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What is a Conversion Funnel? A Look at Each Stage

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What is a Conversion Funnel?


The conversion funnel is divided into four sections: awareness, interest, decision/desire, and action. Some models include an additional stage called advocacy.

1. Awareness

The first stage of the conversion funnel, the awareness stage, is where users are introduced to your product or service. 

Here is the progression of the Awareness stage of the funnel:

  • Out of all of the stages, the awareness stage attracts the largest number of users, as it is the first step in getting them to convert.

  • To effectively carry out the awareness stage, you need to correctly identify your target audience in order to create content relevant to them to hook them in.

  • From there, determine the channels where you are likely to receive the most traffic from your target audience and implement your strategies there.

Examples of channels used for this stage include content marketing, search engine optimization (SEO), advertising campaigns, and social media.

Consider Spotify, which is one of the most popular music and podcast streaming platforms.

Nowadays, it's difficult to meet someone who isn't aware of the streaming platform.

However, that doesn’t mean they don’t continue to invest in their own conversion funnels. 

Anytime you see billboards out in public or social media posts about people’s Spotify #Wrapped, this is you, the customer, participating in the Awareness stage of the conversion funnel.

2. Interest

In the Interest stage, users become more actively engaged with your product or service. 

By this point, a percentage of users from the previous stage will have already dropped off, leaving a narrower pool of potential customers.

For a successful Interest stage, the following points must be followed:

  • Nurture leads by providing compelling content that speaks directly to their needs and interests.

  • Examples of strategies to implement at this stage include blog posts, emails, webinars, video tutorials, and other forms of educational content.

One well-known example of the Interest stage that you may be familiar with is when you’re looking for a listing to book on AirBnb

When you browse through a listing and check out its photos and features, your Interest in booking the listing grows.

In this case, investing in detailed descriptions, high-quality photos, and user reviews helps foster that Interest in an effort to push the user to the next stage of the funnel.

By the end of this stage, users have a better understanding of your product or service and how it can help them.

Whether they decide to move forward with it, however, depends on the next stage in the funnel.

3. Decision/Desire

By this stage, your leads are well on their way to becoming full-on prospects for your brand.

Not only are they actively interested in your brand and what you're offering, but they are at the point where they are on the cusp of performing the conversion action.

Some key points about this stage to remember are:

  • This stage can be rather precarious, as one wrong move can mean losing out on the conversion. 

  • Because of this, it's important to implement strategies that help tip the customer toward the conversion action.

    Some strategies at this stage can include discount codes, social proof, product comparisons, and free trials.

HelloFresh, a premium meal kit delivery service, knows how to maximize the full use of the Decision/Desire stage of the conversion funnel. 

They offer multiple offers and discounts for anyone who is interested in trying out their services. 

When you click on their website, you'll find discounts of up to 55% for students and those they consider heroes, which are made up of medical professionals and veterans. 

Even if you don't fit into any of those categories, all you have to do is visit their Blog page, where all readers are eligible for a "Get 16 free meals + free shipping + 3 surprise gifts," which is a fantastic deal.

All of this is intended to entice potential subscribers to sign up for a plan, with the goal of converting them into full-time customers in the future.  

4. Action

Finally, the action stage is where users actively perform the desired conversion action.

This is often referred to as a "conversion event," and it can take many forms, such as: 

  • Signing up for an email list

  • Downloading an app or eBook

  • Placing an order on a website

  • Booking an appointment

While the Conversion stage is considered the final stage, you should not be complacent. Here are some key points to remember to ensure a successful Conversion stage:

  • This stage should also be designed with user convenience in mind.

  • If there are too many steps involved in getting from the decision stage to action, you may end up losing out on those conversions.

  • Make sure that your conversion process is easy and secure so that customers never hesitate to perform the final action. 

From the examples listed for the previous stages, the conversion stage takes the following forms:

  • Spotify: Conversion happens when a user signs up for a Spotify Premium subscription. 

  • AirBnb: A user chooses to book a listing through the Airbnb platform. 

  • HelloFresh: When a user signs up for a subscription plan. 

5. Advocacy (Optional Stage)

The advocacy stage is an optional step in the conversion funnel and is where customers become loyal advocates for your brand by referring others to your products or services.

This can be done through various channels, such as:

  • Word of mouth 

  • Online reviews

  • Social media sharing

In order to foster this type of customer engagement, you must first ensure that the customers are satisfied with their purchase experience. 

If not, they won't be motivated to refer your brand to anyone else.

Lokai, a brand that advocates for balance and different causes, is a good example of the Advocacy stage of the conversion funnel. 

With their referral program, existing customers can refer a friend, and you and your friend both get 20% off.

It's an excellent way to introduce new people to the brand while also benefiting from a great deal for both of you. 

The Importance of a Conversion Funnel In Marketing


A conversion funnel is an integral part of any digital marketing strategy. Here are some of the reasons why it is so important:

  • It allows you to track, measure, and optimize every step in the customer journey.

  • It also helps you identify bottlenecks or areas for improvement within your process so that you can fine-tune each stage to maximize conversions.

  • It also allows you to gain insights into customer behavior, preferences, and demographics so that you can better understand your target audience.

  • A conversion funnel helps you create content tailored specifically for each phase of the user's journey, ensuring that they have all the information and resources they need at every step of the way.

Decoding Conversion Funnel Stages


Here is a closer look at the different stages of the conversion funnel:

  • Awareness: In this stage, users are just being introduced to your brand and what you offer.

  • Interest: This is where users start to show an active level of interest in your products or services.

  • Decision/Desire: Your leads become prospects here as they decide if your product or service is right for them.

  • Action: This stage involves actually performing the desired conversion action.

  • Advocacy (Optional): Finally, this stage is optional and involves customers actively advocating for your brand by referring others to your products or services.

With a strong conversion funnel in place, you can maximize your ROI from digital marketing efforts and propel your business forward.

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