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Draft:Marketing Funnel

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  • Comment: In addition to my decline reasons, I have the following concerns:
    None of the sources, bar one, even mention the term 'Full Funnel Marketing'. (Granted, my copy of Kotler is an old edition, and I don't have access to a recent one, so that could be another, although personally I rather doubt it.) This strongly suggests that the term is not in widespread use, let alone being widely discussed rather than merely used (as is required for neologism notability, per WP:NEO).
    The one source that does use the term is that of the draft author, ref #6. Even assuming good faith, this does very much look like an attempt to use Wikipedia to promulgate the author's ideas.
    Furthermore, two sections ('Stages of full funnel marketing' and 'Strategies and tactics') are supported only by the aforementioned ref #6. Another two sections ('Types of full funnel marketing' and 'Conclusion') are unsupported by any source, suggesting that they are the author's own content, and likely constitute original research or synthesis. This further underlines my previous point.
    While some sources are undeniably solid (Kotler, HBR), many are primary and of unknown provenance (eg. HubSpot, Hotjar, Medium). For this reason, even content which appears to be supported by independent sources, may not be supported by sources that meet our quality standards as outlined in the WP:GNG guideline.
    -- DoubleGrazing (talk) 08:39, 13 July 2024 (UTC)
  • Comment: I have some concerns about this draft, which I will outline in a separate comment, but I am declining this because I believe it duplicates the topic of an existing article. The start of the lead states that 'full funnel marketing' is synonymous with 'marketing funnel', and that term currently redirects to purchase funnel; ergo, this term should do likewise, and any salient new content in this draft could be merged to the purchase funnel article. DoubleGrazing (talk) 08:11, 13 July 2024 (UTC)

The marketing funnel is a marketing model that depicts the customer journey from initial awareness of a brand or product to the final purchase. It is used by businesses to understand consumer behavior and adapt marketing strategies at each stage of the customer's decision-making process. By segmenting the customer journey into distinct phases (often categorized as awareness, consideration, and conversion), businesses can implement targeted tactics to guide potential customers through the funnel and increase the efficiency of their marketing efforts[1][2][failed verification]

History and development

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The origins of funnel marketing can be traced back to the late 19th century with the AIDA model (Awareness, Interest, Desire, Action) developed by Elias St. Elmo Lewis.[3] This model provided a fundamental framework for understanding consumer progression through various stages before making a purchase. Over time, the model has evolved to incorporate additional stages and emphasize long-term customer relationships.[4] The emergence of digital technologies has further transformed the funnel by integrating online channels and enabling data-driven optimization. Notable figures who contributed to this evolution include E.K. Strong, who focused on the psychology of selling, and William H. Townsend, who integrated the AIDA model with the funnel concept in 1924.[5]

Definition and purpose

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The marketing funnel visually represents the stages a potential customer progresses through before making a purchase. The primary goal is to guide prospects efficiently from awareness to becoming loyal customers. By understanding customer behavior at each stage, marketers can create targeted strategies to meet customer needs and maximize conversion rates.[4]

Stages of full funnel marketing

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Funnel marketing is a strategic approach that encompasses the entire customer journey, from initial awareness to post-sales activities. This approach aims to convert prospects into loyal customers, including key stages: Top of Funnel (ToFu), Middle of Funnel (MoFu), and Bottom of Funnel (BoFu), along with post-sales phases like client retention and loyalty building. The methodology integrates the customer lifecycle into a marketing plan that spans from initial awareness to customer advocacy.

The marketing funnel differs from the sales or purchase funnel. While funnel marketing focuses on guiding potential customers through the awareness, consideration, and decision-making stages from a marketing perspective, employing strategies such as content creation, engagement, and nurturing, sales or purchase funnels concentrate on transactional processes, emphasizing lead qualification, sales presentations, and deal closures.

Typically, marketing funnel strategies include the following five macro-stages:

  • Awareness Phase (Exploration/Lead Generation): Potential customers identify their needs or issues and begin exploring solutions. The marketing objective is to generate leads by attracting individuals and obtaining their contact information to initiate a relationship.
  • Consideration Phase (Lead Nurturing): Prospects who have shown initial interest evaluate specific products or services, comparing features and benefits. Marketing efforts shift to nurturing these leads by providing targeted information that deepens the relationship and helps prospects make informed decisions.
  • Purchase Phase (Decision Making/Conversion): At this stage, potential customers are prepared to make a purchase decision. Marketing strategies focus on facilitating this conversion through clear calls-to-action, streamlined purchasing processes, and promotions such as limited-time offers.
  • Loyalty Phase (Retention/Fidelization): Post-purchase, the focus shifts to retaining customers and building loyalty. This is achieved through ongoing engagement via personalized communication, loyalty programs, and excellent customer service.
  • Recommendation Phase (Advocacy): Satisfied customers are encouraged to advocate for the product or service. The marketing goal is to reinforce relationships with these advocates, motivating them to promote the brand further, thereby fostering a cycle of loyalty and new lead generation.

Businesses may adapt their funnel strategies to suit specific markets and customer bases, ensuring each phase addresses the needs and behaviors of potential customers.

Subsets within the marketing funnel

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Funnel marketing encompasses several strategic approaches designed to engage customers at different stages of the buying and fidelization process. Each subset within the marketing funnel has specific objectives and targets particular interactions with customers, from initial contact to post-purchase follow-up. Common full funnel marketing subsets include:

  • Sales Funnel or Purchase Funnel: The sales or purchase funnel (sales from the seller's perspective and purchase from the buyer's perspective) guides potential customers through stages of awareness, interest, desire, and action, culminating in a purchase decision. It is a subset of full-funnel marketing, centered specifically on the conversion process.
  • Lead Generation Funnel: Aimed at capturing the contact information of potential customers and converting them into qualified leads, this funnel often employs incentives like free e-books or webinars. Follow-up typically involves targeted communication aimed at building relationships and advancing prospects through the funnel.
  • Product Launch Funnel: Created to build excitement and anticipation for a new product or service, this funnel uses pre-launch marketing tactics such as videos, webinars, and email campaigns to engage potential customers before the product's official release.
  • Webinar Funnel: This type uses webinars, either live or recorded, to provide value and educate potential customers about a product or service. It often includes promotional efforts to drive attendance and may incorporate calls to action during or after the webinar.
  • Tripwire Funnel: This strategy begins with a low-cost offer to attract initial purchases, followed by additional selling strategies such as upsells or downsells to increase the overall value obtained from each customer.
  • Membership Funnel: Focuses on generating recurring revenue by offering exclusive content or services to subscribers. This funnel uses tools like landing pages, email campaigns, and membership portals to engage and retain members.
  • Survey Funnel: This approach collects information about potential customers' preferences and pain points through surveys, using the data gathered to customize marketing strategies and offers that meet their specific needs.

These funnel types are part of a marketing strategy, each tailored to facilitate different goals throughout the customer lifecycle. While terms like "full funnel marketing," "sales funnel," and "purchase funnel" are sometimes used interchangeably, they each serve distinct purposes within a broader marketing framework.

Measuring and optimizing the funnel

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Businesses measure and optimize full funnel marketing processes to refine their customer acquisition strategies. Key performance indicators (KPIs) tracked at each stage provide insights into customer behavior and marketing effectiveness. Tools such as Google Analytics and CRM systems are commonly used for monitoring. Techniques like A/B testing and funnel analysis help identify areas for improvement.[6] For example, testing different landing page designs reveals which version achieves higher conversion rates, while funnel analysis identifies stages where potential customers drop off. Combining data-driven insights with optimization techniques allows businesses to refine marketing efforts and enhance conversions continually.[7]

Challenges and common issues

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Full funnel marketing faces challenges in guiding potential customers toward conversion. One notable challenge is understanding the complete customer journey. Businesses often struggle to map various touchpoints and interactions from initial awareness to final conversion, which can lead to misaligned marketing efforts and missed opportunities. According to McKinsey & Company, companies proficient in mapping the customer journey can enhance satisfaction and drive revenue growth.[8]

Executing complex full funnel marketing strategies poses another challenge. Multiple stages require tailored content and specific calls to action, complicating the maintenance of a seamless customer experience across touchpoints. This complexity often results in customer drop-offs, impacting conversion rates. According to the Harvard Business Review, outcomes can be better by streamlining the customer journey and reducing friction points.[9]

Accurately measuring the success of full funnel marketing and attributing results to specific campaigns or stages remains an issue. Accurate data analysis is crucial, yet many businesses lack the necessary tools or expertise. Investing in advanced analytics platforms and employing attribution models can mitigate this challenge.[10]

Cost is also a concern, particularly for small businesses with limited budgets. Establishing and maintaining effective full funnel marketing requires investments in tools, platforms, and advertising campaigns. Prioritizing high-impact activities, leveraging free or cost-effective resources, and focusing on organic growth strategies can help manage expenses.[11]

Adapting full funnel marketing strategies to changes in consumer behavior and market trends is essential. Businesses must remain flexible and responsive to shifts in preferences, technologies, and competition. Regular review and optimization of the funnel are crucial for sustaining effectiveness.[11]

Examples of full funnel marketing

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Full funnel marketing can be demonstrated through various real-world applications by companies aiming to guide customers.

Content streaming services provide a clear example of this marketing strategy. These companies typically use platforms that are easy to navigate and feature regularly updated content to attract initial user interest, often through free trial offers. Once users are engaged, the services encourage exploration of various subscription models and collect contact information for ongoing marketing efforts, with the goal of converting free trials into paid subscriptions.[12]

Another sector that employs full funnel marketing is marketing and sales software. Companies in this industry often offer resources such as e-books, webinars, and templates to obtain contact details from potential leads. These materials are designed to educate potential customers, thereby nurturing leads and establishing the company as a credible authority in its field. This approach aims to increase the likelihood of converting leads into paying customers.[13]

In the non-digital realm, athletic apparel companies utilize full funnel marketing by launching comprehensive marketing campaigns that might include television commercials, social media, and event sponsorships. These campaigns typically use engaging slogans and collaborations with well-known athletes and influencers to inspire potential customers. The narrative often focuses on personal achievement and overcoming challenges, which aligns with the promotion of the products as essential tools for personal fitness goals. To drive purchases, these companies might introduce limited-edition products or exclusive collaborations, aiming to move customers through the marketing funnel from awareness to action.[14]

Criticisms and controversies

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The marketing funnel model has faced increasing criticism for its traditional approach. Critics argue this model oversimplifies the consumer journey by assuming a linear progression from awareness to action. This linear approach is seen as inadequate in sectors like Software as a Service (SaaS), where customer decision-making processes are often complex and non-linear. Analyses in sectors like SaaS, particularly a critique published on Medium, suggest the traditional model struggles to efficiently balance customer acquisition costs with the benefits of retention.[15]

The criticism extends to the model's relevance in the digital age, where consumer behavior has evolved significantly. The rise of digital and social media platforms has altered how consumers interact with brands, often entering the purchasing process at various stages and sometimes moving non-linearly or even reversing their engagement paths. Furthermore, the traditional funnel model has been criticized for its limited focus on post-sale customer experience, which can hinder the development of brand loyalty and advocacy.[16]

Alternative Models and Perspectives:

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In response to these criticisms, several alternative models have been proposed to better align with contemporary consumer behavior:

  1. Customer Decision Journey (CDJ): This model reflects the non-linear and iterative nature of consumer interactions. It recognizes that customers engage with brands through multiple touchpoints over time, influencing their purchasing decisions through a series of interactions and feedback loops.[17]
  2. Flywheel Model: This approach emphasizes the momentum created by satisfied customers who become advocates for the brand. It highlights the importance of continuous customer satisfaction as a means to drive business growth, focusing on delivering consistent, exceptional customer experiences.[18]
  3. Bow Tie Funnel: An adaptation of the traditional funnel, the Bow Tie Funnel acknowledges the dynamic and non-linear interactions of customers with brands. It integrates multiple touchpoints and feedback mechanisms, allowing businesses to adjust their strategies based on real-time customer feedback, thereby enhancing customer engagement and loyalty.[19]
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Full funnel marketing is expected to evolve with advancements in technology, artificial intelligence (AI) and machine learning, which are poised to enhance the personalization and efficiency of marketing strategies. Additionally, the rise of voice technology indicates a shift towards more voice-activated web searches, which could influence the dynamics of content marketing and storytelling towards greater authenticity and personalization.[20]

References

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  1. ^ Kotler, Philip; Keller, Kevin Lane (2016). Marketing Management (15th ed.). Pearson Education, Inc. pp. 163–173. ISBN 978-0-13-385646-0.
  2. ^ Sapian, Alina; Vyshnevska, Maryna. "The Marketing Funnel As An Effective Way Of The Business Strategy" (PDF).
  3. ^ "How to Use AIDA Model in Business". Small Business. Retrieved 2024-06-24.
  4. ^ a b "What Is the Marketing Funnel, and How Does It Work?". CareerFoundry. 5 July 2022. Retrieved 2024-06-24.
  5. ^ "Every Stage of the Marketing Funnel Explained". Ortto. Retrieved 2024-06-24.
  6. ^ "A Complete Guide to Funnels". Hotjar. Retrieved 2024-06-24.
  7. ^ "6 Essential Marketing Funnel Tools + Software". Hotjar. Retrieved 2024-06-24.
  8. ^ "The Three Cs of Customer Satisfaction: Consistency, Consistency, Consistency". McKinsey & Company. Retrieved 2024-06-24.
  9. ^ Rawson, Alex; Duncan, Ewan; Jones, Conor (2013-09-01). "The Truth About Customer Experience". Harvard Business Review. ISSN 0017-8012. Retrieved 2024-06-24.
  10. ^ "Marketing Measurement: A Complete Guide and Best Practices". Gartner. Retrieved 2024-06-24.
  11. ^ a b "Common Challenges With Marketing Funnels". FasterCapital. Retrieved 2024-06-24.
  12. ^ "Unlocking Success: Real-World Marketing Funnel Examples & Strategies". Metranomic. 2019-08-17. Retrieved 2024-06-24.
  13. ^ "Case Studies of Successful Marketing Sales Funnel Optimization Campaigns". Medium. 2023-11-06. Retrieved 2024-06-24.
  14. ^ "Nike Marketing Strategy: Unveiling Consumer Marketing Success Tactics". BrandCredential. Retrieved 2024-06-27.
  15. ^ "Why A Traditional Marketing Funnel Is Not Enough For A Successful SaaS?". Medium. 2021-11-22. Retrieved 2024-06-27.
  16. ^ Bonchek, Mark; France, Cara (2014-05-07). "Marketing Can No Longer Rely on the Funnel". Harvard Business Review. ISSN 0017-8012. Retrieved 2024-06-27.
  17. ^ "The Consumer Decision Journey". McKinsey. Retrieved 2024-06-27.
  18. ^ "The Flywheel Model". HubSpot. Retrieved 2024-06-27.
  19. ^ "The Bowtie Funnel: Understanding the Customer Journey". Rev Partners. Retrieved 2024-06-27.
  20. ^ "Evolution of the Digital Marketing Funnel: Past and Present [+ Infographic]". Campaign Monitor. 2019-03-26. Retrieved 2024-06-27.
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See also

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