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Funnel Marketing and Its Importance

The success of any new enterprise or an organization is gauged by its ability to retain valued customers. In order to understand and calculate this, organizations would need to incorporate the customer experiences with business decisions and take final calls. However, this process is not very easy in an experimental setup, as it requires many specifications and work paths. This is where funnel marketing will come in handy. Let’s understand what it means.

What is funnel marketing?

A marketing funnel or funnel marketing is a methodology to describe customers’ journey with the enterprise. This process is done from the early stages of business to the due course. This will help understand the business from the purchasing stage, customer tracking, increase customer loyalty, and establish brand value among the people. The funnel marketing strategy believes in the saying, “Once a customer, always a customer,” and uses the same strategy working for the business.

This strategy is not something new; it was introduced in the early 20th century itself as the AIDA model, and funnel marketing strategy uses the strategy even today. It includes creating awareness, increasing interest, and improving desire for the brand, and action, which is a purchase. This is a coordinated movement of the business, which makes it easier for the entrepreneur to act.

Importance of the marketing funnel

It is estimated by several studies that companies globally lose around 1.6 billion every year because of the loss of loyal customers. This is usually avoided with proper ownership of the funnel marketing. There are also different funnel marketing models for business-to-business and business-to-customer. It simplifies the customer journey with the company, making the process easier to follow. A funnel marketing platform tracks this process more efficiently. You can look either for regular brick-and-mortar sales or online transactions of the products. Funnel tracking software will come in helpful in both places. The funnel software increases the visibility of the customers to the company and vice versa.

Components or strategies involved in funnel marketing

A funnel marketing strategy is usually a funnel-shaped or inverted pyramid-shaped strategy. The upper wider component is associated with the company, while the lower smaller component is associated with customers or closer to them. Usually, there is no accepted model for a funnel marketing strategy. But the standard one is the awareness, consideration, conversion, loyalty, and advocacy model. This order is top-down; while the awareness is at the top of the funnel, the advocacy component is closer to the customers at the bottom.

Awareness

It will make the brand values and the content of the particular company appeal to the present audiences and potential future customers. This will also improve their transactions and interactions in the future.

Consideration

This component is where the company tends to prove its differences from its fellow organizations and its invincibility to the customers. This will make the customers consider the brand despite other limiting factors.

Conversion

The place where the consideration of the customer is converted into purchasing.

Loyalty

This is a program for loyal customers through email interactions, discounts, and social media influences. It retains customer loyalty.

Advocacy

The receptive individuals will advocate for others to reach out to the brand. Word of mouth marketing is the best way to attain a new set of loyal customers.

Funnel software and its utility

Funnel marketing platforms today are available with robust features, including the traditional sales funnel tools like email automation, content offers distribution, and several hybrid tools. It provides for the company’s sales, marketing, and customer service needs. It helps build a solid customer base, is user-friendly, and helps garner the best possible results from the available resources.

Funnel tracking software is a new addition to this line; it helps track customer activities and their needs regularly. It also records the customer experiences queries and service needs of the sold product. A happy customer is considered to be the best marketer of your product. This is an aspect where the funnel marketing platforms are of great use. They can be tailor-made for you or customized according to your needs.

There is a reduction of data silos, and plenty of manual work has to reach the market and the valued customers. The three-step process put forward by the funnel tracking software includes:

Collection of marketing and customer data

Making the marketing data business-friendly for the consumers

The ability of data visualization for the future

Organizations must consider important factors before going for such products, including the organizational policy, and its theme should be well understood by the funnel software providers. The employees who constantly use the system should also be trained to work along. They also tend to reduce the possibilities of errors in the work.

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