Conversion funnels are simply a method that takes potential clients on a stroll towards purchasing your goods or services. They are the basis of almost all e-business models, guiding potential clients from the very first moment that they become aware of your company to the time they make a sale and beyond.
However, what exactly is a conversion funnel and why does it matter when building an internet marketing strategy? Following is an explanation of what a conversion funnel is, its purpose, and some thoughts on how you can use it to optimize your internet marketing results.
Let us define a conversion funnel
In simple terms, conversion funnel stages take prospects through several distinct steps in order to generate a sale. At each stage, a decision is made as to whether or not to move forward with the lead. This is determined by many factors including the characteristics of the lead, the nature of the business, and the ability of the marketer to successfully reach the target audience. Generally, the longer it takes a person to reach a decision, the lower the likelihood that they will purchase from that prospect.
Conversion funnel configuration
Conversion funnels can be used for lead generation, conversions, and profits. By implementing and optimizing your conversion funnel, you will experience an increase in all three areas!
Conversion funnels are divided into four stages:
- the top-of-funnel (TOFU)
- middle-of-funnel (MOFU)
- bottom-of-funnel (BOFU)
- post-conversion stage.
In the most simplistic terms, there are two types of conversion funnel systems: the sales funnel and the marketing funnel. Sales Funnel systems take prospects through a series of sales-oriented activities. Each activity could be a lead capture effort, a sales pitch, a demonstration, or the provision of other complementary products or services. The purpose of each activity is to build a relationship that could lead to a future sale. Most sales funnels begin with a qualified call to action, or COC, followed by a series of follow-up communications, or CRM’s.
Conversion funnel top
First, let’s look at the top-of-funnel (TOFU). The TOFU is where you are collecting leads and building awareness for your product or service. Your goal here is twofold: collect as many leads as possible while also making sure they know what your business offers them. This part of the funnel relies heavily on SEO marketing tactics. You can do that by optimizing web pages with keywords related to your industry, creating lead magnets, an email drip campaign and more! Conversion rates in this section will be low but it’ll help build brand recognition over time which makes future conversion events easier down the line.
The middle of the funnel
Second, comes the middle of the funnel (MOFU). This part of the funnel is where you want to show your leads that your product or service can solve their problems. Conversion rates in this section will be higher than TOFU because they have already been primed with information and are more familiar with what you offer them. You’ll see a shift from organic traffic to paid advertising here as well, which is why it’s important for SEO marketing tactics to still play an integral role in this phase of the conversion funnel.
In addition, effective MOFU strategies include nurturing existing leads by creating automated email drip campaigns and also creating lead magnets specifically designed for subscribers who fall into different stages of the buying process (e.g., early research vs late decision-makers). Conversion rates here will be higher but it’s still important to continue building brand awareness, which is why SEO marketing tactics play a vital role.
The bottom of the sales funnel
The bottom of the funnel (BOFU) is where you convert your leads into customers by utilizing scarcity, urgency, and social proof. Conversion rates are high at this point because of how familiar your lead has become with what you offer them. This section relies heavily on conversion rate optimization (CRO). CRO helps optimize landing pages to increase conversions through split testing different versions, creating pop-up forms, A/B testing emails, etc…
There are many ways in which you can utilize CRO so play around with these methods until you find something that works for your business. Conversion rates in this section are high but it’s important to continue nurturing your leads for future conversion events. This is why building brand awareness through SEO marketing tactics is still crucial in BOFU.
There’s a final stage that must be considered, the post-conversion stage. Here you want to build customer loyalty by offering them continued support after they have converted to your product or service. Conversion rates here will be low because most of your customers will need no additional help with their purchase at this point, which makes CRO less useful since there isn’t much else you can optimize about the lead journey within this phase of the funnel except offer further assistance if needed (e.g., answering questions). Conversion rates are lower here because there isn’t much more you can do at this point to optimize your lead journey.
Is the conversion funnel a one-size item?
Many companies view conversion funnels as a one-size-fits-all approach to generating leads. They look at the process in terms of a number of leads, then try to apply any number of strategies to those leads. Unfortunately, many companies fail to realize that there are many options when it comes to creating qualified leads. This is why many successful marketers now view conversion funnels as a framework that allows them to identify the most appropriate actions based on the identified characteristics of each lead. For example, some companies focus on capturing email addresses, while others look for website traffic or similar criteria.
In addition, there are many options available to improve conversion rates. In order to create a successful conversion funnel, you need to have a clear understanding of what your goals are. By identifying your goals, you can determine which aspects of the funnel need improvement. Once you have determined what aspects of the funnel need to be improved, you can easily select the most appropriate activities to improve your conversions. For example, once you’ve determined what stage of the funnel you are at, you can decide whether you should send emails or promote your website, and when you need to do so.
Once you have optimized your system, you can look at the numbers and analyze whether or not the strategies in place are producing the desired results. This means that if you find that the number of leads passing through your system has been decreasing, you may want to make adjustments to the elements that you are using. In this way, an effective conversion funnel can provide a valuable service to marketers by helping them increase their marketing ROI.