Marketing Funnels

What is a Marketing Funnel?

A mechanism for understanding where your prospective customers are in the buying cycle.

An Example: Buying a car

1. Needs Identification

2. Awareness

1. Needs Identification

3. Evaluation

4. Decision

5. Negotiation

6. Purchase

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The B-to-B Funnel

Awareness

Lead

Interest

Opportunity

Close

Social MediaBlog

PRDisplay

Paid SearchTrade Shows

Webinars

Web SiteLanding Pages

Micro SiteWhite PapersLead Form

TelemarketingSales Hand-off

Funnel Metrics that Matter

Key measurement points• Lead > Opportunity: How many leads are qualified

sales prospects• Opportunity > Close: How many qualified

opportunities are closing• Lead > Close: This is your key lead generation

metric!• Cost Per Lead/Opportunity/Close • Are your marketing programs profitable?

Funnel Volume• How many leads do you have to put into your funnel?• Go back to your metrics!• Example:

– Average Sale Price: $10,000– Revenue Goal: $500,000– Closed Deals: 50– Lead > Close Rate: 10%– You need 500 leads!

• Use your CPA to set your marketing budget.– If CPA is $20, you need a $10,000 marketing budget to meet your

goals.

How long is your funnel?

TI

ME

How broad is your funnel?Prospects

Funnel Leakage

Funnel Sources

Measure, measure, measure!– Where are your leads coming from?– Which leads cost the most?– Which leads are closing the largest deals? The most

deals?

Constantly measure the performance of your lead sources. Then, focus on what’ working best and ditch what’s not working well.

Managing your funnel with Sales“We generate all these great leads and sales is to incompetent to close them.”

“Our leads suck. I’d be crushing my quota of Marketing would give me better leads.”

Advanced Funnel Management

Finally…

Earn your seat at the table!– Know your performance metrics.– Sign up for measureable goals that are directly tied

to revenue.

Good marketing departments are a revenue center,

not a cost center!