What is the marketing funnel?

Sales and marketing can’t exist without one another, and that might explain why their functions are often misunderstood.

Let’s take the word ‘funnel’. It’s used in both sales and marketing for most businesses, but it means different things for both.

Today, we’re going to focus on the marketing funnel. Put simply, your business can’t operate without one if it wants to grow and become a recognisable brand within the market.

Thankfully, the concept behind marketing funnels is pretty straightforward and can be broken down into three distinct stages.

The word ‘funnel’ is used to help us visualise business processes. In this instance, it’s all about gaining a bird’s eye view of how leads turn into paying customers.

In marketing, most businesses cast a wide net across a number of channels (both traditional and digital such as search engine optimisation and ppc). Into that net, they catch leads - some hot, some lukewarm, others completely cold.

As those leads make their way through the funnel, they become hotter, to the point at which they’re ready to buy. It’s then the sales element of the business that converts them into paying customers.

Marketing funnels can be long and full of many touch points, while some are very short and result in super-fast conversions. The shape and configuration of your funnel will depend on your products, competition, customers and routes to market.

Stage 1: Awareness

This is the top of the funnel - the point at which leads enter your world.

People enter this part of the funnel as a result of the marketing campaigns you run. They might be pulled in by a banner advert or find the top of the funnel themselves via their own research.

Awareness can also be created via direct mail campaigns, social media posts and viral content. There’s no guarantee these people will actually buy from you, but they have at least taken the first, tentative steps towards making a purchase.

Stage 2: Evaluation

This happens quite a bit further down the funnel, after interest in your brand has grown and intent to buy a product or service you offer has been generated.

During the evaluation stage, the lead will make some calculated decisions about whether or not to buy your product or a competitor’s.

This is when the marketing and sales arms of your business need to work together in order to encourage the lead to take the plunge and buy from you.

Most leads still need convincing at this stage that you’re the one to go with.

Stage 3: Purchase

They made it! This is when the lead has decided to send their money your way and invest in your product or service.

Things can still go wrong here if they don’t receive the buying experience they hoped for, but providing the sales team delivers on the promises made by the marketing department, this is the stage of the funnel where you can finally celebrate a new win.

Wrapping up

We've only skimmed the surface of marketing funnels above. In reality, they contain more stages, dependent on the industry within which you operate.

However, a basic understanding of the three main stages is vital, because they exist in every marketing funnel and are key to your success.