What is a Marketing Funnel

A marketing funnel is a way to visualize the entire customer journey. It usually begins with the customer first discovering the brand and product, and perhaps eventually making a purchase and becoming a loyal customer.

Of course, the reason it is funnel-shaped is that not 100% of those who come to know about a product will make a purchase.

Let’s take a closer look at each of the stages we see in the image above, and what to focus on to maximize customer movement down the funnel.

1. Awareness

At the very top we see a potential customer falling in, this represents when an individual (or business) becomes aware of the existence of a product offering.

Although we illustrated this as someone dropping in, it rarely happens by accident and customers come to know of products and brands often through marketing efforts.

At this stage, it is a good idea to know where your target audience and potential customers are so you can place your product in front of them to raise awareness. After all, the more individuals you get to “fall” into your funnel, the higher the potential sales at the end.

2. Interest

At the interest stage, the potential customer has moved on from just being aware of a product’s existence to being curious about the product. They may do some research about the brand, or explore social media pages.

At this stage, it is important to engage the potential customer and present your brand positioning. They are starting to get to know you, and you want to leave a good impression.

3. Consideration

If you’ve left a good impression, your product will enter the consideration set of a customer. They are looking to make a purchase but still deciding who to pick, you’re being compared to your competition.

As potential customers hone in on their research, your job is to make sure information and key selling points are easily available to them.

Keep them in the loop through email campaigns, demonstrate positive reviews through case studies or even consider offering a free trial to stand out.

4. Conversion

Great job, you’ve become the finalist and your potential customer is finally becoming an actual customer.

At this point, be sure to make the purchase process simple so that your customer does not back out. This can include features like Single Sign-On options for e-commerce pages, which make checking-out a breeze.

If the purchase goes smoothly, your customer may come back for more.

5. Repurchase: Loyalty

So if the customer had a good experience during the previous stages in the funnel, and also were pleased with the product itself, they may decide to repurchase.

Of course, there are a few things you can do to help them come to this conclusion, such as loyalty programs and continued engagement through social media and email.

It’s possible to go a step further and include referral programs. Now, new potential customers arrive at the top of the marketing funnel and it comes full circle.