A funnel, is a model that represents the journey of a potential customer from the first contact with a company to the purchase decision. The term “funnel” is used because the number of people usually decreases at each stage of the process, similar to a funnel.
Significance of the funnel
The funnel helps companies understand and visualize how potential customers become actual customers. It enables them to measure and optimize the effectiveness of their marketing and sales strategies by identifying the points at which potential customers “drop out” and do not complete the buying process.
Phases of the funnel
A typical funnel consists of several phases that correspond to the different stages of the customer journey:
- Awareness: In this phase, the potential customer becomes aware of a product or service.
- Interest: The potential customer shows interest and looks for more information.
- Decision: The potential customer evaluates different options and makes a purchase decision.
- Action: The customer performs the purchase action.
In summary, the funnel is a model that represents a potential customer’s journey from initial contact to purchase decision. It is an important tool for companies to measure and optimize their marketing and sales strategies.