Funnel Vision: Marketing Funnels - What They Are, Why They Matter

If you’ve talked to any marketing professional that thinks pretty highly of themselves, you’ll notice that they love to throw all sorts of jargon around. One term you have likely heard is “funnel” or “marketing funnel.” If you’re like us, when people say things you’re maybe not sure about but kinda know, you just smile, nod, and hope you remember to look it up later. Maybe that’s how you found this article. Well, we’re here to give you a little rundown on everything you oughta know about marketing funnels.

Funnelly It’s Happened to Me: Understanding Marketing Funnels

Marketing funnels are actually pretty straightforward, but the stages through them can cause confusion. Marketing funnels represent the path potential customers take from the first time they interact with your brand to the time they (hopefully) make a purchase - and beyond that. Just like an actual funnel, this metaphor represents the narrowing process while your potential customers move through decisioning stages to determine if they’re going to make a purchase.

This isn’t just a funnel though, it has filters too. Fewer prospects make it through each stage until we reach the end where you’ve achieved success: a new customer. Each stage uses different strategies to move your potential customer to the next - when done correctly this results not only in sales, but also increased retention. Understanding funneling allows you to tailor marketing efforts addressing specific needs or behaviors of your audience at each stage of their journey. There are 7 stages of the funnel, so let’s break ‘em on down:

1. Awareness

This is where your potential customer first learns about you. Maybe through traditional advertising, social media marketing, a press release you distributed that was picked up (see How to Write a Press Release That Even Your Mom Will Share on Facebook), or some other effort you’ve made. Think of this like your plumage - drawing all those potential matches your way.

2. Interest

Now your potential customer is looking to learn more. What solutions do you offer?How can you help them? Once they know about you, it’s up to you to engage them by showing how you’ll solve their problems by providing solutions to their needs and valuable info for their interests. This can be done through email campaigns, blog posts, detailed guides, or other useful resources that resonate with your audience. Here you’re building trust and establishing yourself as an expert or, at the very least, someone who can help.

3. Consideration

Here is where you grow passing interest into the next stage. This is like an extended second date where you demonstrate that your solutions are better than the solutions offered by your competitors. Or maybe just why your audience should pick you over them. Giving your potential customer special attention like targeted emails, comparison guides, or even a free sample/trial. You’re still trying to win them over but they need a little push.

4. Intent

This stage is not entirely different from the previous one, but does have some differences. You know you’re on your potential customer’s mind, you know they want to commit because they may have items in their cart or have visited the shop a few times, you just have to give them a tiny extra reason - maybe a limited time offer, in-depth information about your product, or maybe they need to see some great things previous customers have had to say (we don’t recommend you try this tactic with dating though).

5. Decision/Purchase

Finally! Your customer is ready to make a purchase. Now you have to make it a smooth process and that there aren’t any obstacles in the way. If we’re talking e-commerce then a simplified checkout process, maybe customer support to assist if needed, or purchase incentives. For things that aren’t products, this can look like setting clear expectations on what happens next. Confirmation emails, thank you messages, or even upsell offers are all great ways to facilitate this step.

6. Loyalty

Once you seal the deal, you want them to stick around, right? Of course you do! You gain that loyalty through loyalty programs, follow-up messaging when appropriate, or maybe even personalized offers. This can look like punch cards, exclusive deals for repeat customers, or even as simple as customer appreciation posts. Once you’ve earned loyalty…. You move on to the final stage:

7. Advocacy

It’s not enough to win the purchase and then have repeat business - the ultimate stage is having your customers sing your praises to other potential customers. One way you do this is by having awesome products. In addition to that, you could implement referral programs, make use of user-generated content, and regular engagement with customers on your social media channels (check out Why Your Small Business Needs a Social Media Presence).

It's the Funnel Countdown

Being able to recognize and manage the flow of your potential and repeat customers in the marketing funnel will make your marketing efforts more effective than ever. Knowing where your audience is makes targeting them easier, allows you to more accurately identify their needs, and ultimately get your brand in front of more people and drive more sales. It’s a win all around! When you do all these things correctly, you’ll not only have an easier time figuring out what your audience needs but maximize your efforts and produce larger returns on your time investment. Better yet, you will build a lasting relationship that contributes to the continued success and growth of your brand. If you ever need a helping hand working through this stuff, we have all sorts of insight and thoughts to drive your success - just hit us up and let’s make some funnel cake. ;)