The conversion funnel is the process a person goes through when they become a customer. Due to the overwhelming amount of content on the Internet, buyer behavior is changing more and more. People first inform themselves before they buy anything. Marketing automation is one way to narrow these people down so they are more likely to convert.
The conversion funnel can be broken down into a few basic levels:
- Awareness: The potential buyer will know for sure that the company, product, or service exists. For this person, it is too early to make a decision but they are now aware of the company/product/service.
- Interest: Not everyone who is aware of the company/product/service has the need to buy it. At this point, those who are interested will request a free trial, follow the company on the social media channels, or browse the company's blog.
- Consideration: Now the person is so familiar with your company that they like your service/product. However, it is too early to make a purchase decision.
- Action: This is the stage at which someone decides whether to convert or not. This stage ends with a purchase decision.
Ideally, once a customer has made a purchase, they will buy back from the company. However, people will also fly out of the conversion funnel, no matter how well it is built. At best, only 1-5% of the people who have gone through the conversion funnel will convert. If someone flies out of it, this is called churn. Some churn is unavoidable, but marketing automation helps to reduce this churn rate. By identifying the needs and interests of visitors, it is easier to provide them with valuable content tailored to them.