A marketing funnel is used to determine where your customers are to date and where efforts should be targeted.  Let’s go through the example above.

Customers have 5 stages of familiarity with your product or service:

• Unaware: Potential customers who do not know that your product exists
• Awareness: Potential customers who are aware that your product exists
• Consideration: Potential customers who are considering purchasing/ using your product
• Purchase: Customers who have purchased your product
• Repeat/ Recommend: Repeat customers who have re-purchased your product and/or recommend your product to their friends

As you examine the impact of marketing efforts, consider what types of needs your customers have at each of these transition points:

• Unaware → aware: Are customers aware that your service exists?  Find ways to make them aware that a solution to their problems exists by finding ways to come across their path.
• Aware → considering: Customers know that you exist, but may be need help determining which product they want or whether you are worth the effort.  This is where you can differentiate your product (price, features, recommendations, ROI).  Any required customization or negotiation would occur at this step.
• Considering → purchase: Customers have decided to buy, so make sure you close the transaction.  Ensure a smooth buying process and appropriate followup if the process stalls.  Poor experiences can kill a deal that a customer wants to happen, so ensure this is easy and a positive experience.  Also, appropriate expectation setting can keep a customer from backing away as unexpected issues arise.
• Purchase → repeat/ recommend: Your existing customers are your best marketing tool.  Happy customers want to come back and continue to use your product/ service.  Give them the tools to tell relevant friends about you.  This may include highlighting situations where you create value, packaging your value proposition in an easy-to-remember way, or making word-of-mouth easy.

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