A Marketing Funnel is a conceptual model that illustrates potential customers’ journey, from first becoming aware of a brand or product to finally buying something or becoming a repeat customer.
It’s visualized as a funnel because fewer people continue to the next stage at each step, making it look like a funnel.
This journey usually has steps like getting to know the brand, getting interested, thinking about buying, deciding to buy, making the purchase, and then sticking with the brand.1
Visual Representation:
Stages of the Marketing Funnel:
- Awareness: This is the top funnel where potential customers become aware of a brand or product. This could be through various means such as advertisements, word of mouth, social media, or organic search results.
- Interest: Once potential customers know the brand, they move to the interest stage. Here, they might seek more information about the product or service, perhaps by visiting the company’s website, reading reviews, or comparing it with competitors.
- Consideration: At this stage, potential customers consider whether to purchase the product or service. They might sign up for newsletters, watch product demos, or engage with the brand on social media.
- Intent: This is the stage where potential customers clearly intend to buy. They might add products to their shopping cart, request a quote, or visit a physical store.
- Purchase: This is the bottom of the funnel where the potential customer becomes an actual customer by making a purchase.
- Loyalty & Advocacy: Some models include post-purchase stages where businesses aim to turn customers into repeat buyers or brand advocates. This could involve follow-up marketing, loyalty programs, or encouraging customers to leave reviews and refer friends.2
Purpose:
A marketing funnel aims to shape marketing plans and actions by paying attention to what consumers need and how they act at each point of their journey.
By breaking down the customer’s path into clear steps, companies can customize their marketing to draw in, connect with, and win over their target audience.
This method makes it easier to use resources wisely, improves the customer experience, and, in the end, boosts both sales and customer loyalty.3
Benefits:
- Strategic Planning: The funnel provides a structured framework for planning marketing campaigns and initiatives.
- Improved Customer Understanding: It offers insights into customer behavior, preferences, and pain points at different stages.
- Resource Allocation: Businesses can prioritize and allocate resources more effectively based on where they’re most needed in the funnel.
- Conversion Optimization: Businesses can identify bottlenecks and optimize for better conversion rates by analyzing the funnel.
Usage:
The marketing funnel is used across various industries and business models.
The funnel can be adapted and applied by a company that sells a product online, offers a service, or operates a brick-and-mortar store.
Digital marketers might use the funnel to plan their content strategy, email campaigns, or pay-per-click advertising.
In contrast, traditional marketers might use it to guide their print advertising, events, or direct mail efforts.
Example:
Imagine a new tech startup that has developed a revolutionary sleep-tracking device.
- Awareness: They launch a series of online ads and social media campaigns to introduce their product to the market.
- Interest: Potential customers intrigued by the ads visit the startup’s website to learn more about the device’s features.
- Consideration: They read blog posts, watch video demos, and compare the device with leading brands.
- Intent: Convinced of the product’s value, they sign up for notifications about its release date.
- Purchase: On launch day, many of these potential customers decide to buy the sleep tracker.
- Loyalty & Advocacy: After using and loving the product, they leave positive reviews online and recommend the device to friends and family.4
Related Terms:
References:
1. Sapian, A., & Vyshnevska, M. (2019). The marketing funnel as an effective way of a business strategy. ΛΌГOΣ. The art of scientific mind. https://er.knutd.edu.ua/bitstream/123456789/14560/3/Sapian_A_Vyshnevska_M.pdf
2. Staff, S. (2021, August 19). How the marketing funnel works from top to bottom. https://www.skyword.com/contentstandard/how-the-marketing-funnel-works-from-top-to-bottom/
3. Heinz, M. (2016). Full funnel marketing: How to embrace revenue responsibility and increase marketing’s influence on pipeline growth and closed deals. Heinz Marketing Press. https://www.amazon.com/Full-Funnel-Marketing-Matt-Heinz/dp/0615664504/
4. Baum, N. (2020). Marketing Funnel: Visualizing the patient’s journey. J. Med. Pract. Manag, 36, 38-40. https://podiatrym.com/pdf/2022/3/Baum322Web.pdf