Supportsoft Glossary

Marketing Funnel Stages Explained for Lead Conversion

The marketing funnel is the sequence of steps that a potential customer (also referred to as a lead) goes through from when they first discover your business to when they become a customer (conversion) and eventually remain a customer (retention). The funnel gives a business a better understanding of buyer behaviour and helps businesses create the best opportunities to engage with potential customers at each stage of the customer journey.

The stages of the marketing funnel will typically include awareness, consideration, decision, and post-conversion engagement. The communications, content, and sales efforts associated with each stage of the funnel must be targeted to help move the prospect towards conversion. A variety of digital communications channels (website, email, search, social media, etc.) are a critical component of the funnel execution.

IT services and IT-enabled services have a different sales cycle pattern (longer) than most businesses, as well as having multiple decision-makers involved in the purchase decision. Without an effective funnel management system, there would be an inconsistency of nurturing, qualifying, and aligning the sales and marketing teams.

When utilising analytics, automation and CRM (Customer Relationship Management) systems, an organisation is able to monitor the funnel performance, identify where drop-offs occur and improve the efficiency of conversion. Optimising the funnel will provide an organisation with higher-quality leads, greater return on investment, and the ability to grow revenue over the long term.