Know about the basic steps in funnel marketing

Funnel marketing is a concept of turning prospects into customers from a marketing or sales perspective. The idea is like a funnel wherein marketers attract many leads and nurture prospects for purchase, eventually narrowing down leads at each stage. Most businesses have marketing funnels. However, the strategy may differ. If you are looking for ways to grow your business, continue reading this beginner’s guide to understanding the basics of funnel marketing.

What is a marketing funnel?
A marketing funnel is a customer journey with your business that can completely transform the reach, impact, and revenue. Funnel marketing is also referred to as sales funnels, leads funnels, buying funnels, conversion funnels, and others. A marketing funnel helps visualize the buyer’s journey through several steps like an actual funnel. Following down the funnel, marketers put effort to capture, guiding, and transforming potential leads to buyers. The funnel gets smaller after each stage due to the marketing productivity of each company because not all leads can stay until the end of the funnel and generate revenue.

Types of funnel marketing
Funnel marketing is a wide term that covers many used cases. You may come across many types of marketing funnels, such as lead magnet funnels, list building funnels, webinar funnels, social media marketing funnels, video sales funnel, and email funnels. The type of funnel marketing used depends on your business goal. For instance, if you wish to build contacts for an event, you may use list-building funnels, or if you want to sell a product or service, you may use social media, video sales, or email funnels.

Stages of funnel marketing
Funnel marketing is based on the classic AIDA model that stands for awareness (or attention), interest, desire, and action. It was introduced by Elias St. Elmo Lewis around the end of the 20th century. Awareness is the first stage of the funnel when leads are attracted to the websites by advertising or marketing tools. In the “interest” stage, customers have opportunities to get a better understanding of the products or services to form certain buying interests. The “desire” stage gets buyers to develop a liking towards the brand and attempt to fulfill one’s desire to buy the brand’s product. The “action” stage is when the customers have decided to go through the buying process. The marketing funnel may often be divided into the top of the funnel (TOFU), middle of the funnel (MOFU), and bottom of the funnel (BOFU) that have similar associated points of the AIDA model. It is important to note that not all marketing funnels begin with the first stage. Sometimes, customers bounce in and out of the funnel before they convert, or they make it to the bottom stage and never convert. Therefore, it is vital to understand a customer’s journey from the moment of awareness to conversion.

What is a marketing funnel?
A marketing funnel is a customer journey with your business that can completely transform the reach, impact, and revenue. Funnel marketing is also referred to as sales funnels, leads funnels, buying funnels, conversion funnels, and others. A marketing funnel helps visualize the buyer’s journey through several steps like an actual funnel. Following down the funnel, marketers capture, guide, and transform potential leads to buyers. The funnel gets smaller after each stage due to the marketing productivity of each company because not all leads can stay until the end of the funnel and generate revenue.

Types of funnel marketing
Funnel marketing is a broad term that covers many used cases. You may come across many types of marketing funnels, such as lead magnet funnels, list building funnels, webinar funnels, social media marketing funnels, video sales funnel, and email funnels. The type of funnel marketing used depends on your business goal. For instance, if you wish to build contacts for an event, you may use list-building funnels, or if you want to sell a product or service, you may use social media, video sales, or email funnels.

Stages of funnel marketing
Funnel marketing is based on the classic AIDA model for awareness (or attention), interest, desire, and action. It was introduced by Elias St. Elmo Lewis around the end of the 20th century. Awareness is the first stage of the funnel when leads are attracted to the websites by advertising or marketing tools. In the “interest” stage, customers have opportunities to understand better the products or services to form specific buying interests. The “desire” stage gets buyers to develop a liking towards the brand and attempt to fulfill one’s desire to buy the brand’s product. The “action” stage is when the customers have decided to go through the buying process. The marketing funnel may often be divided into the top of the funnel (TOFU), middle of the funnel (MOFU), and bottom of the funnel (BOFU) that have similar associated points of the AIDA model. It is important to note that not all marketing funnels begin with the first stage. Sometimes, customers bounce in and out of the funnel before they convert or make it to the bottom stage and never convert. Therefore, it is vital to understand a customer’s journey from the moment of awareness to conversion.

How to create a marketing funnel?
Creating a marketing funnel is not something you do in a day. It takes time and a lot of testing. First, you can define your target audience and focus only on the most likely-to-convert segments. You can create landing pages, infographics, or social media posts to tell new customers about your brand. Highlight your brand’s USP (unique selling point) here. You can also run paid ads. Before doing this, you should optimize all methods of communication, such as mobile, websites, and emails. Do not ask to buy your product immediately if there is a lead. Engage prospects with surveys, share case studies or compare products. Finally, provide a demo or trial version of your product. Share customer reviews, highlight your brand, and run segmented conversion campaigns. Experiment with different methods and find the one that works best for your business.

Marketing funnel metrics to use
Once you have implemented your funnel strategy, measure your cost per acquisition (CPA) to determine how much you’re spending to get a single new customer. Calculate your gain or losses by dividing your entire marketing campaign cost by the number of prospects. If the cost outweighs the gain, consider alternating your strategy. Next, measure the LTV or customer lifetime value to get an insight into how much your customers are willing to pay for your product or services. It is essential to measure the conversion rate through each stage (like TOFU and BOFU) and channel of the funnel marketing like organic search, paid ads, referrals, influencers, and emails. This will help you understand your gaps at each point and be beneficial in making an informed decision in the future.

is a lead, do not ask to buy your product immediately. Engage prospects with surveys, share case studies or compare products. Finally, provide a demo or trial version of your product. Share customer reviews, highlight your brand, and run segmented conversion campaigns. Experiment with different methods and find the one that works best for your business.

Marketing funnel metrics to use
Once you have implemented your funnel strategy, measure your cost per acquisition (CPA) to find out how much you’re spending to get a single new customer. Calculate your gain or losses by dividing your entire marketing campaign cost by the number of prospects. If the cost outweighs the gain, consider alternating your strategy. Next, measure the LTV or customer lifetime value to get an insight into how much your customers are willing to pay for your product or services. It is important to measure the conversion rate through each stage (like TOFU and BOFU) and channel of the funnel marketing like organic search, paid ads, referrals, influencers, and emails. This will help you understand your gaps at each point and be beneficial in making an informed decision in the future.