What is a Funnel?

What is a Funnel?

A funnel, or conversion funnel, is a strategic system that allows us to understand the path that the consumer travels in order to complete an action for our brand. For example: to execute a conversion. 

This funnel allows us to clearly outline that path, and accompany the customer through each stage, so that we don’t lose them before our objective is met.

The objective is what we want to achieve — what we need the customer to do in order to reach our expected number of conversions or amount of traffic or interactions. 

Some funnels are short and simple, while others are long and complex.

Sometimes, people come into contact with brands out of curiosity, but are not yet ready to take an action, make a purchase, or become a part of the brand’s community. For this reason, it is essential to make an effort to accompany them, and guide them along through the experience as though it were a funnel — from ignorance and curiosity, to the completion of a purchase — and from there, develop them into a loyal recurring customer.

Why Is it Called a Funnel?

Often, users start their experience, but do not complete a purchase. Many stray from the path, and only some make it through to the destination. 

Therefore, it is crucial to identify all the stages that the customer must pass through to arrive at the conversion we are looking for, in order to keep them on the path toward making the sale.  

For example: a Facebook ad might be seen by 10,000 people, but only 1,000 will click to visit your website. Of those 1,000 that reach your website, 500 will leave immediately, 300 will check the page a bit and leave, 150 will try to fill out a form without success, and only 50 will give you their email (the objective).

At every stage of the consumer journey, potential customers are lost. The question is, what do you do with the people who fall by the wayside — how can you retarget them? And more importantly, what are you doing wrong at each stage that is causing users to abandon the journey?

A Revolutionized Funnel 

In the past, the funnel was linear. For example: 

  • Brand is discovered through ads. 
  • Traffic enters the site. 
  • Category navigation. 
  • Choice of a product
  • Execution of the purchase

But today’s digital shopping experience is much more complex. 

Nowadays, the discovery and consideration process is longer, because with increased access to social networks, customers are more likely to do research, check out other options, read opinions, and so on. Furthermore, the “post-purchase” or loyalty process also tends to be longer — customers like to share, tag, receive discounts by email, participate in sweepstakes, and so on.

What hasn’t changed with respect to the classic funnel, is that as a user advances through the process, their intention to buy increases, and at each stage there are fewer people.

This is called the customer life cycle.

Where to Start? 

In order to outline a good funnel, you must understand just how important and delicate the first contact with a new audience is. You must approach them without the abrasiveness of a direct sales offer. Offer them value without talking about conversion.

This is important, because the customer should get to know you a bit before you ask them to buy from you. So, this first stage of recognition is crucial. It is not advisable to try to sell to a customer who doesn’t know who you are. 

Trust must be established first, then recognition and familiarity. Only then will the customer proceed to fall in love with a brand. This is called inbound marketing, or attraction marketing.

Within each funnel, we can broadly distinguish three stages:

  • Top of the funnel (TOFU)
  • Middle of the funnel (MOFU)
  • Bottom of the funnel (BOFU)

TOFU — Discovery Stage

This stage is about attraction — getting users to start considering your brand as a solution to their problem or need. 

In this stage, the user needs or is looking for something, but is not yet familiar with your brand’s products or services. 

MOFU — Consideration Stage

In this second stage, the user becomes aware of your brand and recognizes it as a possible solution to their problem, but they still want to look into what competitors are offering, and compare. This stage is a pivotal moment in which the user can become a lead, and, therefore, a business opportunity.

BOFU — Conversion Stage

This is the narrowest part of the funnel, in which users who have already had multiple encounters with your brand, and become qualified leads, have reached the point of purchase. It is at this point that the sales team’s strategies come into play, and the lead is invited to convert.

By the time the user has reached the end of the marketing funnel, the sales team is presented with a much more mature business opportunity — in other words, the user is much more prepared to make a purchase.