June 5, 2023
The conversion funnel, also known as the sales funnel or marketing funnel, is a conceptual framework used in marketing and sales to illustrate the customer’s journey from the initial awareness of a product or service to making a purchase or taking a desired action. It represents the process of converting potential customers into actual customers.
The funnel metaphor is used because, at each stage of the customer journey, the number of prospects decreases, similar to how a funnel’s shape narrows down. The conversion funnel typically consists of several stages, which can vary depending on the specific business and industry. Here are the common stages:
- Awareness: This is the top of the funnel, where potential customers become aware of your brand, product, or service through various channels such as advertising, content marketing, social media, or word-of-mouth.
- Interest: Once people are aware of your offering, some of them may develop an interest and seek more information. They may visit your website, read blog posts, watch videos, or engage with your social media content to learn more.
- Consideration: In this stage, prospects are evaluating your offering and comparing it with alternatives. They might read product reviews, compare prices, request demos, or explore case studies to determine if your product or service meets their needs.
- Intent: At this stage, the prospects have shown a clear intent to make a purchase or take a specific action. They might add items to a shopping cart, subscribe to a newsletter, or initiate a free trial, indicating their readiness to move forward.
- Conversion: The conversion stage is where the actual purchase or desired action occurs. This could involve making a purchase, signing up for a service, filling out a form, or completing any other action that aligns with your business goals.
- Retention: After the conversion, the focus shifts to customer retention. It involves providing excellent customer service, follow-up communication, and delivering a positive experience to encourage repeat purchases and foster customer loyalty.
- Advocacy: In an ideal scenario, satisfied customers become advocates for your brand. They may share positive reviews, refer friends and colleagues, or engage in word-of-mouth marketing, which can attract new prospects to the awareness stage.
The conversion funnel helps businesses understand and optimise each stage of the customer journey. By identifying potential bottlenecks or areas of improvement, marketers and sales teams can implement strategies to enhance conversions and improve overall business performance.