When starting up a new business, it is almost impossible to easily draw in targeted customers on the spot. But what makes a business so successful? How are so many local businesses able to expand their business in short periods of time? Funnels are a great place to start.
You may be wondering what are funnels and what makes them so important. A marketing funnel, also known as a sales funnel, is the psychological state a customer follows, from growing interest in the product to setting a purchase. It describes the progressive relationship between the customer and the company of interest. Each customer goes through a similar phase that would have products appeal to them based on targeted interest. Although there are variations in the types of marketing funnels, they all share similarities. Understanding marketing funnels reveal steps to improve customer satisfaction, ultimately growing the company.
The marketing funnel was created by Elias St. Elmo Lewis in 1898 as the “first formal theory of marketing”. It has been developed and improved upon over the years to establish basic models for planned advertisement and growing businesses. The funnel slowly filters through customers to allow companies to understand their focus, objectives, and methods to appeal to targeted customers.
Marketing Funnel Diagram version 1 extracted from laptrinhx.com.
The initial basic model involves four phases: awareness, interest, desire, and action. The first stage of the marketing funnel is awareness. Consumers need to be aware of the problems they are facing and what product they are searching for. The consumer would explore companies and products that meet their interest in the discovery phase. It is important to address valuable information about the product whenever the opportunity is given. The consumer would then focus on considering the product by comparing different aspects with competing companies to find one that best suits their disposition. Companies should build their reputation by associating with reputable sources to build consumer trust. The consumer would begin to evaluate the brand and the quality of products in the desired phase before finally acting to purchase the product if it meets all their standards.
Marketing Funnel version 2 extracted from sproutsocial.com.
Additional stages, “loyalty” and “advocacy”, are requirements for the marketing funnel because having loyal consumers is what allows businesses to keep up and make a steady profit off of multiple products. If not, it is possible for businesses to lose more than anticipated if all customers are lost. It is vital for companies to not only appeal to newer consumers but also satisfy the needs of present consumers supporting the product. These same customers may benefit the company by spreading their interests to other parties. To do this, it is important to interest customers with benefits such as regular discounts and interactions to keep them interested.
Marketing funnels can be used universally on any product or form of service, whether it may be digital or in person. It teaches the vital steps to appeal to targets of interest to make any business successful. Even for struggling companies, using marketing funnels is a great way to pick up marketing strategies or aspects that are lacking.
Types of Funnels to Consider
There are many types of funnels to consider: social media marketing funnels, lead magnet funnels, video sales funnels, webinar funnels, list building funnels, etc.
Social Media Funnels
The most common form of a funnel is the social media funnel. Social media applications are not just used as a form of communication, but also to serve entertainment to individuals, a great form of the marketing funnel. Social media is very effective and is capable of exposure to countless individuals within small periods of time. Potential consumers would get exposure to similar products repetitively to gain their interest in the company, brand, and products.
An effective social media funnel to get the job done would be Instagram. Instagram is a platform that many users constantly interact with on a daily basis. Instagram is used for communication and allows individuals to share or watch others’ experiences through a uniform platform. It is designed to allow individuals to massively spread their posts to large groups of people in just one click. As long as there is at least one consumer invested in the product, there will be countless individuals following. This platform allows fast exposure to any product anyone desires. This is why many companies collaborate with influential individuals to spread the name of their company and their product. Not only have the individuals gathered the trust of their followers but guarantee that the product will be exposed countless times.
Considering social media platforms and using the right application is very important, especially for smaller businesses. For example, a recent security breach in Twitter may have a growing impact on companies primarily focusing on Twitter to influence their brand. More than 5.2 million accounts have been exposed, with the identity, email, and phone number revealed upon association with the platform. This will cause problems as Twitter is a viable funnel for companies focusing their efforts on spreading the brand through the platform. With the reliability of the platform causing doubt, many users will start to reconsider their association with the company. It would not be a surprise if many individuals continuously abandon or remove their accounts in an effort to ensure their own safety. There will be less of an anticipated audience and the ability to spread the word to larger audiences.
Lead Magnet Funnels
A lead magnet is commonly used on different websites that you may have previously fallen for without realizing. Lead magnet funnels is a method that requires users to provide a form of contact, such as email addresses, to access the content. In return, the company would be given a form of communication, allowing the company to regularly share deals and commercialize products to potentially gather consumer interest. Lead magnets come in different forms: eBooks, templates, webinars, guides, reports, etc.
Video Marketing Funnels
A video marketing funnel attracts and educates potential consumers through video content. Video content focuses on allowing companies to relate to the targeted audiences and share their goals to the public that can be shared on any video streaming platform. Videos are helpful to affect the emotional states of customers to motivate them into buying the product. Rather than focusing on the content or whether the product is necessary, videos emotionally motivate the user into thinking the product should be obtained.
Webinar Funnels
Webinar funnels are a great way to attract consumers already interested in similar products or subjects targeted by the business. Firstly, consumers interested in a specific webinar would register and share their contact information to access the webinar. Once the user signs up, the webinar should appeal to the participants to increase engagement with both the seminar and the associated brand introduced with it. If participants remain interested, they would be more willing to trust the company and find interest in the product being introduced. Businesses would be able to collect data from the user to create a trusting relationship between the consumer and the company, becoming loyal to the specific company.
List-Building Funnels
List building funnels create sign-up pages which would allow access to emails promoting deals and products for the consumer on the list. This is typically used to maintain consumer engagement from their interest when they purchase their first product(s) from the company. Businesses would be able to contact their customers regularly to match any follow-ups on products of their interest. This will keep a regular producer-consumer relationship.
It is not a bad choice to put multiple funnels in effect to allow maximum consumer engagement with the company. Although it is difficult to build a loyal customer base without reliability and credibility from the start, it is important to always attract consumer focus and place focus on the purpose or intentions of the company. Always finding ways to connect with the customer, not just by introducing the product, would be a great way to do so.
Sources
https://sproutsocial.com/glossary/marketing-funnel/
https://firstpagesage.com/seo-blog/digital-marketing-funnel-stages-fc/
https://www.getresponse.com/blog/marketing-funnel
https://techcrunch.com/2022/08/05/twitter-zero-day-vulnerability-millions/
https://inthinkagency.com/how-to-create-a-killer-lead-magnet-funnel-and-level-up-your-lead-gen/
https://www.wyzowl.com/video-marketing-funnel/
