The marketing funnel is a process that identifies the stages a consumer goes through until purchasing a brand’s product or service. Potential customers, who initially know little to nothing about the brand or its products, gradually consider purchasing and can even become loyal customers as they progress through the different stages of the funnel. Or they can halt altogether in the first step.
Understanding each stage of this process allows companies to target campaigns more precisely and attract and convert customers while also retaining them. Let’s explore each stage of the conversion funnel and how to impact consumers in its different stages.
What is the marketing funnel?
As mentioned, the marketing funnel visually represents the customer journey from discovering a brand to purchasing, ideally encouraging future returns. The funnel narrows as not all users complete the journey; many exit at various stages.
Understanding the customer’s journey helps businesses to identify what makes customers make a purchase, which advertising campaigns impact them the most, how they contribute to branding or sales, and where they might be losing customers, adjusting their strategies accordingly to reduce losses and increase profit.
Key stages of the marketing funnel
While stages can vary according to each model, which can be more or less detailed, the primary phases of the marketing funnel typically include:
- Awareness (Top of the Funnel – TOFU):
At this stage, the goal is to reach and impact as many consumers as possible. This is where branding strategies come in and are executed through social media, blogs, online ads, DOOH ads, Broad Search ads, SEO, and more. This is usually consumers’ first contact with a brand, so the message should be clear and mostly informative to build trust and lead to consideration. - Consideration (Middle of the Funnel – MOFU):
In the mid-funnel stage, potential customers have shown some interest in the brand or product. Companies must keep building trust, showing how their products or services solve specific consumer problems. Organic content is everything at this point, with social media playing a huge role since customers tend to check comments on posts, other customers’ opinions, and the brand’s reputation in general. For B2B companies, having case studies on display or easily accessible is crucial. In some cases, when lead generation campaigns are applied during the awareness stage, email marketing strategies are also very powerful during this step. - Conversion (Bottom of the Funnel – BOFU):
In this “final” stage, the objective is to turn prospects into customers. This can be achieved through effective calls-to-action, promotions, discounts, product demos, and an intuitive online buying experience. The key is to look for opportunities to provide the final nudge the customer needs to “add to the cart” and make a purchase. - Retention and Loyalty (Post-funnel):
Once a purchase is made, the funnel doesn’t end (or it shouldn’t). Retaining customers and building loyalty maximizes their value, helps make your business sustainable, and can even lead to creating brand advocates. Email marketing campaigns, loyalty programs, exclusive content and discounts, satisfaction surveys, and excellent customer service are essential to remind consumers of their positive experiences and make them want to repurchase.
How can understanding the marketing funnel help your advertising efforts?
A. Resource optimization and focus
The marketing funnel allows companies to allocate resources more efficiently, pinpointing where to put more or less effort. For example, if 80% of users drop off in the consideration phase, it makes sense to analyze and improve strategies to reduce customer loss.
B. Creating relevant content at each stage
Each stage of the funnel requires specific content and ads that connect with the customer’s needs and mindset. This personalization not only enhances campaign effectiveness but also creates a smoother, more coherent user experience.
C. Increasing conversion rates
Following the funnel reduces friction in the buying process. By understanding customer behavior and needs at each stage, companies can implement actions that facilitate movement from one phase to the next, thus increasing conversion likelihood.
D. Fostering loyalty and long-term customer value
A well-designed funnel isn’t just about closing sales; it also prioritizes building long-term customer relationships. This not only boosts retention but creates brand advocates who recommend products and services to others, expanding the company’s reach and credibility.
Tips to improve your ad efforts using the conversion funnel as a guide
- Analyze drop-off points: Identify where potential customers tend to exit the funnel and optimize them.
- Use automation: Marketing automation tools enable more efficient user nurturing through the funnel, personalizing the experience based on interactions.
- Create valuable content: Ensure each message, whether in organic content or paid ads, aligns with the needs of future customers at each stage, whether informative, comparative, or persuasive, and contributes to brand reputation.
- Test continuously: Marketing isn’t static, so testing and analyzing different approaches will allow you to continually refine campaigns for better results.
Understanding the marketing funnel and user behavior throughout it, is an essential process to determine the right tactic for each campaign and effectively impact users, from discovery to loyalty. It enables companies to create tailored advertising strategies and build a loyal and engaged customer base.
Tidart’s expert team knows how to impact users in every stage of the funnel, click here for more information.
