Digital Marketing Funnel for Successful Business in 2020
Digital marketing funnel has evolved with one,but why your business is still stuck with an outdated one? If your business wants to survive the coronavirus impacted economic slowdown of 2020 and see the years beyond, it is time to reinvent the wheel.
But, first things first.
What is a digital marketing funnel?
Like a traditional marketing funnel, a digital marketing funnel navigates through the touch-points users go through to become a customer from a prospect. On papers, a marketing funnel isn’t complicated, but realistically, it is as tricky as a human mind. It is non-linear as people use different digital marketing company platforms before they finally become a buyer. Even though, most digital marketing funnel includes steps like awareness, retention, engagement and loyalty.
A digital marketing funnel is a combination of techniques and tactics that lets businesses
- Gain more exposure with a targeted segment of the audience
- Generate more quality leads
- Get hold of prospects that have better chances of conversion
Old school marketing funnels (AIDA Model) consist of these steps:
- Brand Awareness: Customers get to know about the presence of a product through various channels propagated by abusiness
- Interest: A customer shows interest in the product
- Desire: The customer likes to buy the product
- Action: The customer buys the product
On the other hand, a modern buying journey isn’t so linear. It comprises various stages and goes through several pre-purchase and post-purchase stages, to thoroughly portray the steps a customer goes through while buying products or availing services on the internet.
Essentially, there are three types of digital marketing funnels:
Type -1: Loop Digital Marketing Funnel
While it is based on the old framework of the AIDA model, it takes into the dynamics of social media and the power of the internet. It is also called Loop Digital Marketing Funnel.
This funnel entails the following steps:
- Awareness – One extraordinary hot sunny day makes you realise that you need an AC.
- Consideration (research and discovery) – There are several AC models in the market, which you like or are available and used by your family. You will also do a quick Google search to understand what kind of services, post-sales services, customer support the brands are providing. You will post a message on social media platforms requesting recommendations from your friends and followers.
- Final decision-You buy an AC.
- Post-purchase (Experience and Loyalty) – Businesses look for repeat transactions. They thrive on the loyalty of their customers and want them to be the advocates of services and brand.
Type -2: Hourglass Digital Marketing Funnel
A more evolved Hourglass Digital Marketing Funnel is embraced continuously and followed by online brands, which extends and flips the pre-purchase, purchase and post-purchase steps, including retention and advocacy in a linear format.
Type -3: Micro-moments
An online journey of a customer will be incomplete without the micro-moments, the times when a user reflexively turns to a device to make a purchase decision.
In general, there are five critical components of a digital marketing funnel, which are:
- Traffic: Often derived organically or paid means of SEO, PPC, social media or blogs
- Value: The customers are ‘realised’ the value of a product via a community, the like-minded leads are fetched
- Opt-in: Customers sign up for newsletters, blog subscription, like the page and so on
- Testing: A/B testing and sequences are run for various content types
- Engagement: Tactics like email marketing, webinar and video marketing take place at this stage
A typical digital marketing funnel has three levels, Top of Funnel (TOFU), Middle of Funnel (MOFU) and Bottom of Funnel (BOFU).
|Top of Funnel (TOFU)||Awareness about the products or informing customers of the USPs of a brand/service||SEO, video marketing, content marketing, SMM|
|Middle of Funnel (MOFU)||Helping customers to make an informed choice by teaching them how to choose amongst available options||SEO, email marketing and aggressive content push|
|Bottom of Funnel (BOFU)||Letting people know why customers need to choose you and how you are the best choice||SEO, PPC, email marketing|
Why does a digital marketing funnel even matter?
Understanding a digital marketing funnel is critical for a business to know their customers and realise the micro-moments in their journey. A digital marketing strategy is based on this funnel, and a business’s success is based on it- because if it doesn’t know its customers and their purchase journey, it might as well call it quits already. Apart from this, there are at least three (crucial) reasons why your business needs to come up with a digital marketing funnel:
- A digital marketing funnel helps you to understand your customers such as their purchase triggers, user persona, demographics and other user behavioural aspects. Your audience is made of real people, with real pain points and practical challenges to overcome. The first step chalks out a blueprint with your customers’ and their data in it.
- Based on these parameters, you can come up with a customised content strategy to tap into this segment. Rather than going with a one-size-fits-all approach with digital marketing strategy and wonder why it fell short, you stay one step ahead with the right information, which is delivered at the right time! Not to mention, the bonus of enhanced user engagement and experience.
- Your customers are not going to come to your place. They need triggers, for, in reality, every product or service is a push product. For some, it could be an offer they can’t resist or their salary day when they would like to splurge a bit. A funnel would take you inside their mind (like, kind of) while showing where your customers are currently at and what type of motivation or push could just move them up in the sales ladder.
Okay. But why has it evolved? Why now?
The internet has made the world a smaller place. And this tremendously impacted the lives of your customers and sales cycle. People have more choices, and more ways to buy products they want. ‘Comparison shopping’ is also a thing. Your customers look for last-minute price checks, reviews and compare features online even if they purchase a product at a brick and mortar store.
While the internet enables your customers to make an informed decision, it gives you a chance to know thy customers. As the customers are evolving, your business and digital marketing funnel need to be rebooted to a version 2. 0 to keep in line with changing preferences, a volatile market and increasing expectations.
The previous one needs an upgrade, yo!
Learning and embracing modern digital marketing funnel can help you understand customer preferences. As a business, you would know what kind of content your customers like to read, what features they look for in a product and what’s stopping them from buying your products. Understanding the needs, pain points and challenges of customers will give a compiled 360-degree perspective to a business and help it prepare a well-crafted digital marketing strategy that delivers.