Marketing Funnel Explained In Detail

What is the Marketing Funnel? The “funnel” model is one of the most central “tactics” in the marketing industry in recent years. From traditional network marketing, digital marketing, e-marketing to the newer growth marketing, they all use a similar marketing funnel to determine the marketing strategy to attract customers. This theory sounds abstract, but it is not difficult to understand, so I’ll break it down for you.

What is a “Marketing Funnel”?

A marketing funnel summarizes a customer’s spending patterns and divides behaviors into different stages. When you want to buy a product (from a drink, a book or a pair of shoes to a car or a house), you need to search and browse the market for brands, and then gradually narrow down your target until you pay for it. This “more to less” and “wider to narrower” selection process creates a funnel-like curved circle.

Marketing Funnel in Practice

The marketing funnel is only an abstract model. To apply it in practice, you must first understand your target customers and what they really need.

As mentioned above, all consumers have a “big to small”, “feel to decide” process when choosing products. It is important that you have a clear picture of what they are considering and what they are asking during this process, so that you can develop your online marketing or content marketing strategy accordingly. For Growth Hacking, where speed, experimentation and responsiveness are important, it’s important to keep referring to the Marketing Funnel to adjust your strategy and search for potential customers.

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The marketing funnel can be broadly divided into three stages of customer behavior.

Marketing Funnel

Top of the Funnel: Customers begin to notice your brand

The Top of the Funnel (TOFU) is the widest part of the funnel, representing the largest number of consumers in the market and the stage of brand discovery.

1. Awareness: Attracting customers with information

In the marketing process, this is the initial step to make customers aware of the existence of the brand through various content marketing or advertising. This is the process of “shooting the birds”, customers can notice you, but they may not have the exact interest.

2. Discovery: Making customers understand your business

Once the customer has noticed your brand, you must further explain all the details to the customer, including the concept, price and service process, so that the customer can fully understand what you offer and what your business is about.

Middle of the Funnel: Customers consider whether they want to spend or not

Middle of the Funnel (MOFU) is when customers finish learning about your brand and start thinking about whether they need your products and services. At this point, customers may review their own needs or compare your competitors. What you need to do is to develop a strategy at the following two levels so that anyone can become your “potential customer”.

3. Evaluation: Customers assess the quality of your brand

After getting to know your brand and your products, customers will think about whether they really need your products. Any consumer will not just consider one product, but will evaluate, measure and compare more similar brands. This is why some people call this process “Consideration”.

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You need to understand your customer’s concerns at the moment, and the various types of marketing methods to address your customer’s concerns.

4. Intent: Customers really feel interested in your brand

If you have successfully addressed the customer’s concerns in the previous stage, there is a good chance that the customer will actually consider your product. This is the most critical step, you must convince the customer that they will get the best return for their money. You can offer your customers more guarantees or special offers to further strengthen their desire to spend.

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Bottom of the Funnel Bottle of the Funnel: How to get customers to come back

The Bottom of the Funnel (BOFU) is the final stage of the marketing process, when the customer actually pays and becomes a “prospect”. However, closing the account does not mean the end, how to make customers come back and grow the customer base is also a very important stage of marketing.

5. Conversion: Customers’ formal consumption

In funnel theory, conversion refers to the process of getting the customer to actually pay, from thinking about it to doing it. At this stage, you need to make sure that the customer gets the goods and services they need, so that they feel they are getting their money’s worth, or even “more than their money’s worth”.

6. Loyalty: Building long-term customer relationships

Consumer behavior is not a one-time thing, but a long-term customer relationship is the right marketing strategy. The last step of the Marketing Funnel is to focus on customer “Loyalty”. Marketers need to strengthen the long-term trust of customers through after-sales service, further content or marketing techniques.

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There are many versions of the Marketing Funnel, but the one I present is the most common and most used, especially in today’s competitive world of online marketing and growth marketing.

The marketing funnel is only an overview of consumer behavior patterns and the marketing techniques that can be used to address them. How do you enhance consumer “intent”? Depending on the content of the product and the nature of the business, we must develop appropriate marketing strategies and allocate marketing resources. This is the only way to effectively target consumers and maximize marketing returns.

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