This detailed guide explains how the marketing funnel can be used to grow your business by exploring the strategies and tactics to be implemented at each stage of the funnel.
Businesses often jump into marketing activities without their overall strategy being evaluated. While tactics like social media campaigns, paid ads, or email marketing can result in quick wins, they risk being ineffective or short-lived without a clear strategic foundation. This is where your customers’ position in the marketing funnel must be mapped out.
The marketing funnel is used to understand the theoretical stages of a customer journey when interacting with a brand and purchasing a good or service.
Also often referred to as the “customer funnel,” “purchase funnel,” “sales funnel,” or “conversion funnel,” the marketing funnel is viewed as a model for determining where marketing tactics should be implemented for your business.
Previous posts on the marketing funnel can be read here.
Each stage of the marketing funnel should be analysed to understand customers’ needs and to decide which strategies and tactics should be employed to meet those needs at each point.
The following is a step-by-step guide on what to do at each stage of the marketing funnel.
Awareness Stage of the Marketing Funnel
How Customers are Exposed to the Brand, Product or Service
Signs That Customers Are in the Awareness Stage:
- Business website has low traffic, and the brand is relatively unknown in the market.
- Business is experiencing slow social media growth with limited reach and engagement.
- Potential customers often mention they have never heard of the brand.
For example, a local food and beverage startup might find that its social media followers are minimal and website visits primarily from direct traffic (people already know the brand). This indicates a need to increase brand visibility through broader awareness campaigns.
Strategic Focus
If most of the customers are in the awareness stage, the primary goal is to establish a clear brand identity and make a strong first impression. Market research, competitor analysis, and defining a unique business position are required to resonate with its target audience.
Key Strategic Questions to Consider:
- What problems are solved by the brand?
- How is the brand positioned uniquely in the market?
Tactical Actions to Consider:
- Investment in content marketing, including blogs, videos, and infographics, should be prioritised to introduce the brand.
- Social media and paid ads should be leveraged to increase visibility.
- Collaboration with influencers or industry partners should be explored to boost reach and credibility.
For example, a tech startup entering the market might launch a series of educational videos and infographics on LinkedIn, highlighting their innovative solution to a common industry problem.
Consideration Stage of the Marketing Funnel
Where Customers are Deciding Whether the Product or Service Fits Their Needs
Signs That Customers Are in the Consideration Stage:
- Website traffic is observed to be healthy, but the bounce rate (people who enter the site then leave without exploring other pages) is high.
- The brand is recognised, but potential customers frequently compare its offerings with competitors.
- Social media engagement and inquiries are received, but conversions do not occur.
For example, an online educational platform may notice an influx of course page visitors, but many users drop off without signing up. This suggests strong interest (awareness) but a lack of compelling information or differentiation to move them into the purchase stage.
Strategic Focus
If most of the customers are found to be in the consideration stage, the primary goal must be to establish brand authority and build trust with potential customers. Pain points should be addressed, and the brand must demonstrate why it is the best solution.
Key Strategic Questions to Consider:
- What content themes are addressing customers’ key concerns?
- How is differentiation from competitors being achieved?
Tactical Actions to Consider:
- Case studies and testimonials should be developed to showcase success stories.
- A comprehensive content strategy, including how-to guides, webinars, and FAQs, should be implemented.
- Retargeting ads should be utilised to keep the brand top of mind.
For example, a B2B service provider might publish detailed case studies demonstrating how they have solved similar problems for clients, paired with targeted LinkedIn ads promoting these success stories.
Purchase Stage of the Marketing Funnel
When Customers Buy a Product or Service
Signs That Customers Are in the Purchase Stage:
- High purchasing intent is displayed, such as items being added to shopping carts but with low completed transactions.
- Questions about pricing, payment options, or return policies are frequently asked, yet purchases do not materialise.
- Significant interest during sales promotions is observed, but cart abandonment remains high.
For example, an e-commerce retailer may find that while many customers start the checkout process, many abandon their carts. This indicates a friction point in the purchase stage, suggesting the need for smoother checkout experiences or better payment options.
Strategic Focus
If most of the customers are in the purchase stage, the primary goal must be to eliminate friction and streamline the buying process. Incentives and support should be offered to make purchasing as seamless as possible.
Key Strategic Questions to Consider:
- What barriers are preventing customers from converting?
- How can the purchase journey be simplified?
Tactical Actions to Consider:
- Website and checkout process should be optimised for ease of use.
- Clear calls-to-action (CTAs) and incentives, such as special offers or guarantees, should be provided.
- Customer support must be made readily available to address last-minute concerns.
For example, an online retailer might offer a limited-time discount and provide live chat support during checkout to assist hesitant buyers and prevent cart abandonment.
Advocacy Stage of the Marketing Funnel
When Customers Become Loyal Customers and Brand Evangelists
Signs That Customers Are in the Advocacy Stage:
- A solid base of returning customers is observed, with frequent repurchasing.
- Positive reviews and word-of-mouth referrals are generated.
- High levels of user-generated content and spontaneous brand mentions are received on social media.
For example, a premium skincare brand might notice that a significant portion of their sales comes from repeat customers who regularly post about their products on social media, tagging the brand. This shows strong advocacy and indicates an opportunity to amplify this loyalty through referral programmes or community engagement initiatives.
Strategic Focus
If most of the customers are identified as being in the advocacy stage, the primary focus should shift to ensuring that a community of loyal customers is built who act as brand ambassadors. Relationships with customers must be nurtured, and word-of-mouth marketing should be encouraged.
Key Strategic Questions to Consider:
- How can loyal customers be rewarded?
- What engagement opportunities can be created for advocates?
Tactical Actions to Consider:
- A loyalty programme offering rewards for repeat purchases and referrals should be implemented.
- A community platform (e.g., a Facebook group or customer forum) can be developed for customers to share experiences and connect with the brand.
- User-generated content, such as reviews and social media posts, should be encouraged to amplify the brand’s reach.
For example, a fitness brand might launch a referral programme in which existing customers earn points to be exchanged for rewards for every new customer they bring in. This programme would complement this vibrant online community where customers can share their progress and experiences.
WORK THROUGH THE MARKETING FUNNEL STAGE BY STAGE
Understanding where customers are in their buying journey is crucial to ensuring effective marketing. By identifying each stage of the journey, businesses can ensure their strategies and tactics are aligned with it.
The process is initiated with the Awareness Stage, where visibility is established, and a strong first impression is made through activities like content marketing and social media campaigns.
As customers move into the Consideration Stage, the emphasis is shifted to building trust and authority by addressing customer pain points with in-depth content, case studies, and targeted engagement.
In the Purchase Stage, the goal becomes the elimination of barriers and the creation of a seamless buying experience, whether through optimised checkout processes or clear incentives like discounts and guarantees.
Finally, the Advocacy Stage requires the nurturing of loyalty and the amplification of word-of-mouth referrals through strategies like loyalty programmes, user-generated content, and vibrant customer communities.
The table below provides an overview of how customers’ needs should be addressed at each stage of the marketing funnel:
|
Stage |
Strategic Focus |
Tactical Actions |
|
Awareness |
Brand positioning and market entry |
Content marketing, paid ads, influencer partnerships |
|
Consideration |
Trust building and brand authority |
Case studies, retargeting, educational content |
|
Purchase |
Seamless conversion pathways |
Checkout optimisation, special offers, live support |
|
Advocacy |
Building a loyal customer community |
Loyalty programmes, community engagement, UGC |
Each stage requires a tailored approach, but collectively, they form a cohesive roadmap for converting prospects into loyal advocates.
UNLOCK YOUR MARKETING FUNNEL STRATEGY
While the marketing funnel is conceptually simple, executing strategies effectively demands a deep understanding of consumer behaviour, market dynamics, and tactical expertise.
For businesses looking to unlock the full potential of the marketing funnel, it is highly recommended to consider engaging marketing professionals who can craft and execute comprehensive strategies.
Evolve & Adapt, regularly works with clients to analyse each stage of their customer journey and make the most effective recommendations for implementing strategies and tactics.
If you would like us to apply our “Strategy Before Tactics” approach to your business, contact us for a complimentary discovery call to learn how we can grow it with meaningful and lasting results.
