Digital Marketing Funneling: How to Increase Sales of Customer-Focused Businesses through Data.
In the ever-evolving digital era, a solid understanding of the digital marketing funnel can offer substantial benefits to businesses. For those looking to grasp how digital funnels work and their advantages, this article provides a detailed explanation from the perspective of a marketing professional with over 15 years of experience.
Key Takeaway:
- The digital marketing funnel is a strategy used to attract, persuade, and convert prospects into loyal customers.
- The basic concept of the marketing funnel involves the following stages:
Top of Funnel (TOFU): The primary focus is on gathering a potential audience as prospective customers by capturing attention through ads, engaging content, or other marketing strategies.
Middle of Funnel (MOFU): At this stage, potential customers start getting a deeper understanding of the brand or products offered.
Bottom of Funnel (BOFU): At this stage, potential customers are ready to make a purchase or utilize the offered services. - Several popular marketing funnel models include:
- ACCL Model: Awareness, Consideration, Conversion, Loyalty
- AIDA Model: Attention, Interest, Desire, Action
- AISAS Model: Attention, Interest, Search, Action, Share
- AAARRR Model: Awareness, Acquisition, Activation, Revenue, Retention, Referral
What is a Marketing Funnel Strategy?
A marketing funnel is a strategy used in marketing to attract, persuade, and convert prospects into loyal customers. This concept is closely related to the stages a potential customer goes through, from initially learning about a brand or product to making a purchase.
Read Also: Steps to Develop an Effective Digital Marketing Strategy for Businesses
Basic Concept of Marketing Funnel Stages
The marketing funnel is often visualized as a wide tube at the top and narrow at the bottom. Its main function is to guide fluids or powders into a small hole. This analogy is applied to marketing theory to illustrate the following:
- Audience size reduction from broad to narrow.
- Changes in customer interest and focus.
- Marketing channels used.
- Shifts in customer behavior.
Benefits of a Digital Marketing Funnel
Here are some key reasons why a digital marketing funnel is essential:
- Targeted Messaging: Different messages and media may be used at each customer stage, providing a personalized touch.
- Segmentation and Analysis: The digital marketing funnel allows businesses to gather data and conduct in-depth analysis. By understanding customer behavior and tracking key metrics, businesses can make more informed decisions and improve their marketing campaigns.
- Enhanced Measurement and Reporting: The funnel enables businesses to track and measure every stage of the customer journey, offering valuable insights into campaign performance and allowing for strategy adjustments.
Elements of the Marketing Funnel Stages: TOFU, MOFU, BOFU
Before diving into the various funnel models, it’s essential to understand the core elements present in all funnel theories:
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Top of Funnel (TOFU): The goal is to attract potential customers by capturing attention through ads, engaging content, or other marketing tactics. Branding and awareness are key to expanding the brand’s reach to the target audience.
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Middle of Funnel (MOFU): At this stage, the audience becomes more familiar with the brand or product. They research, read reviews, compare with competitors, and consider making a purchase. It’s important to have informative content, positive testimonials, and compelling marketing strategies to aid their decision-making process.
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Bottom of Funnel (BOFU): Potential customers are now ready to buy. It’s crucial to offer incentives and clear benefits that encourage them to choose your brand over the competition. The priority at this stage is to convert visitors into paying customers.
Example Marketing Funnels
ACCL Funnel Model
ACCL stands for Awareness, Consideration, Conversion, and Loyalty.
This is one of the most widely adopted marketing strategies. The concept of this funnel includes Awareness, Consideration, Conversion, and Loyalty. Each stage plays a crucial role in building relationships with potential customers and increasing business sales.
- Awareness: At this stage, the primary focus is to attract the attention of potential customers and make them aware of the brand being offered. Brand awareness starts with consumer research, followed by efforts to attract potential customers to the brand and help them recognize and remember it.
- Consideration: The goal of the consideration stage is to increase the likelihood that potential customers will consider the brand and products during their shopping process. Marketing messages in this stage must address the problems potential customers are facing, emphasize their interests, or answer any questions they might have.
- Conversion: The aim of the conversion stage is to encourage potential customers to make a purchase because they believe the brand they choose is the right solution for their problems or needs. This stage is also known as the “decision” or “purchase” stage, where the brand has the opportunity to differentiate itself from similar products in the market.
- Loyalty: At this stage, the brand can create loyalty by providing a seamless purchasing experience and offering quality products or services. By following up and maintaining relationships with customers after the purchase, the brand can remain top of mind.
AAARRR Model
Popularized by Dave McClure in 2007, this model is designed to help businesses use the right data for their marketing and sales programs. The AAARRR funnel is a model developed for startups as a Growth Hacking strategy. The focus of this concept is on business metrics. AAARRR is often referred to as the “Pirate Funnel.”
The breakdown of AAARRR is as follows:
- Awareness: Measures the level of brand awareness and the channels used. Brand awareness is often measured by impressions, CTR, and clicks. Media used can include paid ads or organic content.
- Acquisition: This stage focuses on how well brand awareness converts into visits to the product or digital assets. Metrics to consider could include changes in subscribers, number of downloads, etc.
- Activation: Measures how many potential customers take actions to engage with the product or service, yet still remain in non-transactional stages, such as free trials, contact creation, or account creation.
- Revenue: Measures how many potential customers turn into paying customers by purchasing products, subscribing to services, or making similar transactional actions.
- Retention: Measures how well customers return to make repeat purchases.
- Referral: Measures how many customers recommend the product or services to others.
INBOUND MARKETING Model
Inbound marketing is a digital strategy that focuses on the customer experience, aiming to build meaningful, long-term relationships with potential consumers, prospects, and customers.
The inbound marketing concept was created by Brian Halligan, CEO and Co-Founder of HubSpot, in 2019.
The inbound methodology can be divided into several stages:
- Attract: Attracting the right people through valuable content and conversations, so that you are seen as a trusted advisor. At this stage, it’s important to communicate an engaging message to potential consumers, so they become interested in your product.
- Engage: Providing insights and solutions relevant to the challenges and goals of potential consumers, making them more likely to purchase from you. When potential consumers see the benefits of the strategies you offer, they are more motivated to transact with you. In this stage, you must ensure that the message you communicate is aligned with the business and the buyer’s journey.
- Delight: Offering support and guidance to empower customers to achieve success using your product. At this stage, it is crucial to ensure that customers feel valued and supported. This can be achieved by providing the right strategies to help customers reach their goals.
AIDA (+L) Funnel
The AIDA model is one of the oldest marketing models among all the funnels discussed here. This technique emerged in the 1960s and 1970s, with the rise of television and direct mail. AIDA strategy was clearly evident in TV commercials during the early 1960s. Interestingly, the AIDA concept is still frequently used in ad creation and sales pages.
The AIDA model is broken down into several stages:
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Attention: This stage refers to the journey prospects take from becoming aware of the product or service offered.
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Interest: Cultivating interest by providing relevant and engaging information.
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Desire: Stimulating desire by highlighting the benefits of the product or service.
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Action: Encouraging conversion actions, such as deciding to purchase the product or service.
In modern times, the AIDA concept is often enhanced with two additional stages: -
Loyalty: This factor drives customers to stay loyal to the product or brand.
Thus, the AIDA concept remains relevant in today’s digital marketing world, where marketers can adapt the principles of AIDA into their online marketing campaigns for higher efficiency and effectiveness.
AISAS Funnel
AISAS is a digital marketing strategy using a funnel developed from the AIDA concept, adopting consumer behavior that involves searching and sharing information with others. AISAS was introduced by one of Japan’s largest advertising agencies, Dentsu, in 2004.
The stages of the AISAS Digital Marketing Funnel are as follows:
- Attention: Attracting the attention of potential customers and making them aware of the product or service being offered.
- Interest: Sparking interest in potential customers by highlighting the advantages of the product or service that can benefit them.
- Search: Assisting potential customers in conducting further research on the product or service, including seeking reviews and customer testimonials.
- Action: Encouraging customers to take purchase actions based on the positive information they have received.
- Share: Encouraging customers to share their positive experiences and reviews about the product or service with others on social media or other platforms.
Let’s Build Your Digital Marketing Funnel with Doxadigital
Are you a business owner seeking a comprehensive digital marketing campaign? Contact Doxadigital! We specialize in creating digital marketing funnels to connect businesses with the right audience through professional digital marketing services such as Google Ads, TikTok Ads, Facebook and Instagram Ads, Social Media Marketing, SEO optimization, Web Development, and Email Marketing. We are trusted partners with Google Premier Partner, Facebook Preferred Agency, TikTok Agency, and Freshworks Gold Partner. Visit Doxadigital or reach us via WA Chat at +6282288883692 for more information.
Viktor Iwan adalah CEO dan pendiri Doxadigital Creative Digital Agency. Dia juga merupakan pembicara dan pelatih publik dalam berbagai acara pemasaran digital seperti “Social Media Week”, “Tech in Asia”, “WordCamp”, “SEOCon”, “QuBisa Bootcamp”, dan “Google Agency Bootcamp”. Viktor Iwan memiliki sertifikasi Google Ads, Facebook Lead Trainer, Facebook Media Buying and Planning, dan Google Analytics. Dia juga menjadi salah satu dari 5 Product Expert Google Ads asal Indonesia oleh Google Inc. Viktor Iwan juga memiliki website pribadi di viktoriwan.com.