Learn What it is and Why it Matters
Every business wants to convert interested parties into paying customers. Stakeholders don’t always realize they can set the course and create a roadmap for their customers. From the top down, a marketing funnel is a way to visualize the path those individuals take. When you understand each stage of the marketing funnel, it is possible to quickly and effectively identify the needs of your target audience and move them along the journey.
Defining the marketing funnel
The classic framework of a marketing funnel is the AIDA model. It is an acronym for attention, interest, desire, and action. In today’s digital age, the funnel can be a bit more expansive and include additional stages:
- Awareness. A future customer understands their wants and/or needs and finds your business as a possible problem solver.
- Interest. Leads learn more about your company and offerings. At this stage, brands should nurture leads via newsletters or targeted emails.
- Consideration. At this stage, the interested party is more of a prospect. They want additional information about your products or services. Marketers want to continue nurturing, sending free offers or case studies to help in decision making.
- Intent. Prospective customers demonstrate their interest in purchasing from you. Note that this stage isn’t always a deal closer; they may only put something in the online shopping cart and not finalize their purchase. At this stage, you want to make a strong case about why your product is the best choice. Consider automated messages to remind the user and offer a demo or other assistance.
- Evaluation. The prospect converts at this stage and makes a final decision to commit and buy from you or not.
- Purchase. Now the prospect is a customer. The marketing efforts don’t end here. Reach out to ensure a positive experience, and remember it can lead to loyal returning customers and referrals that send interested parties back to the top of the funnel.
Marketing funnel benefits
It’s important to keep in mind that while everyone may come to the top of the funnel by visiting your website or engaging in a marketing campaign, not every person will make it to the end. Only the most curious visitors will move further down, and the most interested will convert to customers.
Not getting that conversion does not mean your marketing funnel has failed; there are still many benefits. Consider the following:
- Developing better customer relationships. You can better understand your target audience when you establish a marketing funnel. You see what they get excited about, and if they abandon the process, you discover what they don’t like. The funnel helps you optimize your marketing efforts, establish, and cultivate relationships that will be beneficial moving forward.
- Measurability. This may be the most significant benefit because you’ll collect data along the journey that shows you exactly where you’re losing customers. With that insight, you’ll be able to make significant shifts in your marketing campaigns to direct to more successful steps.
- Encourages growth. When you get a clearer understanding of effective marketing tactics, you can leverage them to increase awareness. Consider this a much wider top of your funnel that pulls more interested parties in to move through the funnel.
- Better forecasting. Once you are aware of your conversion rate, you can more accurately forecast your sales volume and master the purchase cycle. Not only does it help you run your business more efficiently, you can also manage your marketing campaigns more effectively.
Need help with your funnel?
If you need help understanding, setting up or refining your marketing funnel, just give us a call. Chat with the T.E. Digital team to discuss your goals and target audience. Consultations are free. We can help you find ways to create a marketing strategy that incorporates efforts that are best for your brand.