”, “pressure” etc. Though they are important, they should not be the focus. Place then on another tab, or place them where they take the least attention. The focus of your Product Landing Page should be the Problem/Pain-point of your customer and how your product can help them. Ex. save time, save money, ease of work.. so they can do what they love, bonding with kids, buy gift for loved ones, no hassle.
- Second Offer ( or Third or Fourth, depending on scenario)
- If you have One Product. – On your second offer, you can show your customer an offer page where they can get another of the same product on a huge discount. Ex., your customer buys a whitening soap for P1000, after they buy the main product, offer them the same product for P850. So if your customer accepts the offer, your customer will leave your store spending more.
- If you have multiple Products. – You can offer your customer another product which compliments your main product. Ex., You are selling a whitening soap, so you can offer them a whitening lotion on a huge discount.. Of course you need to calculate your huge discount price so you can still get your ideal profit.
- Downsell Offer
- A downsell offer is your back-up offer in case they reject your second offer. This is usually a product with lower price point than your previous offer. The main goal is to make the customer spend more money on your store at that time.
- If you have One Product – on your downsell offer, you can further decrease your discount offer than the previous one. Ex. Your main product is P1000, your second offer is P850, you downsell offer could be P750.
- If you have Multiple Product – on your downsell offer, you can offer them a cheaper version of your previous offer. Ex. Your main product is P1000 (whitening soap), your second offer is P850(whitening lotion A), so your downsell product could be P750(whitening lotion B). Another product with a lower price point which still compliments the main product that they purchase. O
How TO Build This Funnel?
ClickFunnels – Shopify Combo
With ClickFunnels, you can easily build these type of funnel-offers with their simple drag and drop solution. The only con is, its expensive. You can start ClickFunnels using their 14-day trial and pay $97 per month, or the $297/month package.
Now you can combine it with shopify as your eCommerce platform – though shopify also charges $29/month
ClickFunnels – WordPress/WooCommerce Combo
On this combo, you will still have to pay the monthly price of ClickFunnels.
But this is a cheaper option since unlike shopify, WordPress/WooCommerce doesn’t have a monthly plan. Though will spend more time on setting your store up.
Shopify Funnels App
If click funnels is too much for you and you still want ease, you can use pure Shopify platform. Just add the Bold Upsell App.
You can get 14 day free trial on this App then you can gradually use their packages which starts at $9.99/mo up to $59.99/mo.
WordPress Funnels Plugin
Out of all the options I provided, this is the cheapest and the most customizable. This is the best choice if you have the patience and the time to set-up your funnel.
This is the best choice for me since I know PHP code and the WordPress platform by default, is open source – meaning – customizable. On this option, you can avoid the monthly payments of ClickFunnels and Shopify.
Note, you will still have to pay for your domain and hosting. But in the long run, this is the cheapest alternative by far.
You also need to buy the Plugins from BuildWooFunnels.com for a total of $149 one time payment with one year free plugin updates and premium support.
The Good News
We have a program called “6-Weeks Elite Mentorship for Local eCommerce” where we conduct an actual class, and a beginner friendly mentorship.
We will be giving away P15,000 worth of plugins with licenses on each of our students so they can build a high converting funnel with ZERO MONTHLY UPKEEP.
Check out the details of our Masterclass here --> https://colzzky.com/elite
You need to be creative and hardworking in order to survive in eCommerce business. You need to be willing to take a long learning curve since there is no shortcut to success.
Hope this article has helped on this path if you want to undergo.
Take your share of the pie on this Billion Peso industry!