Marketing Funnel
Definition
A model showing how potential customers move from first hearing about you to making a purchase. Helps you understand where people drop off.
What is a Marketing Funnel?
A marketing funnel is a way of visualising how people move from not knowing your business exists to becoming paying customers. It's called a funnel because many people enter at the top (awareness), but fewer make it through to the bottom (purchase).
The funnel helps you identify where you're losing potential customers and what you need to fix.
Marketing Funnel Stages
Top of Funnel (TOFU) - Awareness
People discover your business exists:
- Social media content
- Blog posts and SEO
- Advertising
- Word of mouth
Middle of Funnel (MOFU) - Consideration
People research and compare options:
- Reading reviews
- Downloading guides
- Signing up for emails
- Comparing prices
Bottom of Funnel (BOFU) - Decision
People are ready to buy:
- Requesting quotes
- Booking consultations
- Adding to cart
- Making purchases
Why the Funnel Matters
Understanding your funnel reveals:
- Leaky stages: Where are people dropping off?
- Content gaps: What information do people need at each stage?
- Conversion blockers: What's stopping people from buying?
If you're getting lots of traffic but few enquiries, you have a middle-funnel problem. If you're getting enquiries but few sales, it's a bottom-funnel issue.
Measuring Your Funnel
Track the conversion rate between each stage:
- Visitors to leads: 2-5% is typical
- Leads to opportunities: 10-20%
- Opportunities to customers: 20-30%
These numbers vary by industry, but tracking them shows where to focus your efforts.