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What is a funnel: how it works and what benefits it brings

Index

What is a funnel? The funnel is one of the essential elements in a marketing process, as it helps us define and delineate the path our potential customers might follow before making a purchase. But specifically, how does it work?

What is a funnel?

The funnel is a diagram whose purpose is to classify in the simplest and most practical way the main stages of the buying journey that a potential customer goes through before arriving to purchase our product and/or service.

The funnel shape of the funnel represents the fact that, at least at an early stage, the number of possible leads is very large. However, as we then move forward in the process, the audience that actually gets to know the brand and its products and/or services is greatly reduced to a smaller number of users who are more likely to convert and who could become loyal customers. Consequently, in order to be successful, it becomes critical to perceive the needs of our potential customers and to be able to best position ourselves in that slice of the market. Nowadays, this path is quite complex, as the possible touchpoints through which a user can come into contact with our brand have multiplied, thanks in part to the advent of the Internet.

There is no single, universally accepted version of the marketing funnel, but we can find several variations of it, featuring 3 to 5 or more stages. Today, we will consider the simplest and most universally known version, which contemplates the following steps: brand awarness, consideration and loyalty.

What is a funnel: why is it important in marketing?

After wondering what a funnel is, it must be understood that, in the era of the digital, it is no longer a linear path, and, by necessity, we have to take into account the fact that potential customers can come and go at any point in the process, due to the many, many touch points they can have with our brand. The only second stage of the process, the Consideration stage, can bring extensive consumer research and comparison activity and is no longer limited to comparing products and/or services found in physical stores. Many brands have adapted to this new way of shopping and embraced integrated strategies that also involve social media and Google Ads.

It becomes, therefore, crucial to be able to devise a comprehensive and reasoned strategy that avoids unnecessary dispersion of budget. For this reason, it is recommended to rely on an agency capable of keeping an eye on the different touchpoints and, based on the analysis of KPIs and their results, figure out where to allocate more and/or less economic capital.

The stages of the funnel: Brand Awarness

The Brand Awarness phase is the phase in which efforts are made to increase awareness of the brand in the marketplace, thus knowledge of its name, messages, tone and style, values, and culture. This phase begins with consumer research and serves to attract customers to a brand, helping them to recognize it among many competitors and remember it.

If years ago the main touchpoints for Brand Awarness were represented by offline media, today the use of online communication is indispensable. Being that the goal of this phase is to keep the brand in the minds of potential consumers, the statistics provided to us by tools such as social, Google Ads, Analytics, etc. become very useful.

In addition, compared to the past, the web brings us much more data to analyze for our marketing strategies, which, while significantly broader, are still very accurate: for example, the analysis of these statistics has made it clear that communication that occupies the entire display of our smartphones (YouTube, Instagram, TikTok) is among the most popular for promoting certain types of products and/or services.

In this sense, an agency like Spada Media Group can advise you on the best strategy to adopt while also assessing the economic potential of your company.

The stages of the funnel: Consideration

The Consideration phase is the phase in which we try to increase the likelihood that consumers will consider our brand and then go on to purchase its products and/or services. The messages in this particular phase need to highlight even more of an interest or need of the users, making them want to increase their knowledge of the brand and consider it to find out what differentiates it from the competition.

At this stage, therefore, it becomes crucial to study our target audience, understand their needs and position the brand through tools such as building a good website, SEO optimization and sponsorship through Google Ads.

The stages of the funnel: Loyalty

Once the user has decided to purchase our product and/or service, we need to make sure we build loyalty. This can be done as early as the purchase stage, offering a simple, straightforward experience and, most importantly, quality products. Positive interactions during and after the purchase phase can help a buyer become a loyal customer. Without a plan to promote customer loyalty, it may happen that a user will then go to our competitors.

It becomes necessary, therefore, to continue to engage customers who have invested in the brand’s products or services through e-mail promotional campaigns and social media communication. Here, then, come into play all the remarketing techniques that allow us to retrieve within the target audience users who have visited our website without taking any action. To do this, we can deliver to them via e-mail or via ads an advertising message that entices them to return to our site and perhaps make the order/purchase.

Why rely on a qualified agency?

Since the funnel, as we have seen, is a complex process, it is good to rely on professionals in the field to try to manage it in the best possible way and promote a comprehensive and integrated strategy through the different channels available to the company.

For this reason, a cross-media agency such as Spada Media Group might be right for your company, as it consists of professionals from different fields and industries. Relying on a well-qualified agency will enable you to obtain a ROAS greater, as our specialists will be able to understand and measure the profit generated by advertising expenditures and figure out which channels, tools and forms of investment are most effective for your brand, avoiding wasting budgets and guiding future marketing choices accordingly.

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