Whether you use a simple 2-step funnel (like leads to sale) or follow a more complex multi-stage model, your marketing funnel is the flow of your business. It's a superpower to create a marketing funnel that is right for you. You get visibility into the metrics to predict the future. Better yet, you can take corrective action to change the future.
Software engineering trainer turned into a startup founder. Building GetTheAudience, the audience development tool for entrepreneurs and creators.
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You won't believe how old I am and that I'm still hacking and founding.
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The Koala bear. They look so relaxed!
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Databox pulls all of your data into one place so you can track performance and discover insights in real-time.
The dashboards are not only beautiful, but a powerful way to keep data visible to everyone. You can create desktop, mobile, or TV Dashboards that can be shared with everyone.
There's a slight learning curve if you want to get into the advanced features of Databox.
Use your raw data in Excel to visualize your marketing funnel and associated metrics.
1. Start an Excel spreadsheet with your data that you use to define your funnel.
For this example, we will use the simple AIDA funnel: Attention, Interest, Desire, Action. Each lead has a field that indicates which stage it is currently in. Your data will be unique to you.
2. In a new Excel tab, create a table with the rows being the funnel stages and the columns being the metrics.
In this example, the metrics I am using are:
Number of People: Sum of the people who have ever been in the stage.
Stage Flow: The percent of people who have moved from the prior stage into this stage.
Overall Funnel Conversion: The percent of all leads who entered the funnel who have made it to that stage.
3. Define your formulas to calculate the funnel metrics.
You can use a SUMIF formula or COUNTIF formula to calculate data for each stage.
4. Insert a SmartArt graphic of an inverted pyramid.
Format and customize to match your marketing funnel.
5. Convert your SmartArt graphic to a SmartShape.
Click this button in the SmartArt Design menu.
This will allow you to use a formula as the text label for the shape in order to make the graphic dynamic with your data.
6. Click on the Text Box of the stage and go to the formula bar to enter the formula you want as the label.
In this example, I created a cell called Chart Label that concatenated the stage name, the # of People, and the Stage Full metrics.
If you want to add a carriage return in your label, you would enter Char(10) in the formula.
For example: the formula for the first stage of the example funnel
=B4 & CHAR(10) & C4 & "-" & TEXT(D4,"0.0%).
Your marketing funnel is a model for the flow of your business. You've probably seen all of the acronyms and models out there. Here are just a few:
Attention ➡️ Interest ➡️ Desire ➡️ Action
Acquisition ➡️ Activation ➡️ Retention ➡️ Referral ➡️ Revenue
Eyeballs ➡️ Action ➡️ Sales ➡️ Loyalty
👄 KISS: "Keep it Simple Stupid"
Visit ➡️ Sale
Here's the problem. None of these are any good if they are theoretical. No matter what stages of the funnel you decide to use, there are critical characteristics that will determine if your funnel will be a powerful tool or just a talking point.
Each stage should have an objective action that defines moving into that stage. A form is submitted. A quote is accepted. A demo is scheduled. If the stage is defined by someone's gut feel or conflicting definitions, your funnel will be muddy and not useful.
It's best if stages are automated, and do not require human intervention to "stage" a lead.
Each stage should have defined metrics as feedback to determine the health of the stage. Unless you are able to see trends and have goals, you will not be able to manage your funnel. Some critical metrics could be:
By tracking and understanding the time a lead spends in each stage, you can easily project out future revenue based on lead flow as well as identify leads that have become stalled and take action.
Each stage should have corrective actions you can take to fix problems. Depending on the feedback loop of metrics and customer interactions, you should have levels you can pull to control each stage. For example:
Probably most forgotten is that the definition of the stages needs to be agreed upon. If you are a marketing & sales department of one, you don't have to worry. If there is a sales team or other people involved, you need to make sure everyone agrees and understands the process.
Real-time visibility into the marketing funnel will allow you to quickly take corrective action and make accurate predictions of revenue, and stay on the same page with sales and the rest of the company.
Here is a template grid of a 3 step marketing funnel:
The marketing funnel is by no means perfect. People don't necessarily behave in a linear way in the real world. People will move backward, skip stages, and repeat stages over and over. The key is to understand how to set up and use this powerful tool.
It's true that marketing funnels can be satisfying, especially when all the leads are flowing through and producing revenue. But have you ever had a funnel cake?
Funnel cakes are made by pouring batter into hot cooking oil in a circular pattern and deep-frying until golden-brown. The batter is commonly poured through a funnel. Typically served with powdered sugar, but they can be eaten with jelly, cinnamon, chocolate, or fruit.
So, what's the difference between funnel cakes and fried dough, another carnival food favorite? They are both deep fried and served with powdered sugar, but fried dough is made with a portion of risen yeast dough instead of batter.
Whether you are a marketing team of one or of many, it's great to have you here. Thank you for joining me.
Marketing funnels are such a talked about topic. I hope this issue helped.
See you next week. Happy Scrappy Marketing!
P.S. Did you know you can see videos of many of the tools and tips discussed here? Subscribe to the Scrappy MarTech YouTube channel for new videos.