Small businesses – and many medium-sized businesses, for that matter – often have very good ideas, well-developed products, and high quality services. Yet they fail to gain visibility or traction. What gives?
While a lack of results could be tied to thousands of company-specific factors and circumstances, it’s often underscored by one simple reality:
Most businesses don’t have a plan for how they market their products and services to prospects.
And if they do have a plan, it’s not optimized in a way that works with the basic psychology of how people shop for products and make decisions.
Whether it’s impatience or ineptitude depends on the business, but most companies are unwilling to put in the work it takes to nurture leads. They’d rather earn a quick sale. (Unfortunately, this mindset often comes at the expense of losing many leads who would have otherwise been quite valuable.)
What’s the solution?
Well, it’s actually quite simple and sensical – once you understand how it works.
And once you wrap your mind around the correct method of nurturing prospects and converting them into customers, you’ll realize that all businesses ultimately work the same way.
In this article, we’re going to discuss marketing funnels, what they are, how they work, and what it takes to generate content that moves people through your funnel – ultimately resulting in sales.
Does that make you tingle with excitement?
Let’s begin with the basics.
A marketing funnel is essentially a visualization for understanding the processes that take place when a prospect turns into a customer (through a sales lens).
The basic gist is this: A prospect has no clue that your business exists. She then becomes aware of your business and its products, interest is sparked, she evaluates whether she likes your products (in the context of other marketplace options), decides to make a purchase, and ultimately follows through by exchanging money in return for what you’re offering.
It’s called a marketing funnel because of how the number of leads ultimately gets smaller and smaller until only the most qualified are left.
You might have a pool of 15,000 people who are aware of your product, but only 10,000 of them are interested.
Out of this group, just 7,500 take the time and effort to evaluate your product.
And of these, 4,000 make a purchase.
The funnel moves prospects through a sensical step-by-step process that weeds out the disqualified and disinterested, while nurturing those who are interested and likely to become paying customers. (In this sense, it’s an efficient process for both parties.)
While this sounds super formal and rigid, a good marketing funnel is invisible to your prospects.
To them, it’s all engagement.
It starts slow and surface-level and begins moving faster into a more detailed and refined direction. Before they know it, they’re sliding down your well-oiled funnel – ready to open up their wallets and purchase what you’re offering.
Every sales funnel has its own nuances and steps, but they all follow five basic stages. That’s because all human psychology is basically the same. People might seem different – and in many regards they are – but customers tend to act in predictable and repeatable ways. Thus dividing the sales funnel into five clean stages serves as an effective way to standardize the process.
We’ll discuss specific ways to target customers in each of these stages with high-converting content in the next section. For now, let’s get a clear understanding of what’s happening in each of them (from the perspective of the customer).
It’s during this first stage that people become aware of the fact that they have a problem. This is the top of the funnel. (Prior to this point, an individual isn’t actually in your funnel to begin with. They have no issue, so there’s nothing you can do for them.)
Examples of customers entering into the problem or need recognition stage include:
There’s no active searching going on in this phase. Customers in this phase are just realizing they have an issue or need. They’re on the front end of the process.
While some people will live with a problem or need for days, weeks, months, or even years before taking action, most will seek to alleviate or solve it as quickly as possible. This leads them into the information search stage.
During the information search stage, prospects gather information, explore the products and solutions that exist, gather information about different companies, get prices, ask questions, read reviews, browse Google, etc.
Depending on a prospect’s personality and the severity of the problem or need, this information search can be fast (minutes) or extensive (months). Using our four examples above, here’s what the information stage might look like:
These information searches ultimately lead the customer to different companies and professionals
Now a customer is really in the thick of it. They’ve identified that they have a problem and they’ve researched the products and services that exist to solve their problem or smooth over their various points of friction. It’s at this point in the game that multiple options are compared and evaluated against one another.
The evaluation phase is often the most time-consuming – particularly if there are divergent choices and/or the customer is indecisive.
The lower the price point and/or less important the outcome, the faster a prospect moves from stage three to stage four. For example, choosing between Chick-fil-a and Subway for lunch takes just a couple of minutes.
The higher the price point and/or more important the outcome, the longer it takes for a prospect to move from stage three to stage four. For example, choosing the right type of setup for an aging parent (assisted living, nursing home, in-home health aide, etc.) could take months.
Using our illustrations:
Every prospect is different, but this gives you an idea of how they think when solving problems. There’s rarely one choice. There’s almost always two or more options (and sometimes dozens).
Your prospect has successfully entered stage four of the funnel. And this is where a purchase decision is made.
The purchase decision is the natural result of the three stages that precede it. At this phase of the game, a customer is ready to pull out the wallet and swipe the plastic.
Think of this stage like a football field. You’ve already marched 99 yards down the field. Now it’s first and goal from the one-inch line. While it’s technically possible that you don’t score, all you need to do is push the football over the line. A little more effort and no major mistakes (fumble) is all it takes.
Back to our illustrations:
At this stage, the customer is looking to finalize the decision in a purchase. However, they have an expectation that everything will go smoothly. Any unforeseen friction can push the customer back into stage three.
After making a purchase, the customer wants to know that they’ve made the right decision. And if they have made the right decision, they’ll want to tell people about it. (The same goes if they feel regret about their purchase decision.)
Here are some examples of what could happen:
Again, there are so many different options here. But this should give you a basic idea of what’s happening after purchase and why it matters so much.
Okay, now that we have a clear handle on what the funnel looks like and how people move from awareness of a problem to a purchase decision, let’s explore the role of content in this process.
In other words, how can you create high-converting content that greases the funnel, addresses prospects at each stage, and ultimately pushes them further and further down until they make a purchase?
Here’s a closer look.
In the first stage, you’re using content to make people aware of their problem and help them see that they have a need.
Common content options in this stage are articles, advertisements, webinars, podcasts, and paid search leading to landing pages.
As tempting as it may be to shove your product down a prospect’s throat or go in for a quick sale, this stage is all about laying the groundwork. You are helping them see that they have a problem or reassuring them that their need is a valid one.
In stage two, the prospect is interested in finding a solution and actively working toward finding information to assist in solving the problem they face.
Good content options include website content, social media posts, blogs, newsletters, and targeted email campaigns.
Guest blog posts are especially helpful during this stage (as well as the next one). They’re seen as unbiased and helpful. Webinars are great because they’re able to go in-depth and build trust. Get creative!
At this stage of the game, a prospect has some information. They’ve become a mini “expert” on the topic and are ready to evaluate all of the options and alternatives.
Your content should center on establishing your product or solution as the best. You can do this in a positive way (amplifying your brand and using social proof to explain why you’re the best), or in a less positive way (explaining why the competition can’t match up and/or why alternative options are a mistake).
Content commonly used in this phase include white papers, ebooks, brochures, and PDF guides.
It’s purchase time. If you’ll remember from our previous discussion on stage four of the marketing funnel, you’re on the one yard line. All you need is one final push. Don’t mess it up!
Good content for this stage is safe and encouraging. The more specific you can be, the better. We’re talking about case studies, testimonials, data sheets, etc. You want to remind the prospect why they’ve decided to purchase from you.
We’re not going to spend much time discussing stage five, but this is still an important one – particularly for subscription-based businesses and other brands that rely on repeat purchases.
During this phase, the goal is to wow customers, reassure them that they made the right choice, and attempt to upsell or cross-sell.
If you have an email list, this is a good time to slow drip them with the occasional social proof or case study that shows other customers are enjoying the products as well. You want to reassure them and encourage them to purchase again in the future.
If you have some sort of tiered business model with a low-price, mid-price, and premium-price, the objective is to move them up the tiers until they become the most profitable customer they can be.
This is a basic overview of what a marketing funnel looks like and how the right content moves people to action. But it’s important to remember that every business and target audience has its nuances. This is why testing is so valuable.
Once you get your funnel in place, the real work begins.
You need to isolate the key elements in each stage and test how they’re performing in order that you can optimize and iterate.
Here are a few thoughts and ideas to get you moving:
You can’t set a marketing funnel and forget it. Testing is where the magic happens. Don’t be frustrated if your first crack at developing a funnel produces minimal results.
Through regular testing optimization, and iteration, you’ll eventually get to where you need to be.
Marketing can look complex when you view it from the outside looking in. But once you get up close and personal – breaking it down into digestible bits, processes, and stages – it becomes much more approachable.
The hope is that this article has pushed air under your wings. That you feel empowered to tackle marketing in an effective capacity – once and for all.
But we also understand that you may not have the time or internal resources to handle all of it on your own. And that’s totally fine, as well.
At SEO.co, it’s our aim to help you with some of the heavy lifting. We want to assist you in pushing prospects from the awareness stage all the way through the marketing funnel and into the sales stage. We do this by scaling organic traffic with the highest quality content and links on the web.
We’d love to hear from you – contact us today!