Funnel

A funnel is a concept from marketing. It describes the process by which companies guide potential customers or leads through various stages or phases with the aim of converting them into paying customers. The term "funnel" figuratively illustrates how the number of people or leads decreases at each point of the process, similar to the narrowing of a funnel, with a large number of prospects at the beginning and only a smaller proportion of them actually making a purchase at the end.

The funnel & the AIDA model

The funnel can be divided into different phases, commonly referred to as Awareness, Interest, Desire and Action, known as the AIDA model. Each phase aims to bring the potential customer closer to the purchase decision by using specific strategies and communication measures.

Awareness: This phase of the funnel is about attracting attention and making potential customers aware of the product or service.

Interest: Once the potential customer has learned about the offer, the aim is to arouse their interest by providing further information that illustrates the benefits and value of the offer.

Desire: In the desire phase of the funnel, an attempt is made to convert interest into a concrete desire to buy, often through emotional appeals or the presentation of solutions to problems.

Action: Finally, the action phase of the funnel aims to persuade the potential customer to take a specific action, be it buying the product, signing up for a service or another desired action.

Alternative classification of the funnel phases

Alternatively, a sales funnel can be divided into three key phases: Top of the Funnel (ToFu), Middle of the Funnel (MoFu), and Bottom of the Funnel (BoFu). In the ToFu phase, the focus is on generating attention and information for potential customers. In the middle phase, MoFu, the company builds credibility and presents its solutions (products and services). Finally, the BoFu stage of the funnel aims to solidify the prospect's decision to buy and incentivize action in order to successfully complete the sales process.

What types of funnels are there?

Depending on the focus set, the path from attention to the desired action can be mapped in different funnels.

Marketing funnel

The marketing funnel looks at the entire process from a marketing perspective, starting with generating awareness of a product or brand and ending with the customer's decision to buy or the generation of a lead. The main goal of this funnel is to attract as many people as possible, arouse their interest and then gradually convince them until they finally convert to customers.

The conversion funnel

Known as the "conversion funnel" or "sales funnel", the focus here is specifically on the final stage of the process where a potential customer is converted into an actual buyer. The optimization of the "conversion rate" is of central importance here, i.e. the proportion of visitors who take a certain desired action (for example, complete a purchase, submit a form or sign up for a newsletter).

The sales funnel

The sales funnel, also known as the sales funnel, which is closely linked to the conversion funnel, focuses on the entire sales process, from the first interaction with the customer to the successful completion of the sale. This funnel is not only about converting potential customers into buyers, but also about developing strategies for customer care and retention after the purchase.

The click funnel

The click funnel, a special form of funnel in digital marketing, focuses on user interactions in the form of clicks. The primary goal is to get users to click on certain elements of a website or landing page in order to lead them deeper into the funnel and ultimately have them perform a certain action (such as a purchase).

Difference between sales funnel and customer journey

The sales funnel and the customer journey are both concepts that describe a customer's path to purchase, but differ fundamentally in their perspective and focus. While the sales funnel focuses on the optimization of the sales process and the conversion of leads to customers from a company perspective, the customer journey offers a more comprehensive understanding of the entire customer experience with the aim of improving customer satisfaction and loyalty.

Why is the target group crucial for the funnel?

The orientation of the funnel depends largely on the respective target group, as needs, preferences and behaviors differ from one another. This diversity requires adapted strategies and tactics to effectively guide the target groups through the funnel. Differences in interests, purchasing behavior, preferred communication channels and personal preferences have a significant impact on funnel design. For example, younger users are more likely to respond to social media, while older users may be better reached via email marketing. Buying behavior and preferred communication channels also vary, which underscores the need for target group-specific funnel customization to ensure effective guidance and conversion.

Conclusion

The funnel helps companies structure and optimize their marketing and sales strategies by providing insights into how effectively they are converting potential customers into actual buyers. By analyzing performance at different points in the funnel, companies can identify areas that need to be improved in order to increase conversion rates. Depending on the objective, a distinction can be made between different types of funnels. When designing a marketing funnel, the respective target groups should be considered in order to focus on the right strategy and corresponding implementation.