Attracting customers is nearly impossible without a well-planned marketing funnel, so you must know how to use funnels intelligently and optimize them for marketing activities.
In this article, you’ll discover how to build a digital marketing funnel that consistently brings in new prospects, leads and customers.
What is a marketing funnel?
A marketing funnel describes the customer journey from initial brand awareness to purchase decision and advocacy.
Businesses use the marketing funnel to provide targeted, resonant content and advice along the customer journey.
The goal is to increase sales by addressing specific needs that help customers make decisions. When prospects see tailored messaging that addresses their pain points, they feel more affinity for your brand.
The marketing funnel outlines the distinct stages of a customer’s journey, as shown in this image:
Businesses that plan out a marketing funnel can improve and optimize their marketing tactics while allocating resources effectively.
Marketing funnel vs. sales funnel vs. conversion funnel: what’s the difference?
The terms marketing funnel, sales funnel and conversion funnel are often used interchangeably in online marketing, but they have distinct purposes. Here’s how they differ:
Marketing funnel | Focuses on casting a wide net to attract potential customers |
Sales funnel | Focuses on turning leads you’ve already attracted into paying customers |
Conversion funnel | Combines marketing and sales to focus on the entire customer experience, from awareness to the purchase stage |
The marketing funnel prioritizes creating brand awareness through content marketing that fosters interest, trust and an emotional connection with potential customers.
Lead generation is a critical part of both the sales and marketing funnels.
The final stage of the marketing funnel is usually a sale or conversion, but some marketing funnels include customer marketing activities, like upselling and cross-selling. The sales funnel continues beyond the sale to include account management.
Ideally, the final stages of the marketing funnel transition smoothly into the sales funnel to ensure the intent to buy translates into an actual purchase.
Top, middle and bottom of the funnel: the structure of a marketing funnel
As the name suggests, a digital marketing funnel starts broad at the top and narrows down. There are three phases in the marketing funnel:
Top of funnel | Your brand captures the potential customer’s attention |
Middle of funnel | The potential customer expresses interest and begins to desire the product |
Bottom of funnel | The customer takes action with a purchase (and the marketing funnel becomes the sales funnel) |
Let’s look more closely at each stage.
Top of the funnel: awareness stage
The top of the funnel, or awareness stage, is about capturing prospective customers’ attention. This phase is their first contact with a company.
Typically, you inform them of particular challenges and needs to help them understand why your topics and products are relevant.
A social media ad promoting a free webinar could be the top-of-funnel element, attracting attention. The next step could be a nurture sequence with helpful emails, culminating in a product demo and sales offer – a classic marketing funnel example.
Possible content formats for TOFU include:
SEO-optimized blog articles on introductory topics
Social media posts
Facebook, Instagram and LinkedIn ads
Outdoor advertising
Webinars
Building brand awareness and generating leads at this stage will pay off later.
Middle of the funnel: consideration stage
In the middle of the funnel, you spur interest in your offerings and build customer trust. Build interest by creating content that provides helpful solutions and introduces products that meet prospects’ challenges.
Possible content formats for MOFU include:
SEO blog articles, for example, in a guide format
Lead magnets such as e-books, whitepapers and checklists
Webinars
In this stage, you engage and inform prospects, getting them closer to a purchase decision.
Bottom of the funnel: decision stage
At the bottom of the funnel, you answer questions about your products, address possible concerns and invite a purchase.
Possible content formats for BOFU include:
Product trials
Tutorials and walkthroughs
Product fact sheets with pricing information
Sales events
Testimonials
Note: This last stage doesn’t only involve one-time purchases. The rest of the funnel can also give people a reason to choose your product, making it more likely they’ll convert into brand advocates who join loyalty programs. Increased retention turns into customer lifetime value (CLV) and a longstanding relationship with the business.
6 steps to a successful online marketing funnel
Building a funnel that fits your business needs and converts well takes proper planning. Follow these six steps:
1. Define the goal
Without a clear goal, your marketing funnel will falter. Define what success looks like for you and how you’ll measure each milestone. For example, “We want to generate 500 new qualified leads and achieve 100 sales monthly”.
2. Identify the target audience
Your marketing efforts must reach the right people, so consider your target audience. Conduct a target audience analysis and define buyer personas to learn demographics, needs and preferences.
Gather direct feedback through first-person surveys and interviews (virtually or in-person). Store all the information you gather in a customer relationship management (CRM) system like Pipedrive for easy access.
3. Map the customer journey
Map the customer journey since it determines the structure of the marketing funnel. Represent every type of customer and touchpoint that fits your business.
Pipedrive offers a template to help you visualize each customer and how they interact with you at each stage in the journey. Complete one for each type of customer to see how they approach the journey differently.
This model will help you gain deeper insights and improve workflows.
Download our customer journey map template
4. Outline the marketing funnel
Conceptualize your content marketing funnel based on the customer journey. Consider what resources would best support your loyal customers at each touchpoint and prompt them to act.
Use the marketing funnel image above as a model, or create one that fits your company’s needs.
5. Create content
Once you’ve completed the marketing funnel outline, start producing content that addresses pain points. Publish blog articles, newsletters, e-books and social media posts consistently, ensuring each has a call to action. Post the content on your marketing channels to tap into search engine optimization (SEO).
6. Analyze and optimize the funnel
Marketing funnels usually aren’t perfect from the start. Review data and performance metrics regularly (e.g., conversion and retention rates) to identify what’s working and where there’s room for improvement.
Work systematically to improve each stage. Enhance the funnel’s conversion rate, adjusting one element at a time to track which changes boost performance. For example, you could institute a referral program with benefits for new and repeat customers.
Have a mindset of continuous improvement, making changes based on customer feedback. Determine what works best for your company and its goals.
Final thoughts
Marketing funnels provide a structure and framework for the buyer’s journey. They map the different stages of the decision process and show how to guide customers through them.
Additionally, analyzing the full funnel helps identify problem areas in your marketing campaigns, ways to improve conversion rates and new revenue streams.
A well-constructed funnel ensures your business remains competitive and continues to attract new customers. Use the tips in this piece to maximize the effectiveness of your marketing strategy efforts and investment.
