4 Easy Steps to Create an Effective Marketing Funnel to Maximize Your Startup’s Revenue


Startups with limited budgets need a strategic way to attract prospects, turn them into buyers, and retain them over time. An effective marketing funnel provides just that.

However, most startups are still underutilizing the power of this revenue-boosting tool. Some don’t know how to implement it; others think it’s too complicated because it sounds like it is.

The good news is — it doesn’t have to be! We’ll explain everything you need to know about marketing funnels in under 15 minutes of reading time, so you can create your first funnel and start reaping the benefits ASAP.

What Is A Marketing Funnel?

A marketing funnel is a model of your buyer’s journey. It represents the different stages that your audience goes through from first discovering your business to becoming loyal customers.

Marketing Funnel

Think of it as a funnel-shaped model, with the wide opening at the top symbolizing the initial awareness stage, and the narrow end at the bottom indicating the conversion stage. This represents what happens as your prospects progress through the funnel – the number of people naturally decreases, but the quality of leads tends to improve.

Funnel-shaped model

As shown in this image, most marketers agree that the buyer’s journey consists of three stages:

  • Awareness
  • Consideration
  • Conversion

These stages also align with the classic AIDA model (Attention, Interest, Desire, Action).

Some marketers also consider the following two stages to be an important part of the buyer’s journey:

  • Loyalty
  • Advocacy

Regardless of how many stages you think your buyers go through—or how many checkpoints you want to monitor—each of them can be linked to the three stages of a typical marketing funnel:

  • Top of the funnel (TOFU) – awareness
  • Middle of the funnel (MOFU) — consideration
  • Bottom of the funnel (BOFU) – conversion, loyalty, advocacy.

We’ll discuss each of these stages in more depth in a minute. For now, just note that marketing funnels aren’t rigid blueprints, but rather flexible guides that you can adapt for your startup, goals, and customer base.

What Are The Benefits Of A Marketing Funnel?

Marketing funnels can help you navigate complex and, often, non-linear customer journeys.

Here are some of the more specific key advantages of implementing a marketing funnel strategy:

  • Comprehensive Customer Engagement. Marketing funnels allow you to reach potential customers at every stage of their journey and, consequently, build stronger relationships and drive more conversions.
  • Lead Generation and Nurturing. Funnels let you attract new leads through targeted campaigns during the awareness and consideration phases, and turn them into loyal buyers and brand advocates later.
  • Insights and Optimization. Funnel reports can give you valuable data and help you identify where customers drop off more easily. This insight is crucial in plugging any leaks that may cause you to lose potential customers. By analyzing the data, you can refine your onboarding process, adjust your targeting, and improve conversions.
  • Channel and Content Performance. Marketing funnels also let you track the effectiveness of different channels, tactics, and content at each stage, which can help you allocate resources more effectively and maximize your marketing efforts.
  • Adaptability and Customization. Marketing funnels are very flexible and can be tailored to your specific business needs and customer base. Whether you’re a SaaS or an eCommerce startup, you can customize each funnel stage for your unique customer journey.

In a nutshell, marketing funnels help startups navigate the complexities of the digital landscape, optimize their customer acquisition and retention strategies, and ultimately drive business growth.

Different Types Of Marketing Funnels

Some marketers categorize marketing funnels into different types based on their key goals. Here are some you may consider using for your startup:

  • Lead Generation Funnel. This funnel focuses on capturing leads and expanding your customer base. It typically involves offering valuable content or incentives in exchange for contact information, such as email addresses. The goal is to nurture these leads and guide them toward conversion.
  • Sales Funnel. A sales funnel is designed to guide prospects through the purchasing process. It starts with creating awareness, generating interest, and ultimately driving the prospect to make a purchase. The funnel may include steps like product demonstrations, customer testimonials, and personalized offers to encourage conversions.
  • Membership Funnel. Membership funnels are similar to sales funnels, but they put more focus on retaining customers over time. They may use tactics like providing exclusive content or offering special perks to older customers.
  • Product Launch Funnel. Product launch funnels can also be considered a subtype of sales funnels, but they’re specifically used to generate excitement around a new product or service. They typically involve creating anticipation through pre-launch content, building a waitlist, and then launching with a compelling offer.
  • Upsell/Cross-sell Funnel. This type of funnel targets existing customers to increase their average transaction value. By presenting relevant upsell or cross-sell offers after a customer has made a purchase, you can encourage them to buy additional products or upgrade their current purchase.

Some marketers also differentiate between different marketing funnel types based on their format. Here are a few examples of format-based funnel types:

  • Email funnels
  • Webinar funnels
  • Video funnels
  • Live demo funnels

Note that funnels may include several different content formats. For example, a webinar funnel may build awareness through webinars, but further nurture leads through emails.

The 3 Stages Of A Marketing Funnel

Marketing funnels are usually considered to have three stages: top, middle, and bottom. Let’s go through them one by one in more depth.

1. Top Of The Funnel (TOFU)

Top-of-the-funnel (TOFU) content is designed to create awareness about:

  • Your brand,
  • Your products or services, and
  • How your products or services can help or benefit them.

Here are a few examples of effective TOFU content for different marketing funnel types:

  • Informative blog posts that address common pain points or provide valuable insights about a specific industry or niche (e.g., “Tips for Getting Better Sleep,” or “How to Create an Effective Marketing Funnel”)
  • Infographics that highlight the benefits of a specific product or showcase interesting statistics related to a particular industry
  • Social media posts, such as behind-the-scenes snapshots of your business, or short videos that showcase the unique features of your product
  • Videos, such as video tutorials on how to use a specific product or product feature
  • eBooks or whitepapers that provide in-depth knowledge on a specific topic related to a particular industry.

2. Middle Of The Funnel (MOFU)

The middle of the funnel (MOFU) marks a stage at which prospects have moved beyond the awareness phase and are now considering their options.

At this point, they are actively seeking more information and evaluating different solutions. Your goal is to nurture these leads and guide them toward making a decision in your favor.

Here are examples of effective MOFU content:

  • Comparison guides or case studies that highlight the unique selling points of your product or service compared to competitors
  • Webinars or live demos that provide a deeper understanding of how your product works and its benefits
  • Email drip campaigns that deliver targeted content and testimonials to build trust and address common objections
  • Interactive quizzes or assessments that help prospects assess their needs and identify the best solution
  • Free trials or samples that allow prospects to experience your product or service firsthand

The key here is to provide valuable, targeted content that helps prospects make informed decisions and positions your offering as the best choice.

3. Bottom Of The Funnel (BOFU)

The bottom of the funnel (BOFU) marks the final stage of the buyer’s journey.

Your prospects are now ready to make a purchase decision, so your job is to convert them into paying customers and maximize the value of their purchases.

Examples of effective BOFU content include:

  • Personalized product demonstrations or consultations tailored to the specific needs of the prospect
  • Limited-time offers or discounts that create a sense of urgency and incentivize immediate action
  • Customer success stories and testimonials that showcase the positive outcomes achieved by existing customers
  • Free trials or money-back guarantees that reduce the perceived risk of making a purchase
  • Direct sales calls or consultations to address any remaining concerns and guide prospects toward making a confident decision

At this stage, your content should be persuasive, addressing any final objections and providing the necessary push to convert prospects into loyal customers.

The next section will help you tailor your content to each marketing funnel stage.

Example Of A Three-Stage Marketing Funnel

Let’s exemplify what a buyer’s journey may look like by imagining you’re a startup selling AI software for SEO.

At the awareness stage, the buyer realizes they need to improve their website’s traffic and is exploring potential solutions.

  • The buyer is conducting online research on traffic best practices, reading blog articles or industry publications, and looking for information on how AI can enhance traffic.
  • They are realizing the importance of SEO for their website traffic and are trying to understand how AI software can help them automate SEO processes or drive better results.

During the consideration stage, the buyer has narrowed down their options and is evaluating different solutions.

  • The buyer is comparing various AI software providers, reading reviews, and exploring case studies or success stories.
  • They might also be attending webinars or demos to gain a deeper understanding of how AI works.
  • They’re considering the features, functionality, and pricing of different AI solutions, assessing how these solutions align with their goals and integration capabilities, and looking for evidence of successful outcomes.

At the decision stage, the buyer is ready to make a final decision and convert into a paying customer.

  • The buyer may request a personalized demo or trial or engage directly with the sales team to address any remaining questions or concerns.
  • They may still be considering factors such as pricing, implementation process, training, and long-term benefits.
  • Finally, the buyer proceeds to make a purchase or sign a contract.
The Potential Buyers Journey of Billy Blogger

Important Marketing Funnel Metrics You Should Track

Let’s take a closer look at the important marketing funnel metrics you may want to track at each stage.

Top of the Funnel (TOFU) Metrics:

  • Website Traffic. The number of your website visitors indicates the level of awareness your brand and content are generating. Track your website traffic using tools like Google Analytics to understand which sources are driving the most visitors.
  • Pageviews and Time on Page. Keep an eye on the number of page views for your TOFU content and the average time visitors spend on those pages. This will give you insights into the engagement level of your content.
  • Social Media Engagement. Measure the engagement metrics on your social media platforms, such as likes, shares, comments, and click-through rates, to understand if your content resonates with your target audience.
  • Click-Through Rate (CTR). Whether it’s for your blog posts, infographics, or videos, CTR indicates how compelling your content is to your audience. Monitor this metric to assess the success of your headlines and calls to action.
  • Lead Generation. While not all top-of-the-funnel content is designed for lead generation, some elements might encourage visitors to provide their email addresses or subscribe to your newsletter. Keep an eye on the number of leads generated from TOFU content.

Middle of the Funnel (MOFU) Metrics:

  • Lead Nurturing Conversion Rate. Track the percentage of leads that move from the TOFU stage to the MOFU stage. This metric will help you understand how effective your lead nurturing efforts are in guiding prospects further down the funnel.
  • Content Consumption. Analyze how much content your leads are consuming during the MOFU stage. Keep an eye on the number of downloads, webinar attendees, and email open rates to measure engagement.
  • Lead Quality. Consider tracking the quality of leads entering the MOFU stage. Metrics like job titles, company size, and engagement levels can help you determine if the leads align with your target audience.
  • Sales-Qualified Leads (SQLs). Identify how many of your leads have progressed to a stage where they are considered sales-ready. This will help your sales team focus on leads with the highest potential to convert.

Bottom of the Funnel (BOFU) Metrics:

  • Conversion Rate. The most crucial metric at the BOFU stage is the conversion rate—the percentage of leads that become paying customers. This metric directly reflects the success of your marketing efforts.
  • Customer Acquisition Cost (CAC). Calculate how much you’re spending on marketing and sales needed to acquire new customers in order to assess the cost-effectiveness of your marketing funnel.
  • Customer Retention Rate. Measure your customer retention rate to gauge the effectiveness of your post-purchase strategies.
  • Average Deal Size. The average value of your customer transactions can help you make strategic decisions regarding pricing and product offerings.
  • Customer Lifetime Value (CLV). Calculate the projected revenue from a customer over their lifetime with your business. High CLV indicates strong customer loyalty and a successful funnel.

Remember that marketing funnel metrics should be analyzed collectively, not in isolation. By combining these metrics, you can gain a comprehensive understanding of your marketing funnel’s performance, identify pain points, and fine-tune your strategies for optimum results.

For those interested, I’ve crafted a template that can guide you through this process, which you can access here.

How To Create An Effective Marketing Funnel For Your Startup

Creating an effective marketing funnel can be split into four easy steps: mapping out your ideal buyer journey, setting goals for each funnel stage, planning content for each stage, and measuring your results.

1. Map Out Ideal Buyer Journey

Start by mapping out your ideal buyer journey – the path that your potential customers take from the first touchpoint to conversion. Here’s how to do it:

  • Analyze your current buyer’s journey. Review your existing customer data and identify the typical steps your customers go through before making a purchase.
  • Visualize your funnel. Once you have a clear understanding of your buyer journey, map it out as a visual funnel. This visualization will help you visualize the stages, track progress, and ensure a smooth transition from one stage to the next.

2. Set Goals For Each Funnel Stage

To make your marketing funnel effective, it’s crucial to set specific goals for each stage of the funnel. Here’s how you can approach it:

  • Top of the funnel (TOFU): Determine goals related to attracting and engaging a larger audience. This could include increasing website traffic, growing social media followers, or boosting brand awareness.
  • Middle of the funnel (MOFU): Set goals that focus on nurturing and building relationships with your prospects. This may involve increasing email subscriptions, improving engagement rates, or driving more qualified leads.
  • Bottom of the funnel (BOFU): Define goals that revolve around conversions and driving sales. This could include increasing the conversion rate, maximizing average order value, or improving customer retention.

At this stage, you also want to decide which metrics you’ll track to measure your success in each area.

3. Plan Content For Each Funnel Stage

Developing a strategic content plan for each stage of the funnel is an essential part of making the most out of your marketing efforts.

Let’s dive into how you can plan your content to engage prospects and guide them seamlessly through the buyer’s journey:

  • Top of the Funnel (TOFU): At this stage, focus on building brand and product awareness. Leverage visually engaging content that captures attention and introduces your company and brand story. Consider incorporating videos, eye-catching blog posts, and social media content to spark curiosity and create a positive first impression.
  • Middle of the Funnel (MOFU): In the middle stage, the goal is to gain trust and demonstrate how your offerings can meet your customers’ needs. So, you should create content that showcases your expertise and addresses common pain points. Consider producing case studies, video tutorials, downloadable resources, and in-depth guides that give your prospects the information they need to make informed decisions.
  • Bottom of the Funnel (BOFU): As prospects reach the bottom of the funnel, it’s time to motivate them to take action. Provide compelling reasons to buy, sign up, or engage with your brand. Offer free trials, actionable emails, and strong calls to action (CTAs) that encourage conversion. Personalized demos, limited-time offers, or exclusive discounts can also help tip the scale in your favor.

Remember, while planning your content, maintain a consistent brand voice and messaging across all stages. Tailor the content format and delivery to match the preferences of your target audience, whether it’s through blog posts, videos, social media, or email campaigns.

4. Measure Your Success

All that’s left to do is decide which metrics to track in order to measure your results, monitor them, and, ideally, compare them over time.

If you don’t know where to start, here are a few ideas on which metrics to track depending on your goals and different funnel stages:

Top of the funnel (TOFU) metrics

  • If your goal was to increase website traffic, measure the total number of website visitors and unique visitors.
  • If your goal was to increase brand awareness on social media platforms, monitor brand mentions and post reach.

Middle of the funnel (MOFU) metrics

  • If your goal was to get more subscribers, monitor your list growth and sign-ups.
  • If your goal was to increase social media engagement, track the number of followers, likes, comments, shares, and click-through rates on social media platforms.

Bottom of the funnel (BOFU) metrics

  • If your goal was to increase purchases, measure the total number of purchases as well as the percentage of leads that convert into paying customers.
  • If your goal was to increase customer lifetime value, track the average order value or repeat purchase rate.
  • If your goal was to increase customer retention, monitor customer churn rates, repeat purchase rates, and customer satisfaction metrics.

If you’re not happy with your results, don’t be discouraged. Use metrics as learning tools to better optimize your marketing funnel strategy in the future.

Tips To Help You Convert Leads In Your Funnel

Here are a few more tips that will help you make your marketing funnels successful and turn more hard-earned leads into paying customers.

  • Craft Persuasive CTAs. Create compelling, action-oriented CTAs that prompt your leads to take the next step. Use language that instills a sense of urgency and highlights the benefits of acting promptly.
  • Offer Personalized Demos. Offer product demonstrations that address the specific needs and pain points of your leads and showcase how your solution meets their unique requirements.
  • Provide Limited-Time Offers. Motivate hesitant leads to take quick action with time-sensitive offers or exclusive discounts.
  • Leverage Customer Testimonials. Display positive customer reviews and success stories to build trust.
  • Optimize Checkout Process. Streamline your checkout process to make it quick and hassle-free. Eliminate unnecessary steps and reduce form fields to minimize friction during the conversion.
  • Send Actionable Emails. Craft emails with clear instructions and direct links to conversion points, so your leads can easily take action directly from their inbox.
  • Offer Free Trials or Samples. Allow leads to experience your product or service risk-free. Free trials can remove barriers to conversion and help prospects understand the value of your offering.
  • Address Objections. Anticipate common objections and address them in your content. Overcome doubts and concerns by providing useful information.
  • Implement Remarketing Strategies. Use remarketing ads to re-engage leads who didn’t convert initially. Stay top-of-mind and entice them back into your funnel with relevant offers.
  • Create Personalized Content. Segment your audience and deliver content tailored to their interests and preferences. Personalization can enhance engagement and increase the chances of conversion.

Key Takeaways

Here’s a quick summary of our main points:

  • Marketing funnels represent the buyer’s journey and help you guide prospects throughout the buying process.
  • They consist of three stages: top, middle, and bottom of the funnel. These stages align with the buyer’s awareness, consideration, and action phases.
  • Top-of-the-funnel content should make your prospect aware of your brand, products or services, and the problem you help them solve.
  • Middle-of-the-funnel content should help you stand out from other brands and position yourself as the best choice during the buyer’s consideration phase.
  • Bottom-of-the-funnel content is the most vital part of this marketing strategy, as its job is to convince the buyer to take your desired action.
  • Some marketers differentiate between different types of marketing funnels based on different objectives and content formats.
  • To create an effective marketing funnel, make sure to map out your buyer’s journey, set goals and plan content for each stage, and perform monthly evaluation reviews of your metrics and budget allocation.

Final Words

Now that you know how to create an effective marketing funnel, it’s time to put the theory into practice! Simply select your funnel format of choice–such as email, webinar, or live demo funnels–and get to work.

Remember: you don’t have to make it perfect on your first try. Just focus on monitoring your results, gathering feedback, and optimizing your strategy over time.

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About the author: Dina Šoštarec

Dina is a versatile SEO writer with expertise in marketing, tech, and personal development. With agency experience at LeadSpring and CopySmiths, she empowers B2B entrepreneurs worldwide while embracing a nomadic lifestyle. Her adaptable skills and global perspective ensure exceptional results in crafting captivating content and optimizing online presence.

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