Do you know what a funnel is ? Have you ever heard of the famous conversion funnel ? If the answer is no, don’t worry, we’ll explain it to you here.
The funnel is simply a way of breaking down the customer journey from the product discovery stage to the moment they’re ready to purchase. This concept also applies to services.
But sometimes, the funnel is not limited only to the purchase, but also to later stages, such as post-sale customer service.
But what is the origin of all this? Well, we have to go back to the end of the last century, when Mr. Elias St. Elmo Lewis developed the model. He used the different stages of the relationship between a customer and a company as a reference .
This model, named AIDA from its initials, includes the following stages:
- Attention: During this phase, the client becomes aware of the problems they are having and the possible solutions.
- Interest: During this stage, the customer shows interest in certain products or services as a response to their need.
- Desire: Now the customer will begin to evaluate the available brands for the product or service in question.
- Action: This is the final stage where the potential customer determines whether or not to make a purchase.
What is a funnel for ?
A funnel is used to improve business planning and increase conversions . Here are some points that illustrate its usefulness in detail:
- It allows you to reduce the number of steps required to convert a person into a lead .
- It offers the possibility of optimizing your website, as well as attracting more customers and increasing sales.
- It allows establishing direct communication with potential clients.
- It offers the opportunity to optimize the investment .
- It allows us to better understand the real needs of customers.
Importance of the funnel in marketing
Any company starting a project and looking to maximize profitability can achieve this with the funnel . The main goal of any business is to have a low loss rate.
To maximize your customer conversion rates, they need to complete the various stages of the funnel . The funnel also shows you the number of users who abandon the purchasing process, so you can make better decisions to improve each stage .
This is where user behavior analysis comes in , which is of great importance. But to do so, it’s necessary to take into account several aspects:
Perhaps the most important indicator is knowing when customers exit the funnel. But it’s also interesting to know the overall churn rate .
In short, the marketing funnel provides a clearer idea of a company’s planning and resource allocation . It also provides valuable information for calculating your return on investment. You definitely can’t develop your marketing strategy without considering the sales funnel !
Advantages of the funnel
The advantages of using a conversion funnel are many. Here are some of them:
- Identifying process blackouts: These are the points where the conversion process breaks down and the user abandons the funnel. This is essential because it identifies the aspects that need to be addressed.
- Boost your business’s productivity: By knowing where your converting customers come from and what works for them, it’s easier to focus resources on the campaigns that are most productive for you.
- Know your customers better: A conversion funnel helps you understand your customer’s interests at each stage of the buying process. This is key to developing personalized campaigns.
- Improving sales team performance: Information is power, and a connected team with the necessary knowledge of your company’s conversion funnel and the challenges it faces is important.
- Recovering abandoned users: Retargeting techniques aim to re-engage with users who have interacted with the company but haven’t purchased anything. The company can add other characteristics to its buyer persona prototype based on these users’ data.
- Achieving more conversions: With all these analyses at your disposal, the advantage you have is the opportunity to increase conversions.
Disadvantages of the funnel
The disadvantages we can highlight with the funnel are few because it’s a tool designed solely to extract profits . However, the only drawback is that you have to be very clear about the steps you’re taking to avoid making poor decisions.
Funnel stages
Marketing experts use specific terminology to differentiate between the funnel phases . There are three: TOFU, MOFU, and BOFU , and we define them below:
- TOFU, or Top of the Funnel : in Spanish, it means the beginning of the funnel. It’s the first stage of the funnel , the top of the funnel, where the user knows they have a need and is looking for a solution. Therefore, at this point, the customer needs information that will help them decide on one product or service over another.
- MOFU, or Middle of the Funnel , translates as “middle of the funnel.” This is the second stage and is characterized by the user already knowing about the existence of a product or service from different brands, which they are evaluating. This is where a good content strategy becomes important so that your content selection works in your favor.
- BOFU, or Bottom of the Funnel , stands for “end of the funnel .” It’s the narrowest phase of the funnel. Its characteristic is that at this stage, the user is ready to make a purchase, but a final push is usually necessary. This can take the form of a discount or a free trial, which also builds brand loyalty. Motivate them!
Types of funnel that exist
There are three types of funnels that can be used to complete all kinds of purchasing processes. We’ll present them below:
- Lead capture funnel : The goal of this type of funnel is to convert your website visitors into valid leads . By nature, this type of capture funnel is very short because, in most cases, it involves getting users to leave their contact information in exchange for a lead magnet .
- Lead nurturing funnel : This funnel aims to improve your relationship with the potential customers in your database. How do you achieve this? By providing them with value before making the sale. During this process, you’ll increase your potential customers’ interest in what you offer. If, during this process, the potential customer shows a willingness, then it’s time to move on to the sales process.
- Online sales funnel : This aims to convert leads into customers. It’s recommended that the customers who enter are users who have shown interest during lead nurturing campaigns, that is, users who have gone through the lead cultivation funnel. Step by step!
Tips for achieving a funnel
If you’re wondering how to create a funnel , here are some tips that will be very useful:
- Work on your content marketing: One of the tools in the conversion funnel is content marketing, such as creating a blog. Many marketers seek to gain visibility and improve their rankings by leveraging this resource. You should do it too!
- Take advantage of the potential of social media: today’s customers trust the recommendations they receive from others when making a purchase. Therefore, being on social media helps you gain exposure and build trust. Create an entire community around your personal brand or business.
- Rely on Pay-Per-Click campaigns: Another tip for creating a successful conversion funnel is to use PPC campaigns to attract potential customers. Pay-per-Click is the most common methodology in the digital world. It’s recommended to use these campaigns to drive all traffic to a landing page . Exactly what you need to achieve!