Funnel or Conversion Funnel

To refresh your memory - or introduce the concept - I am going to explain what a conversion funnel is and it’s importance. Then we will take a look at a simple example that will help you understand the concept better
Funnel o embudo de conversion

Conversion Funnel Stages

Brand Awareness

It is the first phase in which the customer does not know the brand or service offered. The mission within the company’s marketing department is to make the brand known to this client. How?
  • For example, we could advertise our product or service on social networks such as Facebook, Instagram or Youtube. These channels are ideal to publicize the brand since they allow explanatory and descriptive formats through videos. Which, for example, banners on digital media sites such as La Vanguardia, El Mundo or The Economist do not allow us.

Consideration

This phase of the conversion funnel is characterized by the fact that the client already has knowledge of our brand, however, as its name indicates, he or she is considering the option that we are offering, and perhaps is comparing it with other competitors. The classic type of advertising that is done at this stage is brand defense in search engines like Google.
  • For example, if someone searches for the name of our brand on Google, it is absolutely essential that we appear first in the search engine results. This, apart from being achieved organically, can be achieved by paying for advertising within search engines also known as SEM (Search Engine Marketing). On many occasions, there are brands that do not protect the positioning of their brand and competitors’ can pay to appear in searches for said brand.

Conversion

This phase, as the name suggests, is intended to make consumers buy the product or service once they have already gone through the previous two stages. It should be noted that the period of time between the brand awareness stage and the conversion stage varies greatly depending on the product or service offered. In some cases, it may take months while in others the user may go through all three stages within minutes. The quintessential advertising is done at this stage, known as remarketing.
  • Let’s imagine that a customer has seen our product on Instagram, and entered our website, then they searched Google and we have hit them with a brand defense SEM ad. This customer may very well be seriously considering purchasing from us. An example of a campaign focused on conversion would be to launch a remarketing campaign on this same user, for example through the Google Display Network or GDN in which banner ads of our products are shown through digital media such as El Mundo, La Vanguardia or The Economist. A very common practice in this type of remarketing campaign is to offer discounts or display urgent messages, the typical being “limited access”.

Loyalty

At this stage of the conversion funnel, the customer has already purchased the product or service and the objective is to keep them buying from us on a recurring basis. In this stage, tools such as CRM or email marketing tools play an essential role, allowing effective communication with the user base. This stage is strongly marked by the experience that the user has had with the product or service that we have provided and therefore their degree of satisfaction.
  • An example of a loyalty campaign would be, if we have a product that is very seasonal, communicating the news of the new season to users who have already purchased previously, through an email campaign to the customer database.

Relationship between conversion funnel and CRO

The conversion funnel is a term used very often alongside CRO or Conversion Rate Optimization. The objective of CRO is to ensure that the conversion funnel is as effective as possible, guiding visitors to your website towards the action you want them to take, whether they leave their contact or lead information. For example, if you are a company that provides professional on-site services, such as a law firm, or if a customer makes a purchase in your e-commerce if, you sell clothes. Optimizing your conversion funnel is essential to ensure you get the most out of your payment campaigns. Finally, and as you can imagine, it is called a funnel or conversion funnel because the number of users who are at the highest part of the funnel, the phase or stage of brand awareness is much higher than the number of users who end up coming to the website.  

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