It is no secret that the volume of customers impacts a company’s bottom line, and that indicates acquiring customers is one way to ensure a steady flow of income.
A business must have a community of repeat customers to ensure its revenue stream is maintained. This is why every company should have a customer acquisition funnel.
It guides an enterprise through the process of attracting, converting, and retaining customers, as well as improving brand awareness and increasing leads.
This article will feature the customer acquisition funnel, its stages, and some key tips for maximizing it in business.
What is a customer acquisition funnel?
A customer acquisition funnel is a process businesses use to attract, convert, and possibly retain new customers. Its goal is to create a clear path for potential customers to become paying customers.
This can be done through various methods, such as advertising, content marketing, and social media.
Customer acquisition is prominent in the business world today.
In fact, Profitwell’s latest report shows that customer acquisition cost (CAC) is up across both B2B and B2C companies and has increased by nearly 50% over the past five years.
Further, more entrepreneurs use customer acquisition funnel to measure the effectiveness of their marketing tactics. It helps them determine which activities are worth investing in.
6 stages of the customer acquisition funnel
The customer acquisition funnel describes the process users go through when they become aware of a product and then decide to become customers.
The following are the six stages of an ideal customer acquisition funnel:
1. Awareness
This is where potential customers first become aware of a brand but don’t yet have any specific interest. They may have heard about it from advertising, word-of-mouth, or other channels.
Unfortunately, MarketingSherpa’s latest study found that 79% of leads never convert to sales opportunities.
Businesses take this opportunity to be the most creative in attracting new customers and getting them interested in what they have to offer.
This can be done through social media platforms or by sending them an email newsletter with interesting information.
2. Interest
When someone moves into this stage, they’re showing eagerness in what the business has to offer but haven’t yet made a decision.
At this point, it’s important to keep generating leads and convert them into sales opportunities as quickly as possible before they lose interest again.
This might lead them to start following the brand on social media or subscribing to newsletters.
3. Consideration
In this stage of the customer acquisition funnel, consumers become aware of the brand and start researching and considering it as an option.
Thus, it is important to convince them that a business is offering a solution that will solve their problem or fulfill their needs.
Educating customers or offering a free trial, so they can try out a product or service for themselves can be the best move.
4. Intent
This is a customer acquisition funnel stage where businesses want to create content that will resonate with these people and convince them to buy.
Intent can be triggered by many factors, including an ad on social media, an article they read, or even word-of-mouth recommendations from friends and family.
The most important thing is that they actively seek information about a product or service. Visitors have specific intents that they want to fulfill.
5. Evaluation
Consumers will compare a brand to other similar products or services and see if they should move forward with its offerings.
Evaluating whether a product or service is right for them is usually a multi-step process with lots of options at each step along the way. Thus, convincing them is an essential part.
6. Purchase
This is the most obvious stage in the customer acquisition funnel because this is when the customer becomes a paying customer.
However, it does not mean they are completely sold on a product just yet. There are still many steps before the customer becomes a loyal brand user.
Key tips for maximizing customer acquisition funnel
The key to success is understanding customers so the company can drive them through the funnel at every stage, but creating it can be challenging.
Here are some tips for making an effective customer acquisition funnel:
Identify a funnel blockage point
In the customer acquisition funnel, identify the top point of frustration and use it as the basis for the business’s marketing strategy.
Understanding how customers interact with the website helps identify where they drop out. Thus, the company must optimize the customer experience to keep them moving through the funnel.
Ensure product or market fit
If a business can’t find anyone who wants what they have to offer, then no amount of marketing will convince people to buy from it — no matter how many ads they run.
It’s important to ensure that whatever it is selling is something that people actually want or need. This is known as market fit, and it’s essential for any successful business venture.
Prioritize customer experience
A great product alone isn’t enough to generate sales — it also needs great service and support. If customers don’t feel like they’re getting what they paid for, they’re unlikely to buy again.
It is important to create an effective customer acquisition funnel which will help to have a great experience, so consumers will come back again.
Optimize your marketing with a customer acquisition funnel
A customer acquisition funnel is a vital tool for businesses to acquire new customers, increase their conversion rate, and achieve their goals.
If a company needs to save time and energy but wants to increase sales and revenue, then a well-optimized customer acquisition funnel is one of the best ways.
Ultimately, a customer acquisition funnel is crucial for winning more sales and moving the business to the next level.
