What’s a Marketing Funnel, what are the different parts, and how do you measure if it is working?
The sales or marketing funnel is a set of processes that a prospect/customer takes, guided by the marketer, to become a customer/repeat customer.
At a high-level, the acronym “AIDA” represents the different steps to the funnel:
A.I.D.A.
Awareness: Make the prospective client “aware” of the product
Interest: As the prospect moves down the funnel, catch the “interest” on how your offering could solve their problems and fulfill their needs
Desire: At this part of the funnel, the client has decided this product will meet their needs.
Action: At the end of the funnel is where the client decides to make the purchase or not.
To measure the funnel is working you could use the following metrics to measure this:
Customer lifetime value
Cost per acquisition/lead
Close rate per channel (referrals, website, SM, etc.)
Progression and the conversion rate (As the customer/client moves through the funnel this would be the result of the conversion ratio).