Why You Must Have A Marketing Funnel

If you have a business, then you probably have funnels in place and you don’t even realize it. If you have a website, you already have a funnel. That’s because funnels aren’t just for marketing although they overlap with marketing in some ways. So let’s explore what a funnel really is.

A marketing funnel is visually represented by the same type of funnel used in cooking or automotive work. It’s a conical object with a large hole at the top and a small hole at the bottom. An example is a funnel used to pour oil from a container into the oil compartment of your car. And a marketing funnel would do the same thing- to ensure every person completes a specific task. However, this is not always the case. The entire customer list will enter the funnel at the top but unlike the funnel used in cooking or in automotive work, not everyone from the customer lists makes it to the bottom. You end up losing people along the way but your goal is to get as many of the right customers for the offer through the funnel so that they take action.

A marketing funnel is a more practical approach to matching marketing strategies and tactics (including email marketing) to customers’ purchasing behaviors. To understand the marketing funnel, you first have to understand customer purchasing behaviors and processes.

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For example, if you have an unlimited marketing budget and you want to promote your new product to get people to buy it for the first time. You buy an ad to play during the World Cup soccer final. Obviously, a big massive audience will get to see your product and this massive audience will get to the top of your marketing funnel. However, most of these people are not going to buy your product today or in the near future. They’re simply not the right match for a variety of reasons. With a marketing funnel, you invest time and money to move people through the funnel until they take action but not everyone has the funds to invest in an audience of this massive size. The goal is to maximize the number of people who make it at each stage of the funnel without paying for people who are unlikely to complete the action you want them to take.

Marketers use email messages, content advertisements, and more to move people through the marketing funnel, and depending on the industry, the product, and the type of audience, a large pool of potential customers is filtered into the smaller pool until finally, a group of consumers make it to the bottom of the funnel and complete the action e.g., to make a purchase.

The marketing funnel is divided into 3 parts, the top, middle and bottom parts.

Top of the Funnel (TOFU)

At the top of the funnel is everyone who isn’t ready to buy yet. Your goal at this stage is to raise awareness of your product, service, or brand and attract a large audience. You want to fill up the funnel with as many leads as possible.

Middle of the Funnel (MOFU)

People in the middle of the funnel have already started researching products, services, or brands. They are gathering information to help them make an informed decision on whether to make a purchase. With the information, they have narrowed down their selections to a small set of preferred products or services, or brands.

Bottom of the Funnel (BOFU)

People at the bottom of the funnel are very close to taking action. At this stage, it is time to convince them to act. This is the time when you can close the sale or motivate them to pick up the phone. In other words, people at the bottom of the funnel are ready to hear about your product, service, or brand. They are the tipping point and you have to determine the type of messages, information, or promotions that will give them the last push for them to act.

The Consumer Buying Cycle

The marketing funnel directly relates to the consumer buying cycle. Consumers’ buying pattern has evolved over the years and marketers and salesperson have to adapt and adjust to these changes. For example, a person thinking about changing his computer is not ready to make a purchase yet. He is still at the early stage of the buying cycle. He has a problem and is just starting to look at the options available by looking at the vast information available.

There are actually 5 primary steps in today’s Consumer Buying Cycle.

1. Not in the market yet

The consumer has not identified a problem that has created a want or need and therefore, they are not in the market for a product or service.

2. Problem Identified

The consumer has identified a problem and this creates a want or a need. They are about to enter the market to look for a solution, a product, or a service.

3. Research and Evaluation

The consumer has started doing research to find a solution to the problem and is evaluating various products or services.

4. Preferences Established

The consumer has narrowed down their product or service and does the final evaluation before making a purchase.

5. Final Decision

The consumer has decided which product or service and is ready to make a purchase.

The type of product or service offered, the industry, the price, and a variety of other factors could influence how long it takes for consumers to move through the buying cycle. And the process is longer for a big-ticket item like a car as compared to a computer or a handphone. In addition to the above tangible factors, there are also emotional factors that can influence consumer-buying decisions. Even with all the information available, buying decisions are rarely 100% rational. As you develop marketing programs, you need to understand who your consumers are, what makes them tick, and what motivates them physically and emotionally.

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That's all for now, my friends. See you all in my next article.

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