Marketing funnel is a well-lauded model that has helped people understand and maximize their business sales for years. Theorized in the late 1800s, it maps out a customer’s journey from their initial awareness of your business to the moment after they make a purchase.
But what exactly is meant by a marketing funnel and how can you use it for your business? It describes the progressions of a customer’s relationship with a business and helps the company understand how they can influence customers in each stage.
Stages of Marketing Funnel
There are different variations of the stages to a marketing funnel, but they all have the same basic principles. Once you understand these stages, you can create an overall more effective customer journey, from increasing brand awareness, create more conversions and, ideally, loyalty.
Here are the fundamental stages of marketing funnel and the best strategies to improve each of them:
The first stage, or awareness, is the most essential step in marketing a business. This is when you should reach out to as many potential customers as possible, as this is the stage when a customer first hears about your brand. The wider your target audience is, the higher will your possible purchases be. Many new businesses will channel their marketing budget to this stage as they strive to attract as much attention as possible and increase the public’s awareness of their brand.
This stage can happen through many ways, including seeing an ad on social media, an article that features your business, finding your website on a search engine or even hearing from a friend who’s already a customer. The important thing is that they now know that your business exists.
Today, the easiest way to increase your awareness net is through digital and content marketing. Start focusing your marketing strategy on creating and sharing valuable content, getting the word out to as many audiences as possible. You can even start a podcast, like Michael Ginarto, or simply be invited to speak on one.
The success of the awareness stage also means that you will have more people that can progress down to the next stages of your funnel.
Also called ‘consideration’, this is the stage when customers develop a growing interest in your business and other similar ones. They heard about your product, and now they want to know more. The customers then start to find more information about the features, benefits as well as other people’s reviews.
So, your job at this stage is to inform people about your product and why it is better than other products, making it seem appealing to the customers. You want to suggest, without too much hard selling, that your product can solve their problem.
You can do this by improving your Google rank and optimizing your website or blog SEO, so that your brand will appear first when the customer is searching the relevant niches. In terms of social media, this is when you want to hook your customers and turn them into followers, so that you can keep them updated on any new information.
This is the stage when your customers actually start wanting to buy your product. Before, they were merely interested in the idea that your brand is offering. Now, they have the active desire to be part of that idea and experience the benefits that you had sold.
The interest and desire stage often take place closely in time or sometimes simultaneously. Your main goal is to make customers want your product over others and convert their intent into action.
What you can do to maximize this stage is build on what you have done in the previous stage. Engage the potential customers so that their desire will keep increasing as you convince them that your product is the right one for them
Next, is the action or purchase stage. This is perhaps the most crucial stage from a profitability point of view, as this is when potential customers actually buy your product and become a paying customer. Therefore, the ideal marketing strategy for this stage is to convey a sense of urgency that the customer feels like they should take action now.
For an e-commerce site, you can improve user interface and ease of payment to encourage purchase. You can also use promotion and sales, upselling and create an overall pleasant buying experience.
This will result in promptness of action and decrease the risk of a customer deciding that they don’t want your product that much, after all.
For most, action is the final stage of a funnel. But there’s another equally important stage: loyalty. It’s easier to sell to an old customer than trying to find new ones.
You can encourage repeated purchase through reward programs and ensuring a high standard of service and quality.
Why You Should Use Marketing Funnel
The great thing about marketing funnel is that its principles can be applied to any kind of business that involves a customer purchase. It doesn’t matter if your business is offline retail or an e-commerce site, you can still map out a funnel for each of your customer.
Your marketing can be more effective when you target a specific stage of the funnel, as it allows your strategy to focus on what it wants the customer to do next (learn more about your business, turn their desire into purchase or repeat their order).
Using a marketing funnel in your business is important because you can measure the results of each funnel stage and use the information to improve various aspects of your business. It can also help you recognize why you’re losing customers or not gaining sales. For example, if there’s a drop of number between the first and second stage, it means you may need to fix your brand awareness campaign.
- Increase Sales by Presenting Choices
- Meet New People
- Understand That Failure Is Part of Success
- Eat, sleep and spend in moderation.
- Fully Determined
We hope this article has explained what marketing funnels are and how they work. If you don’t have one yet, it’s time to start building a funnel for your business.
Michael Ginarto is a successful entrepreneur with multiple experiences of building a company from the ground up. He can help you create effective marketing strategies in his business consultation, which you can book now.