When determining the steps necessary to turn potential customers into loyal brand ambassadors, look towards creating a marketing funnel chart.
The marketing funnel is a visual depiction of the path a customer takes from first interaction to purchase of your product or service.
Along with a clear visualization, you can measure the data at each stage of the journey to look for improvements in your marketing strategy.
In this tutorial, we will explore how you can create your own marketing funnel chart, and take a closer look at the individual stages of the funnel.
The Marketing Funnel Chart
A quick search for marketing funnels will lead you to unique takes on the process – some of which don’t even look like funnels!
There is not a single agreed-upon version of the funnel, as many differ based on industry. But, every one follows a similar path the customer takes from introduction to purchase.
Specifically, we can break down this process into multiple stages:
- Awareness: Customer knows about your company
- Interest: Customer sees a use for your product
- Evaluation: Customer is exploring their options
- Commitment: Customer chooses to do business with you
- Sale: Customer buys your product
Now that we can see the individual stages in the process, the funnel shape should start to make sense.
The largest pool of consumers will be the group that simply visits your store or website. With each changing stage, the pool of potential customers will continue to shrink.
Let’s take a closer look at these stages by breaking down the funnel into top, middle, and bottom.
Top of the Funnel (TOFU)
At the top of the funnel are consumers who are unaware or just being introduced to your company.
These consumers are not immediately interested in purchasing your products and may not think they even need your product. Some of these consumers lie in the Awareness stage listed earlier.
At this stage, you are simply trying to entice these consumers to come to take a look at what you have to offer.
Middle of the Funnel (MOFU)
Consumers in the Interest and Evaluation stages exist in the middle of the funnel. They have already been introduced to your company and are exploring the products and services you have to offer.
Here you can begin targeting returning users and personalizing your messaging. You should be positioning your company as the solution to the consumer’s problem.
Bottom of the Funnel (BOFU)
As a company, the goal is to guide as many consumers to the bottom of the funnel. Here, consumers are on the brink of a purchase and ready to decide.
At this stage, it is appropriate to try and sell your product or service, as opposed to consumers at the top. Most companies try to look beyond the bottom of the funnel and put an emphasis on retention which can make the pool of consumers at the top even bigger.
Building a funnel that is right for you
Let’s go through some quick steps to build a marketing funnel chart that is unique and appropriate to your company:
- Determine the target audience for your marketing funnel
- Determine what your marketing funnel should accomplish
- Build a fundamental path to purchase from top to bottom for your target audience
- Detail specific marketing tactics at each stage to get target audience through the funnel
- Determine the marketing metrics to track at each stage
- Once the funnel is complete, track your results and look for areas to optimize the customer experience.
The goal of the marketing funnel is to track customers through the buying process to optimize how you engage throughout their journey to improve conversions at each step.
As your company begins creating its first funnel, it is useful to note that as you expand your target audience, you should create additional charts to drill down into each unique target audience, their journey, and where they drop off
Once you launch your funnel chart, observing how many consumers enter and exit the different stages will allow you to identify where in the process you are succeeding or lacking.
Pairing this with appropriate marketing metrics will allow you to analyze each stage of the marketing funnel.