The purchase funnel, or purchasing funnel, is a consumer-focused marketing model that illustrates the theoretical customer journey toward the purchase of a good or service. This staged process is summarized below: The purchase funnel is also often referred to as the "customer funnel", "marketing funnel", "sales funnel", or "conversion funnel". The association of the funnel model with the AIDA concept was first proposed in Bond Salesmanship by William W. Townsend in 1924. This early model has been modified by marketing consultants and academics to cater to the modern customer and is now referred to in marketing as the "purchase funnel" or "buying funnel". Many different business-to-consumer purchase models exist in marketing today, but it is generally accepted that the modern business-to-business purchase funnel has more stages, considers repurchase intent, and takes into account new technologies and changes in consumer purchase behavior. As a model, the buying funnel has been validated in a variety of domains, including searching, keyword advertising, and lead generation, but also modified to include previously unconsidered steps and metrics such as outbound sales and internet impressions. The purchase funnel concept is used in marketing to guide promotional campaigns targeting different stages of the customer journey and as a basis for customer relationship management (CRM) programs and lead management campaigns.

Conversion funnel

Similar to a purchase funnel, "conversion funnel" is a technical term used in e-commerce operations to describe the track a consumer takes through an Internet advertising or search system, navigating an e-commerce website and finally converting to a sale. The main elements of an online purchase/sales funnel are: The modern conversion funnel can have many entrance points, meaning people can enter at any stage of their life-cycle, they can leave and enter again. This is why an effective online marketing strategy requires an omnichannel approach that combines various traffic sources, campaigns and re-engagement paths, and makes them work as one to finalize the purchase and even lead to loyal customers or brand advocates.

Marketing funnel

Within the broader context of the purchase funnel, the marketing funnel serves as a foundational framework. It systematically depicts the customer journey from initial awareness of a brand or product to the final purchase. It is used by businesses to understand consumer behavior and adapt marketing strategies at each stage of the customer's decision-making process. By segmenting the customer journey into distinct phases (often categorized as awareness, consideration, and conversion), businesses can implement targeted tactics to guide potential customers through the funnel and increase the efficiency of their marketing efforts. The origins of funnel marketing can be traced back to the late 19th century with the development of the AIDA model (Awareness, Interest, Desire, Action) by Elias St. Elmo Lewis. This model provided a foundational framework for understanding how consumers progress through various stages before making a purchase. Over time, the model evolved to include additional stages and emphasize long-term customer relationships. The integration of digital technologies further transformed the funnel by incorporating online channels and enabling data-driven optimization. Notable contributors to this evolution include E.K. Strong, who explored the psychology of selling, and William H. Townsend, who integrated the AIDA model with the funnel concept in 1924. Typically, marketing funnel strategies include the following five macro-stages: Businesses may adapt their funnel strategies to suit specific markets and customer bases, ensuring each phase addresses the needs and behaviors of potential customers.

Subsets within the marketing funnel

Marketing funnel encompasses several strategic approaches designed to engage customers at different stages of the buying and fidelization process. Each subset within the marketing funnel has specific objectives and targets particular interactions with customers, from initial contact to post-purchase follow-up. Common full funnel marketing subsets include: These funnel types are part of a marketing strategy, each tailored to facilitate different goals throughout the customer lifecycle. While terms like "full funnel marketing," "sales funnel," and "purchase funnel" are sometimes used interchangeably, they each serve distinct purposes within a broader marketing framework.

Examples of full funnel marketing

Full funnel marketing can be demonstrated through various real-world applications by companies aiming to guide customers. Content streaming services provide a clear example of this marketing strategy. These companies typically use platforms that are easy to navigate and feature regularly updated content to attract initial user interest, often through free trial offers. Once users are engaged, the services encourage exploration of various subscription models and collect contact information for ongoing marketing efforts, with the goal of converting free trials into paid subscriptions. Another sector that employs full funnel marketing is marketing and sales software. Companies in this industry often offer resources such as e-books, webinars, and templates to obtain contact details from potential leads. These materials are designed to educate potential customers, thereby nurturing leads and establishing the company as a credible authority in its field. This approach aims to increase the likelihood of converting leads into paying customers. In the non-digital realm, athletic apparel companies utilize full funnel marketing by launching comprehensive marketing campaigns that might include television commercials, social media, and event sponsorships. These campaigns typically use engaging slogans and collaborations with well-known athletes and influencers to inspire potential customers. The narrative often focuses on personal achievement and overcoming challenges, which aligns with the promotion of the products as essential tools for personal fitness goals. To drive purchases, these companies might introduce limited-edition products or exclusive collaborations, aiming to move customers through the marketing funnel from awareness to action.

Criticisms and controversies

The marketing funnel model has faced increasing criticism for its traditional approach. The criticism to the model's relevance in the digital age, where consumer behavior has evolved significantly. The rise of digital and social media platforms has altered how consumers interact with brands, often entering the purchasing process at various stages and sometimes moving non-linearly or even reversing their engagement paths. Furthermore, the traditional funnel model has been criticized for its limited focus on post-sale customer experience, which can hinder the development of brand loyalty and advocacy. In response to these criticisms, several alternative models have been proposed to better align with contemporary consumer behavior:

Future trends

The marketing funnel is expected to evolve with advancements in technology, artificial intelligence (AI) and machine learning, which are poised to enhance the personalization and efficiency of marketing strategies. Additionally, the rise of voice technology indicates a shift towards more voice-activated web searches, which could influence the dynamics of content marketing and storytelling towards greater authenticity and personalization.