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Why & How Marketing Funnels Work

A marketing funnel is used to plan how customers go from everyday citizens to consumers of your brand. These funnels work by shifting marketing efforts according to where the customer is on the funnel, and those efforts can be priorities and things to avoid, or the most thoughtful approach to take.

Funnels: What Are They?

an image of a marketing funnel

Marketing funnels show the journey a person takes from the moment they first interact with your brand to the moment they make a purchase. A marketing funnel has different stages corresponding to those stages. Customers are captured in the broadest portion of the funnel. Through marketing activities or direct communication, you engage these people to move them down the funnel.

In a simplified funnel, awareness, consideration, and conversion may be included. Awareness, interest, consideration, intent, evaluation, and purchase make up the funnel. Others add an advocacy inverse funnel. It is up to you whether your marketing funnel is segmented into three or ten sections.

Marketing funnels play a crucial role in the success of e-commerce businesses, offering a structured pathway that transforms fleeting growth into something more substantial and meaningful. Through the lens of these funnels, the often intricate landscape of marketing tactics becomes far more organized and comprehensible, empowering businesses to orchestrate their strategies with precision.

Marketing funnels can also build better relationships with customers, and there are a lot of questions you can answer much easier with the use of a funnel. Who is your target audience? What do they like? What kinds of marketing work well with them? Establishing a funnel will help you better understand your target audience and what they need to feel excited about buying from you.

Marketing Funnel: Impacted by Business Stages

Cultural trends, your products, and your business stage will affect your marketing funnel. We're evolving. In order to survive, a structure needs maintenance, care, and attention. Marketing funnels for established businesses differ significantly from those for startups. Brand awareness makes it easier to attract new customers. A high brand awareness will lower your acquisition and consideration costs, while a low brand awareness will increase your conversion rates. Getting new eyes on your products will take time and resources.

The income of a company determines its marketing budget. Paying for acquisitions and acquiring inventory increases revenue. Having limited marketing budgets, your tactics will differ. Organic blog posts, email marketing, and social media marketing.

The beginning of a prospect's journey with your brand is marked by their initial encounter, situating them at the apex of the marketing funnel. This pivotal juncture forms the bedrock of brand exploration, where the interplay of content and marketing materials assumes a role of major significance. This stage is inherently dedicated to fostering brand awareness, recognizing that prospects, in their engagement, often require a full understanding of your product or service.

It’s your job to use this stage to attract prospects and show them how you can help:

  • Your landing page or infographic should introduce your brand, service, or product to new visitors. By weaving together smart narratives and captivating visuals, these platforms unveil your brand, service, or product in a manner that resonates with the inquisitiveness of your audience.

  • Social media posts can highlight your unique selling proposition (USP). Social media posts serve as miniature narratives, expounding upon the distinctive features that set your brand apart.

  • On social media and in podcasts, advertising is relevant to your audience. The main thing is to make sure your ads match what your audience likes and is interested in. When this happens, your ads feel like they belong and connect well with what people care about. This makes them more interesting and relatable, rather than just looking like regular ads trying to sell something.

  • It’s also incredibly important to use this step to quickly build trust with your growing audience, and ensure that they believe in the messaging of your brand, as well as the product or service being provided.

  • Consideration is a crucial step.

Potential customers enter the middle of the funnel (MOFU) once they interact with your brand: by joining your email list, following you on social media, or attending a webinar.

Your brand can set itself apart from the competition at this stage:

  • Write an article or whitepaper for your potential customers. By delving into this endeavor, you're essentially offering a deep dive into topics or solutions that matter to your audience. This could involve addressing their pain points, providing insightful solutions, or discussing trends and insights relevant to their interests

  • Explore your brand's drivers, hooks, and barriers by surveying visitors. This entails surveying the visitors who interact with your brand, extracting valuable insights into what attracts them (the drivers), what keeps them engaged (the hooks), and what might potentially deter them (the barriers).

  • Comparing products and case studies is important. By meticulously comparing your products or services with alternatives available in the market, you empower your potential customers with a comprehensive overview. This transparency and openness resonate deeply, as it showcases your commitment to helping customers make well-informed choices.

  • For each customer segment, a landing page should be created. These landing pages function as personalized entry points, aligning seamlessly with the specific needs, preferences, and aspirations of each segment.

Asking potential customers questions can give you insight into how they shop. Here are a few open-ended questions

  • How did you find our website?

  • Is there something specific you're looking for?

  • Do you [take a specific action] based on what persuaded you?

  • Concerns or questions regarding [our product or service]?

The final step is conversion. It's the bottom of the funnel (BOFU) that converts prospective customers. Your relationship is developing; they trust you and pay attention to you.

Your brand should stand out from your competitors at this point:

  • Providing a free trial or demo is a great way to attract visitors.

  • Provide customers with how-to guides and articles to eliminate any doubt or barriers.

  • Testimonials and reviews build trust.

  • Comparing features and prices should be easy.

Customer Retention with E-Mail Marketing

Using segmented email marketing campaigns and on-site surveys-for example, sending emails to abandoned shopping carts or asking them to fill out exit surveys Customers experience marketing funnels differently. Customers may not be able to access your content at the top. The middle or bottom of the funnel might be the quickest place for someone who knows their problem and solution. You should tailor your marketing funnel to what your buyer wants, not what you want. Utilize psychographics and personas to understand why people buy.

K Cradley & Co discussing Marketing funnels with a client

Keeping Your Marketing Strategies Organized

Marketing funnels are a great way of planning marketing strategies for building customers. They can help narrow the scope of your research, and take the guesswork out of determining what customers are looking for when they search for your products or services.

Marketing funnels serve as a strategic compass for businesses, guiding them through the intricate terrain of customer engagement. Through careful segmentation and a profound understanding of your audience, marketing funnels facilitate tailored interactions that build meaningful relationships. These funnels not only amplify brand resonance but also empower businesses to navigate the diverse spectrum of customer needs, ultimately leading to sustainable growth and customer loyalty.

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