Understanding sales 📈

Before you think about specific marketing strategies, this chapter is meant to help you develop a framework and principles around how to think about growing your business.

UNDERSTANDING YOUR SALES FUNNEL

The concept of a “sales funnel” can apply to almost any business. It’s a visual representation of where a potential customer is in their journey with regards to buying from you. When you’re deciding what steps to take next with marketing your business or expanding your customer base, it’s helpful to consider which stage of the funnel you’re targeting with each effort.

Top of funnel marketing

The “top” of your funnel generally refers to people who haven’t purchased from you yet and are just getting familiar with your brand. The messaging you’d present to people in this stage is intended to get them interested enough to find out more information - think of it like a neon sign in front of a storefront intended to capture the attention of passers by.

Examples of top of funnel marketing:

  • Reels and photos that show your product in an enticing way

  • Posts that tell your brand story and mission

  • Posters and flyers with snappy tag lines and QR codes

  • Physical branding and decor on a market booth

Bottom of funnel marketing

The “bottom” of your funnel refers to customers who have either already purchased from you or have decided that they’re going to. Marketing for the bottom of your funnel is usually focused around getting customers to take the last step to make a purchase, or to come back for another order.

Examples of bottom of funnel marketing:

  • Reels and posts about loyalty points

  • First time and returning customer discounts

  • Thank you cards / order inserts that invite customers to subscribe to your SMS list

  • Sharing reviews or videos of customers enjoying your goods

YOUR SMS SUBSCRIBER LIST

Every time you drop, Hotplate automatically sends a text to your subscribers with a link to order. That means that the number of subscribers on your customer list is the #1 predictor of how many sales you’ll actually get from a drop. On average, Hotplate chefs see about 10% of their subscribers place an order - for example if you have 500 subscribers, you can usually expect about 50 to place an order.

When you think about growing your sales week over week, we recommend that you focus your marketing efforts around getting anyone who’s interested to subscribe to SMS notifications from your storefront. A number on your SMS list is much more valuable than a follow on Instagram. Once someone is subscribed, you have the opportunity to reach them instantly and directly every time you do a drop - which is much more valuable than posting something on social media and hoping that your followers see it.

These are some things to make sure you’re doing to keep your customer list active and growing:

  • Always have a printed QR code to your storefront at in person pop ups. Invite visitors to subscribe on the spot!

  • Include a reminder in your Instagram bio to subscribe to storefront notifications

  • Regularly post stories to your Instagram with a link to subscribe to your storefront

  • Put up flyers or hand out physical marketing materials that specifically ask someone to subscribe

Hang a sign like this at your pop ups to remind customers to sign up

Include a card with a QR code and reminder to subscribe.

TESTING LOCATIONS

One way that chefs on Hotplate are able to tap into entire new communities of subscribers and customers is by testing additional pick up or pop up locations. Especially for businesses in sprawling areas with multiple hubs or “downtowns”, popping up in another part of town can help you reach a lot of new customers at once. Even if you only pop up elsewhere once or twice, you could gain new fans and subscribers that will drive to pickup at your usual locations for the following drops. If sales are slow, selling in a new part of town is also a good way to understand if your current location is actually inconvenient or not ideal for your existing customer base.

Picking a new location

You know your cities best, so think about the parts of town where your typical customer might hang out. You can also think about targeting the edges or opposite sides of your city, or a specific neighborhood that has a strong sense of identity and community. For example, sellers in Los Angeles talk about how customers who live on the West Side of city will rarely come to an east East Side pickup, and vice versa. Often their solution is to offer two different pickup locations: one on each side of town!

Test with a pop up or market

One way to test if a new location has customers for you is to pop up in person or participate in a market there. Being set up with a booth or a table will allow you to introduce yourself and your brand to the community and grow your subscriber list. Look for coffee shops, little boutiques, or other businesses that have a lot of foot traffic and ask to set up out front with a small amount of inventory. Be sure to invite everyone to subscribe to your SMS notifications so they can find out about your drops in other parts of town too!

Test with a pickup only location

If you already have a big subscriber list or following, a good way to test where customers are is to add an additional pickup location for your regularly scheduled drops. This could mean partnering with a cafe or brick and mortar business to create a shelf or space for customers to come pick up their Hotplate pre-orders, even when you’re not there. Sometimes shops are also willing to keep orders behind the counter and have their staff help hand them to customers. Adding another pickup point is a great way to service customers who are too far from your existing pickup location without offering home delivery.