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Beginner’s guide to Funnel Analysis
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Beginner’s guide to Funnel Analysis

What is a Funnel Analysis?

Funnel analysis is a process for assessing the sequence of events that leads to conversion. Funnel analysis enables product and marketing managers to understand user behaviors and their challenges along the customer journey.
With this analysis, you’ll be able to map out and forecast your primary marketing channels while knowing exactly how your website’s visitors engage with your business at each level of your funnel.
This analysis immensely helps marketers as they can utilize the information gathered from these funnels to improve the effectiveness, generate more revenue, or provide a better website experience.

What is a Marketing Funnel?

A marketing funnel visual represents your customer’s journey with you. It is a routes map to conversion and beyond, from the first stages when someone learns about your organization to the last step when someone makes a purchase.
A marketing funnel, when carefully analyzed, explains what your organization must do to influence consumers at various phases.
The idea behind the Funnel strategy is that, like a funnel, marketers also try to capture as many leads as possible and then gradually nurture prospective consumers through the purchasing decision, narrowing down these candidates at each stage of the funnel.

Since the early 1900s, the fundamentals of the marketing funnel have remained pretty consistent. No single model, however, is widely adopted by all businesses. But most people prefer to keep their model simple, mostly employing the “TOFU-MOFU-BOFU” technique to keep it easy to track.

  • TOFU (Top of the funnel): The visitor is in the “awareness stage” at the top of the marketing funnel. They may or may not be aware of your brand or even the items or solutions they require. At this stage, your goal is to get your brand noticed, raise Awareness, and establish trust.
  • MOFU (Middle of funnel): The MOFU client has narrowed down their options and identified their problem. They’re ready to consider your brand as a viable choice. They are, however, still weighing the pros and cons of several brands.
  • BOFU (Bottom of Funnel): Your bottom-of-the-funnel leads are well-qualified and on the verge of making a buy. They’ve agreed to stick with you through the two higher funnel levels, making this the smallest and most profitable pool of prospects. They only need a little extra nudge to buy

Concept Of AIDA

The AIDA model is possibly the most well-known among all the classic marketing models. The AIDA Model (Attention, Interest, Desire, and Action) is an advertising model that highlights the stages that a person goes through while acquiring a product or service. This model is pretty common in Digital marketing, sales & public relations techniques.

Let’s take a closer look at this.

  1. Attention: The first stage in marketing or advertising is to think about how to get people’s attention.
  2. Interest: Once a consumer is aware of the potential of a product or service, the company must try to ignite the potential customer’s interest.
  3. Desire: Once a customer has expressed interest in a product or service, the goal is to make them want to try it, shifting their mentality from “I like it” to “I want it.”
  4. Action: The ultimate goal of any marketing effort is to get the client to take action and buy the product or service.
As a result, according to the AIDA model, Awareness leads to interest, which contributes to Desire, which leads to Action.

Why is Funnel Analysis important?

Thousands of people visit your website every day, yet only a small percentage of that traffic converts into sales or signups. You can utilize funnel analysis to figure out where users are leaving your site and work on fixing the issues causing potential customers to leave, leading to poor conversion.
Using funnel analysis tools can help you find out the pain points and identify areas of friction that may be the cause of lower conversion hence hindering your business’s growth.
A sales funnel visualization tool can assist you in identifying hidden issues that may be causing conversion obstacles and causing potential buyers to leave your site without taking any action.

At Kuware, treat these Funnels analyses like the test reports of your marketing strategy that tell you what is going right and what is not.

What is the Digital Marketing funnel?

The Digital Marketing Funnel is a strategy model that depicts the customers’ full buying path, from the moment they learn about your company to the moment they become clients.
This concept is popular among sales associates, but it has also become a critical resource for marketing success.
The funnel concept can be approached in various ways, but these are some standard stages that are commonly found.
  • Exposure
  • Discovery
  • Consideration
  • Conversion
  • Customer relationship
  • Retention

Knowing these stages can help you figure out at what stage the customer is bouncing back so that you can work on these areas for better customer engagement.

Why should you be using funnel analysis?

Well, the question is, why should you not use funnel analysis? We are sure we haven’t got any reason not to try this. So now that we know that funnel analysis is of utmost importance to your business, let’s break down the benefits of funnel analysis for better understanding:

1- Helps you make decisions at the right time

Doing funnel analysis is like getting a full-body check-up done when you feel something is wrong with your body. Just like that, when you feel that you are losing potential customers or aren’t converting enough, it’s high time for you to do a funnel analysis to get a clear picture of where the problem lies and work on it while you still have time to fix these errors.

2- Helps right team members to take action

Once you know where the problem lies, you can segment the grey areas and assign the task accordingly. It will help you envision and let you know where the pain point is rather than trying to get a good guess at where the problem may lie. Also, the productivity of your entire team tends to increase once certain specialists devote themselves to a specific task.

3- Helps you get a clear vision

You have no time to ‘beat around the bushes when your business is down. Knowing WHAT something needs to be fixed is as important as knowing HOW needs to be fixed; it just simplifies things for everyone on your team, giving everyone a clear vision to work on the problem points.

4- Helps in comparison

It helps you compare your highs and lows and help figure out what is right for your business. Having statistical data that can help you compare your monthly or yearly funnels. It is a great way to map out the future actions that can help you rectify your errors done in the past.

5- Helps to keep up with changes

As time changes, consumers’ habits and patterns will change too. You’ll need to examine and observe those changes from time to time to stay ahead in your business. Doing Funnel analysis is a great way to alert you when something isn’t right, and it will keep you updated with current changes and market shifts.

Best Tools for Funnel Analysis

Here is the list of some of our favorite tools that will help your Funnel Analysis task easier.

  1. Google Analytics- One of the best FREE online analytics tools with goals tracking feature.
  2. Plerdy- is one of the most commonly used tools for analyzing sales funnels in general.
  3. Instapage- The best landing page builder and funnel analytics tool.
  4. Visitor Analytics- The most user-friendly. Full web analytics are included, as well as other features.
  5. OptimizePress- is the best WordPress plugin. Create and track complete sales funnels, landing pages, and tracking analytics.
  6. Woopra- is the best tool for analyzing the entire client journey.
Have something more to add? Or did we miss anything? Let us know in the comments below.