What is a Customer Funnel?

A customer funnel is the path that customers go through when buying a product or service. In simple terms it describes the customer journey. It is a visual layout of the path customers endure. The customer funnel is built like a funnel for a specific reason. It starts big at the top then gets smaller and the customer journey is similar. A lot of potential customers may see your product or service and be intrigued but in the end not actually end up buying it. That is why the top is bigger and the bottom is smaller.

Why is it Important?

The customer funnel makes it easier for companies to follow the customers’ journey. It brings visibility to each stage allowing you to further connect with your customer. You can enter the mind of the customer and know what they are thinking. A big bonus of the customer funnel is that it lets you know where you are losing customers. You know this based on what stage the customers fall out of and what you need to improve on. For example, if you lose customers in the second stage you need a better brand awareness. 

How to Build a Customer Funnel

There are five sections in the customer funnel: attention, interest, desire, and action.

  1. Attention: This is when a potential customer becomes aware of your product or service. It can be an ad, a post on social media, or from word of mouth. Your content is meant to grab the attention of your target customer.
  2. Interest: The interest stage is where customers’ attention has been captured and they want to know more about your brand. Customers believe there is a problem that your product or service can solve. The peak of interest makes the potential customer want to learn more.
  3. Desire: This is the emotional connection and where the potential customer decides they want the product or service. There is a silent aspect of trust here between the company and the customer. The customer has to trust the company. The more they interact with the company the more trust they will have further leading to a purchase. 
  4. Action: This is where the potential customer becomes a customer. They have made the decision to purchase your product or service. Most of the time there is a positive experience involved, and depending on how great it is the customer may even become a returning customer.

Levels of Awareness

There are different levels of awareness of a product that a potential customer goes through before actually buying a product or service. There are five different levels of awareness. They are: unaware, problem aware, solution aware, product aware, and full aware. The goal here is to guide your undiance from unaware and unhappy to fully aware and happy.

Unaware

Unaware are people who don’t know they have a problem and are unaware that a better way may exist. This is especially true in new markets where the product or service is unlike anything that has been created before. 

Problem Aware

This is when the prospect knows a problem exists but does not know of any current solutions. The problem may be fully understood or not, it depends on the situation at hand. 

Solution Aware

Solution Aware is when the people know of potential solutions, but not specific products or services. In simple terms they are not aware of what you may offer, especially if you are not a big brand company.

Product Aware

This is where the prospect is aware of your specific product or service, but they are not yet sure if they will choose you over your competitors. These potential customers may be overwhelmed by all the choices and need to figure out the pros and cons of each. 

Full Aware

These are your loyal customers. Through their journey the customers believed you were the best out of your competitors. They love your product so much they continuously come back.

Previous Chapter

How to Find Product-Market Fit

What is Product-Market Fit? Product market-fit is one of the first steps in creating a successful business. The goal of

Next Chapter

How To Build A Customer Funnel

Take your startup idea to the next level!

Subscribe to the Startup Wars newsletter to receive free resources for starting your company, delivered right to your inbox.