Digital Sales Funnel
Introduction
A digital sales funnel is a step-by-step picture of the path a potential customer takes from finding your brand online for the first time to buying something and, often, becoming a loyal supporter or promoter. For digital marketing and conversion improvement to be effective, you need to know how the digital sales funnel works.
While different sources use slightly different labels, the most commonly recognized stages are
1. Awareness
- First, the customer becomes aware of your brand, typically via digital ads, social media, search engines, blog posts, or referrals.
- Goal: Attract attention and introduce your offer or solution clearly.
- Metrics: Page views, impressions, new visitors, reach.
2. Interest
- Prospects engage further—reading blog articles, exploring your website, subscribing to emails, or following on social.
- Goal: Educate and build interest, showing how you can solve their problem.
- Metrics: Time on site, engagement rates, email signups.
3. Consideration
- Prospects are actively evaluating your options. They read reviews, compare with competitors, download resources, or join webinars.
- Goal: Demonstrate value and build trust.
- Metrics: Downloads, product page visits, demo requests, social follows.
4. Conversion
- The decision point occurs when a lead becomes a customer, which happens when they purchase, submit a form, or take another action.
- Goal: Make conversion frictionless—clear calls to action, secure checkout, strong offers.
- Metrics: Conversion rate, sales, leads captured.
5. Retention/Loyalty (Advocacy)
- After purchase, the focus shifts to retaining and delighting customers for repeat business and encouraging them to refer others.
- Tactics include loyalty programs, personalized recommendations, follow-up emails, and customer support.
- Metrics: Repeat purchase rate, customer lifetime value, referrals, reviews.
Key Stages of the Digital Sales Funnel
While different sources use slightly different labels, the most commonly recognized stages are
|
Stage |
Alternate Names |
What Happens |
|---|---|---|
|
Awareness |
Discovery, Top of Funnel (TOFU) |
Potential customers first learn about your brand/solution. |
|
Interest |
Discovery, Consideration |
Prospects engage and show curiosity—skimming content, learning. |
|
Consideration |
Appraisal, Evaluation |
Prospects compare you to other options and do deeper research. |
|
Conversion |
Action, Decision, Bottom Funnel |
Prospects complete the desired action—purchase, book, or sign up. |
|
Retention/Loyalty |
Advocacy/Post-Sale |
Existing customers are nurtured through repeat business & referrals. |
Example Funnel Journey
- A potential customer sees your ad on Instagram (Awareness)
- Clicks to your website and reads a blog post (Interest)
- Signs up for your webinar or downloads a guide (Consideration)
- Receives a follow-up offer and makes a purchase (Conversion)
- Joins your loyalty program or refers a friend (Retention/Advocacy)
An effective digital sales funnel combines content (blog posts, case studies), advertising (social, search), email nurturing, and conversion optimization at every stage, ensuring prospects move smoothly towards the desired action and become long-term, loyal customers.
