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Marketing Funnel Explained (for Non-Marketers)

Have you ever wondered if the journey of your customer is trackable or even viewable? I have good news for you – it is. You can – in many cases – track how many people know about your business, how many of them consider purchasing your goods and, of course, how many already bought and referred your product to a friend. Being able to view the customer journey, optimise its steps and analyze your efforts is crucial for any kind of business. Trust me, the size does not matter (in this case). Every business should do it.


Marketing funnel is a term that resonates with the majority of marketers. They tend to use this model to illustrate the customer journey – from brand discovery to purchase. As stated, measuring every step of the funnel brings you a much better overview of your efforts and, thus, a higher return on investment, which is your goal, isn't it? The more you can get out of every stage of your customer's journey, the better the results are in terms of number count or revenue.


Let's say your customer journey has three main phases:


Three main phases of the customer journey (attention, consideration, decision)
The Three Main Phases of Customer Journey

Please note that in this case we don't cover the scenarios that happen after the purchase is made (retention funnel).


Each stage represents a different behaviour stage of your potential customer. Say she has a problem which she is able to name. She begins to search for a solution – which you offer with your product or service. As soon as she discovers your business – among others – offers the solution she is already in the awareness stage.


Your presentation, product, its price and other factors determine whether she will move further on the journey. The consideration stage, needless to say, is a phase in which a potential customer already considers your product, is comparing it to your competitors and is aware of its pros and cons.


Decision. That's the phase we aim for. We want her to buy our product, right? That's when a decision is made. In this stage, your potential customer has already conducted the research, has chosen you over your competitors and is happy to buy what you have to offer


We just described (in a very simple way) what a customer journey can look like. Sometimes it takes weeks to guide her through all stages of the journey, sometimes it is a matter of minutes. Imagine yourself buying a coffee in the city center. You probably don't do any thorough research, but you certainly look for coffee quality and price. You don't spend days comparing the product to other cafés or bars. You make the decision according to a few key factors. Your journey is fast and your decision is made pretty quickly. But it does not mean the café owner should not pay attention to the key factors, like what the café window looks like, or if their prices are reasonable, as it influences the customer's journey.


The customer journey can easily be viewed as a funnel. Therefore, marketers use it to analyze their efforts. To explain the basic idea behind the marketing funnel, let's use the widely-known model AIDA which stands for attention, interest, desire and action. Each of these phases represent a stage in which you might find your customers. 


Obviously, your ultimate goal is to guide them through the stages without friction and in the shortest time possible. 


Let us look at an example of a basic marketing funnel:


AIDA - Attention, Interest, Desire, Action

People obviously start at the top – marketers call it the top funnel. This represents the awareness stage. As customers move further in the funnel, they know more about you and your offer and start, as well as continue to consider it more and more. 


Here is what a perfect marketing funnel would look like:


Example of a Perfect Marketing Funnel

This would mean that everyone who discovers your product will decide to purchase. Going back to our example, 100% of the people who enter your café will buy a coffee. Of course, that's a seller's utopia. In an ideal world, this would work, not in the real one.


Your task is to carefully measure your funnel and optimize its steps.


Let's finally give a more concrete example of what a marketing funnel can look like in your case. Say you run a real estate business, and aim to attract potential house buyers with your website. That's also where you generate leads that you can then convert. Your main channels would be:

  • social media or ads on Google or Youtube
  • a website
  • a chat or phone call


You would try to attract as many people as possible with your marketing budget and lead them to your website to show all the products or services you have. After they land on the website, ideally you want them to fill out a form, in case, they are interested in a particular offer. As soon as they do so, you connect with them via phone or email and find out whether their interest can lead to a conversion. 


This is what your funnel would look like:

Example of Marketing Funnel

Let's do some math now. Say your marketing efforts help you reach 10,000 people with your ad. 3% of them interact with your ad and visit your website. That would mean you have 300 people on your website, right? 


How many of these people are you able to convert into leads? That depends on how your website attracts its users and how juicy your offer is, doesn't it? Let's say you have a 10% conversion rate (10% of website visitors convert into leads). In this case, you would have 30 leads waiting to be contacted. 


How many of them can you convert into sales? Again, factors like your response time, will play their role now. If you made it to 50%, you just made 15 sales. Now go back and think about what can be improved...


You can see that there are more factors that influence the efficiency of your funnel (and your efforts). One bit of advice would be: measure each step of the funnel, focus on the customer and do your best to improve the areas where it falters! 


Going back to our example, simply by making your ad more appealing, you can increase your outcome from 3% to 6% which (if other metrics don't change) make 30 sales at the end of the day! Improve your website from 10% conversion rate to 15% and you almost hit the sky… You know where I am heading, right?


You may be wondering where you can get all of this data? Tools like Google Analytics, Google Ads, Facebook Business Manager or our own app that simplifies the process of ad management, can give you great insights into how many people you reached, how many of them interacted with your content, how many made it to the website and finally, how many were converted into leads. There is a plethora of ways to measure your marketing funnel – the customer journey. Even a piece of paper and good data sources can create miracles… 


One thing is for sure: if you don't measure your efforts carefully, you may be investing money and energy into something which does not bring you results at all.


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Where Can You Publish Your Ads?

Today's online services have one major advantage. They track users and collect information about them and segment it accurately. This is a huge advantage for advertisers because they can specify their target audience precisely, so that an ad is shown only to a relevant people.


Surely, you come across such ads daily. On Facebook, Google Search… lots of you have probably tried to publish similar types of ads on these platforms.


Facebook and Google are obviously dominants of the PPC ads market. But did you know that there are a number of other platforms where you can advertise in a similar way?


You may think that this is unnecessary, when most internet users are using Facebook or Google and their services. Yes, it is true, but it doesn't mean your ad will be effective on these platforms.


Each user behaves differently on different platforms, which means that he can be immune to your Facebook advertising, for example, because he only goes there in the evenings to watch some funny videos, so advertising for selling real estate is not relevant to him. Maybe, in the morning, when he opens Linkedin, he is in a completely different state of mind and is ready to see the ad and take action.


The goal of this article is to list relevant platforms where you can advertise your services. To find out which platform is most effective for you, read this article.

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One Channel Dependency Might Kill My Business!?

Is all your revenue coming from one source? That's a huge risk! Using a single sales and/ or marketing channel to market your business might be a fatal mistake for you. Single-source dependency means over-reliance on one thing and that could ruin your business. It's like having no backup. As much as you diversify your effort into various marketing channels and revenue sources, it’s unavoidable that you find a disparity in results. But that’s not to say you should stop doing it. You never know when a small revenue driver can become your main income and vice versa. 


Some businesses are dependent on one revenue source so they make themselves unduly exposed to forces outside their control. What if that source is over?


For lots of businesses this source is Google, when sales are primarily driven through Google Ads. And they take huge hits when a new competitor outbids them. 


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10 Marketing Books You Shouldn't Miss

Books have been a main source of information for a long time and although we can’t exactly say that today, they’re still very important. Lots of people still read books to educate themselves.  Even though the internet is now overshining our good old books, it doesn't mean that there aren't great works of literature anymore. If you keep on walking around the marketing section in your favorite bookstore and you just can't decide which one you should read, here's your new TO READ list.

Maybe one of them is exactly what you're searching for.


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Do Your Marketing Right in 2020

Marketing is an ever-changing field and the methods that work aren’t usually long term. Are you having a hard time navigating the latest trends and the most efficient ways to optimize your content? Don’t worry, because most people struggle with the exact same thing. Here are 10 up-to-date tips for online marketing.

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How to Target People According Their Location on Facebook

How do you catch potential customers that are near you? How do you target people according to their location?

Do you have a house to sell and you want to find a buyer in your area? Or do you run a small hot dog stand and want to sell more of your delicious repast? Try to target the people that are near your business!

Is your stock full of T-shirts that say, “I ♥ Boston” and you want to sell them? Target the real Bostonians!

Facebook simply allows you to target people according to their geographic locations. You can sort your audience broadly or very specifically. That means you can target the whole country, state or region, city, zip/postal code, and if you have a store, you can use the option for your very own business address that is to be set on your Business Manager page.

Geo Targeting Options Facebook
Geo Targeting Options on Facebook
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