Marketing Funnel; Strategy Implementation Guide
In our previous insight, we explained how to formulate marketing strategies and the factors to consider while formulating one. Here, we will discuss how to implement those strategies. Communicating our brand and driving sales is the goal of every business, and strategies are made for that. The marketing funnel comes into the picture here; it helps marketers design communication.
A marketing funnel is a framework that shows customers’ journeys throughout different stages of their purchase. It has evolved from its initial stage with respect to changes in consumer behavior. A marketing funnel is made with consideration of customer touch points. A marketer should plan and implement campaigns, activities, strategies, and tactics that align with the company’s overall strategies at each stage of the marketing funnel.
Every company has different marketing funnel types according to their industry and requirements. The marketing funnel doesn’t need to only have some specific stages. Some companies may have 4 stage marketing funnel and some may have 6 stage marketing funnel and so on. A typical marketing funnel looks like the following:
1. Awareness
2. Consideration
3. Conversion
4. Loyalty
Now let’s look into each of these stages carefully.
Awareness
This is the stage where a potential customer is aware of the product. Brands can implement several brand awareness programs like influencer marketing. Once a need or problem arises, a potential customer may first search for products online, if the company page is well-optimized it will show up at the top of the search which will give credibility to the product. Once a customer notices the product now he is aware of the brand or product. Likewise, a customer may be aware of the product through friends, social media, etc. Companies can build brand awareness strategies through search engine optimization, search engine marketing, social media marketing and advertising, etc.
Consideration
This is the stage where the customer is considering buying the product or service, not necessarily your brand. Customers need more information about the product or service and its quality. This is where customers cross-check the information they have and also they will start to connect with other customers who previously purchased. Companies can publish testimonials, and case studies and conduct webinars for the customers at this stage. Companies can also run remarketing ads through social media, email, and websites to the customers who have already visited companies page or enquired about the product or services. A unique selling proposition is very important here because that’s what customers consider you over your competitors.
Conversion
This is the stage where the customer buys the product. To make customers take the desired action it is important to optimize the checkout process, make the process simpler, add better photos, and enhance your website speed. Also, companies should offer trial or money-back guarantees so that the customer feels at ease to try the brand’s product or service.
Loyalty
This is the stage where the customer is a repeated customer and advocates the brand. There are several strategies and tactics to increase loyalty. Letting customers know about new products, and encouraging customers’ social shares and reviews. Also introducing reward and membership programs and birthday and anniversary offers will help the brands to attain loyal customers. Proper customer relationship management (CRM) is required.
The above-mentioned funnel is a conventional approach to marketing funnel though digital examples are also provided. In the fast-paced life, customers get exposed to too many good-to-be-true promotions both online and offline. With the attention span of humans rapidly decreasing, Customers are now turning to their peers for trustworthy advice. Companies should stand out from other brands and meaningfully connect with customers. As customers now turn to their peers for credible advice, companies should leverage this advocacy. To be able to do so companies should delight their customers and let the customers know that they matter. Philip Kotler in his Marketing 4.0 proposed a new approach to Marketing Funnel also known as Customer Path. The 5A’s of the new approach is:
1. Aware
2. Appeal
3. Ask
4. Act
5. Advocate
Aware
A customer can be aware of the brand as he is exposed to multiple brand communication online or offline. Customers can also be aware of a brand from their peers also known as word-of-mouth. Once a need or want arises, the customer may recall the brand and its product or service. Although customers are exposed to multiple brand promotions, they may not recall every promotion they are exposed to.
Appeal
As customers process all the brands, they will recall a few memorable brands and become attracted to only the short list of brands. This short list of memorable brands with wow factors in their communication goes higher on the shortlist. The brand appeal must be stronger to get into this phase.
Ask
Customers actively do follow-up research on the products and the brands they are attracted. They do so by asking their friends, and relatives and also by asking online and enquiring with the brand officials themselves. They also compare the products and brands online and in-store. They compare the price and features more thoroughly before making the final decision. From this stage, the path changes from individual to social.
Act.
Once the customer is done with the comparison and queries, the customer will act. That is the purchase of a product or service from the brand they shortlisted before. Customer journey towards the purchase should be hassle-free and the purchase process should be made easier. But this is not the end of the customer journey. The product experience and post-purchase services are important. Customers delight and satisfaction is completed depended on their experience with the product.
Advocate.
Customers are more likely to advocate the brand if they are delighted with the product or service experience and post-purchase services. They recommend the product to their friends, families, and co-workers. They may also post good reviews on their social media. This word-of-mouth is very valuable to the company as it is more credible than the brand’s own promotion or communication. The CRM is very important here. There are several loyalty programs that companies offer such as rewards and memberships. These customers are most likely to repeat their purchases.
There are other alternative models such as the models in which the phases include; Stranger, visitor, lead, customer, and promoter. These are also considerable according to the brand’s preference. Either way, it is important to align the tactics and strategies made for different stages of the funnel with the company’s decided positioning and branding strategies.
A marketing funnel is very beneficial as it considers the buyer’s journey and helps optimize the marketing campaign. This will help in increased conversion rate and drive more results. Businesses do not have to try their luck as they decide which target customers, with what is their mind should purchase their product or service. Companies can now formulate a proper strategy and tactics to keep their target customers in mind.
Referral
- Marketing 4.0 co-authored by Philip Kotler, Hermawa Kartajaya and Iwan Setiwan.