What is a funnel in marketing

In marketing, a funnel refers to a conceptual model that illustrates the journey a potential customer takes from being aware of a product or service to making a purchase decision. The funnel analogy is used because, similar to how liquid flows through a funnel, potential customers pass through different stages before converting into actual customers. These stages typically include:

1. Awareness: This is the stage where potential customers become aware of a product or service's existence. It could happen through various channels such as advertising, social media, word-of-mouth, etc.
2. Interest: After becoming aware, potential customers may show interest in the product or service. They may start researching more about it, comparing it with alternatives, and seeking information to understand its features and benefits better.
3. Consideration: At this stage, potential customers are actively considering whether the product or service is the right solution for their needs. They may engage more deeply with the brand's content, read reviews, compare pricing, and evaluate different options.
4. Intent: This is the stage where potential customers signal their intention to make a purchase. They might add items to their cart, request quotes, sign up for trials, or take other actions indicating a readiness to buy.
5. Purchase: Finally, in this stage, potential customers become actual customers by making a purchase. They complete the transaction and acquire the product or service.

In addition to these primary stages, some models include post-purchase stages such as retention, advocacy, and loyalty, emphasizing the importance of retaining customers and turning them into brand advocates.

The funnel concept helps marketers understand and analyze the customer journey, identify potential bottlenecks or areas for improvement, and tailor marketing strategies and tactics to effectively guide potential customers through each stage towards conversion.