Mastering the Marketing Funnel: Build, Optimize & Convert

Customers usually don’t whip out their credit cards and buy from you on the spot. They poke around your website, price shop, Google “[Brand name] coupons,” and then maybe circle back to buy the same day — or they might mull it over for a few weeks. 

A marketing funnel helps nudge customers through this journey, so it looks less like a zig-zag and more like a straight line. Sound fancy? You probably already have one, even if you don’t realize it. It’s why some of your marketing materials are informational, while others go for the hard sell. You’re instinctively reaching out to people at different stages of the customer journey.

Building a more intentional funnel lets you turn prospects into customers more effectively. This article breaks down how to create one that actually works, with plenty of examples and tools you can use immediately. 

What is a marketing funnel? 

A marketing funnel (also known as a sales funnel) maps the customer journey from awareness to conversion and beyond. 

It’s called a funnel because the number of leads naturally dwindles at each stage. The top is the widest, where customers first discover your brand. Each following stage gets narrower and narrower, with only a small percentage of leads making it all the way through to actually making a purchase. 

The advertiser Elias St. Elmo Lewis invented this concept over a hundred years ago. His version is called the AIDA model, and it has four stages: 

• Awareness: The “wowza” phase. Someone new stumbles across your brand, and they like what they see. For example, they might spot one of your Facebook ads during a midnight scrolling session and feel curious enough to click it. 
• Interest: Something about your brand speaks to the customer, so they head down the research rabbit hole. This could involve anything from skimming your website to watching reviews on YouTube. 
• Desire: They start forming an emotional connection with your brand. Now, your products or services go from casual interests to must-haves. A fashionista, for instance, may add your sundresses to their “summer parties” Pinterest board. 
• Action: It’s showtime. The customer takes the next step of engaging with your brand by completing a conversion, like joining your newsletter or downloading an ebook. This stage is also when they finally buy something. 

More people will become aware of your brand than take action. That might sound discouraging, but not everyone is ready to buy. You’re playing the long game. By making a strong impression at each stage, you can gradually build interest and shepherd more leads to the finish line. 

Why the marketing funnel still matters

The AIDA model is just as relevant as ever, but it’s not as linear as it once was. For younger shoppers, it can look downright fragmented. 

As a recent Vogue article declares, “Gen Z broke the marketing funnel.” These chronically online customers find brands in new places, like an influencer’s TikTok channel and Amazon. They also tend to move more fluidly between funnel stages instead of going in a straight line. 

A sales funnel helps you cater to these shoppers at every stage. That way, you can follow them as they ping-pong across the internet.

A funnel also enables you to spend your limited resources wisely. Do you need a fresh batch of customers? Buy paid ads or ramp up your Instagram content to build awareness. If you’re trying to boost sales from existing customers, a juicy email coupon could motivate people to take action. 

Your marketing strategy will also feel more structured when you organize it across funnel stages:

• Top of funnel (TOFU)
• Middle of funnel (MOFU)
• Bottom of funnel (BOFU) 

Blog posts, for instance, usually belong at the top of the funnel. They bring new visitors to your site and help them learn about your brand. Meanwhile, a heartfelt customer testimonial goes at the bottom. 

The stages of the marketing funnel 

As you build your marketing funnel, map out a strategy for each phase. Otherwise, you’ll end up with major gaps that leak leads instead of moving them along. 

Awareness (TOFU)

At the top of the funnel, you’re just trying to get your brand out there. Focus on broad campaigns to attract strangers and familiarize them with your brand. 

Blogging is a classic way to bring in traffic. With the right search engine optimization (SEO) techniques, your content will appear when people look up topics related to your industry. Feel free to add a call to action (CTA) to check out one of your products, but don’t be pushy about it. You’re just introducing your brand to new leads, not making a hard sell. 

The software company Eldermark blogs about senior living trends and tools. Someone searching for “data analytics for nursing homes” will likely end up right on the firm’s doorstep. After they find the information they need, they can check out Eldermark’s products or bookmark the site for later. 

For even faster results, try social media ads. They catapult your content into user feeds, making it easier to connect with people who don’t follow you yet. For example, Facebook lets you share product carousels with people who have researched similar items. 

Later in the funnel, you can use these ads with even more targeted audiences, like people who have visited your website. But for the TOFU, it’s best to cast a relatively wide net. 

Influencer mentions are another way to get more eyeballs on your brand. Look for creators in your niche who may be open to a collaboration. This could be as simple as sending them a box full of products to review or open in a video.

Consideration (MOFU)

In the middle of the funnel, your goal is to further educate potential customers about what you provide. Show off your expertise with in-depth resources that actually improve their lives. And keep the sales-y language to a minimum for now. You’re building relationships, not pushing your brand.

Email marketing automation software can handle some of the heavy lifting at this stage. It takes some upfront work to build sequences, but then they’ll run by themselves. 

Start with a welcome email that introduces your brand story. Toss in a few resources, like your knowledge hub or YouTube channel. Then, keep nurturing that connection with a buying guide or product tutorials. 

Want to build your email list first? Try a lead magnet. This is a free item that you give away to encourage customers to share their contact information. For example, Hot Diggity Dog Resort offers free ebooks on dog training in exchange for email addresses. Someone who downloads these resources is more likely to hire a trainer than a casual browser. White papers and templates also help move customers deeper into the marketing funnel. 

Case studies give you more opportunities to establish authority. Ask your satisfied clients if you can spotlight their success stories, and include plenty of data to back up your claims. “Our software saved their accountants eight hours a week” is much more convincing than “productivity skyrocketed.” 

Offer a monthly webinar, too. Talk about trending topics in your field and invite an expert or two into the conversation. And don’t forget to hit record. That way, you can share snippets of your discussion on social media and in emails.

Conversion (BOFU)

The bottom of the funnel is where you get into the nitty-gritty. Customers at this stage are almost ready to make a purchase, but they’re waiting for the right nudge. 

If you sell a software or a service, win them over with free trials or demos. They’ll see exactly what makes your brand so great — and hopefully, feel so dazzled that they decide to commit. Testimonials can also push uncertain prospects off the fence. Invite satisfied customers to record a 30-second video about how your brand helped them. Or collect your favorite written reviews in an image carousel and post it on social media.

This is the stage for strong calls-to-action. Shoppers see “Buy now” all over the internet, so go with something more distinct. A software firm, for instance, may write, “Start your seven-day free trial.” 

Retention and loyalty

Don’t forget about your customers as soon as their payment processes. Keep the momentum going by using Constant Contact’s automation software to send follow-up emails. Customers will appreciate a friendly check-in message with resources: “Here’s how to get the most out of your new X!” Or send a coupon for a matching product, like a camp stove to go with a new tent. 

Loyalty programs are another way to continue relationships. Half of Americans who join these programs are extremely or very engaged. Offer members special discounts and first dibs on new products. 

Advocacy (beyond BOFU)

With some gentle nudging, people who make it all the way through your sales funnel can become superfans. Asking them to review your brand is an obvious first step, but don’t stop there. Offer an enticing incentive for referrals, like 25% off their next purchase. 

Many customers are also eager to participate in user-generated content campaigns. GoPro, for instance, famously invites clients to compete in video competitions to show off its recording equipment. These word-of-mouth promotions can help you reach people who wouldn’t have otherwise entered your marketing funnel.

Funnel variations by business type

While the AIDA model is pretty universal, tweaking it can help you tailor your marketing to your audience even more. 

Ecommerce funnel

Online shoppers can be fickle. They may have impulsively clicked on a product they saw on TikTok, or they’re bouncing between a gazillion tabs. Suddenly, you’ve got a leaky funnel. 

Add an abandoned cart flow to your sales funnel to recapture people who don’t make it all the way through the checkout process. A simple reminder email can be enough to lure them back. Another option is retargeting ads, which lets you reconnect with wayward shoppers on social media and Google. 

Flaunt your product reviews, too. A few glowing comments may persuade shoppers to give your brand a try. 

Track your progress with these metrics: 

• Average order value
• Conversion rate
• Number of repeat purchases  

Service-based business funnel

Get to know your prospects with more hands-on, personalized marketing. It’s a preview of the fabulous service they can expect from your brand. 

For a marketing agency, that could involve sending tailored proposals during the MOFU. After a prospect reads your plan to grow their Instagram account, they may scramble to sign up. A consultation can have the same effect, especially if you reassure leads that there’s no pressure to commit. 

Educational emails build trust, too. Send weekly tips for growing social media accounts, and leads will quickly realize that you’re a Facebook wizard — and want your skills for themselves. 

Local small business funnel

Local businesses should build a marketing funnel that speaks to their community at every stage. A gym, for instance, could organize summer camps for middle schoolers or a 5k to raise money for the community animal shelter. These at-home initiatives create goodwill and spread the word about your brand. 

Local SEO is another key part of SMB funnel optimization. Set up a Google Maps listing so nearby customers can find you, and use local keywords — like “mobile dog groomer in Manhattan” — to improve your search visibility. 

Building a marketing funnel from scratch 

At this point, you probably already have a few marketing ideas for different funnel stages. Here’s how to bring it all together. 

Step 1: Define audience & buyer personas

Marketing funnels work best when they target specific buyers from the very beginning. Otherwise, you’ll waste a lot of time (and money) filtering out people who aren’t likely to convert. 

Analyze your sales data to identify your biggest spenders. A boutique dog food brand may appeal to high-income people without children. For a local cafe, remote workers may be your most devoted coffee drinkers. 

Use this information to outline buyer personas, or semi-fictional characters. Think about each group’s motivations, struggles, and even their daily routines. Later, you can use segmentation and targeting tools to tailor your messaging for each character. It’s much easier to write emails to “Becky, a middle-class shopper with two Golden retrievers” than generic “female dog owners.” 

Step 2: Map funnel stages

Use the AIDA model to design a funnel that fits your buyer’s journey. Research how customers actually interact with your brand instead of making assumptions. Gen Z may care deeply about influencer opinions in the awareness phase, while Baby Boomers may find you through your blog. 

Step 3: Choose content and tactics for each funnel stage

Once you’ve outlined your funnel stages, limit yourself to just two or three tactics for each. The last thing you want to do is spread yourself too thin, especially at the beginning. 

Here’s what that could look like for a tutoring business: 

• Build awareness by creating blog posts and Facebook Reels for parents who want to help their kids get better grades. 
• Convince families to consider your services by offering an ebook with study tips as a lead magnet and sharing case studies about students who’ve conquered calculus with your support. 
• Provide free consultations for parents and students. During these meetings, you’ll convert them with your custom study plans. 
• Existing students can earn free sessions by referring their friends, increasing loyalty. 

Step 4: Select the tools and platforms you’ll use

Worried your marketing funnel will triple your workload? Not with the right software. Use Constant Contact’s social media marketing tools to share content across all your platforms automatically. Instead of wading through Facebook first thing in the morning, your posts will go live while you’re still sipping your coffee.

Constant Contact’s customer relationship management (CRM) and integrations also speed up content creation. For example, you can combine email marketing software with Salesforce so you can quickly message all your contacts. 

Step 5: Implement & test your funnel

Experimentation is the key to marketing funnel optimization. Don’t be afraid to try out a zany CTA or a new video format. You never know what will unexpectedly spark your audience’s interest. 

Constant Contact makes it easy to track metrics, such as conversion rate and how many people make it through each funnel stage. Use this data to track your success and pivot if one of your tactics isn’t getting results. If only 5% of your customers make it from the TOFU to the MOFU, it’s time to rethink your awareness techniques. 

Optimize your marketing for every stage of the funnel

At any moment, there are customers in every phase of your marketing funnel. With a thoughtful plan, you can guide them from “hmm, what’s this brand about?” to loyal, repeat customers. 

The first step is auditing your current funnel to see where people drop off. Focus on the biggest gaps, and use automation tools to lighten your workload. If you’re struggling to move folks into the bottom of the funnel (AKA make a purchase), a carefully crafted email sequence talking up the benefits of your products or services could make a huge difference. If you’re not getting enough prospects into the top of the funnel, consider social media ads to find new people who might be interested in what you have to offer.

Ready to turn meandering customer journeys into a well-oiled, revenue-generating machine? Check out our free downloadable guide Fine-Tuning the Funnel for more tips on how to finesse your marketing funnel.