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Home » Blog » Growth Strategies

Marketing Funnel Explained: Definition, Stages, and Examples

Kevin Nguyen by Kevin Nguyen
Sep 2025
marketing funnel thumbnail

A marketing funnel is one of the most powerful tools to turn potential customers into loyal ones. It maps out the entire journey, showing how people move from first hearing about your brand to making a purchase and beyond.

In this guide, you’ll find details on stages of the marketing funnel, case studies, and strategies you can apply right away. But before jumping into the details, here are some key takeaways.  

Key takeaways

  • A marketing funnel is a visual roadmap that potential customers go through from discovering your brand to making a purchase and becoming advocates.
  • The funnel consists of 4 stages including awareness, consideration, conversion and loyalty.
  • Not all companies’ marketing funnels will have fixed levels or stages. It’s vary in size and shape from company to company and industry to industry.
  • The funnel narrows as customers move through it because fewer prospects advance to the next stage.  
  • What is a Marketing Funnel?

    A marketing funnel is a visual roadmap that potential customers go through from discovering your brand to making a purchase and becoming advocates.

    In other words, it helps businesses understand and map out this journey so they can tailor marketing efforts to meet customer needs at each stage.

    Moreover, by identifying where prospects drop off, businesses can refine their strategies and therefore boost conversions. This is particularly important today, as consumers interact with brands across multiple channels and touchpoints throughout their buying journey.

    While various models exist, a common structure includes:

    • Awareness (Top of Funnel – TOFU)
    • Consideration/Interest (Middle of Funnel – MOFU)
    • Conversion (Bottom of Funnel – BOFU)
    • Loyalty/Advocacy (Post-Conversion)

    Marketing funnel vs sales funnel  

    While A marketing funnel is all about attracting people, teaching them about your brand, and building trust until they’re ready to buy, a sales funnel starts once those people are interested enough to be called leads.  

    A sales funnel is the process that focuses on converting qualified leads into customers through direct engagement, negotiation, and closing sales. It represents the steps a sales team takes to move prospects through to a decision and purchase.

    Here’s a comparison of the digital marketing funnel and sales funnel across key aspects:  

    Aspect

    Marketing funnel

    Sales funnel

    Purpose

    Attracts and nurtures potential customers

    Converts leads into paying customers

    Focus

    Brand awareness, engagement, lead generation

    Sales conversions, customer decision-making

    Stages

    Awareness → Consideration 

    → Conversion → Loyalty

    Awareness -> Interest -> Decision

    -> Intent -> Evaluation and action 

    -> Loyalty and retention

    Customer interaction

    Minimal or indirect until later stages

    High and direct contact, personalized communication

    Key activities

    Content marketing, ads, social media, SEO, email campaigns

    Sales calls, demos, negotiations, follow-upsKey metrics

    Key metrics

    Impressions, reach, leads, click-through rate, conversion rate

    Qualified leads, conversion rate (lead to sale), closed deals

    Tools

    SEO tools, content platforms, ad networks

    CRM, sales automation, demos, and direct communication tools

    Outcome

    Generate leads and build brand interest

    Close sales and manage customer relationships

    Relationship to each other

    Marketing generates leads that feed into the sales funnel

    Sales funnel converts those leads into customers

    Key takeaways

    The marketing funnel builds awareness and generates leads through broad, content-driven activities. The sales funnel then engages these leads directly, guiding them through negotiation and purchase to close sales. Marketing focuses on content and data, while sales focuses on personal interaction and deal-closing.

    Along with other strategies to grow your brand, don’t miss this Cross-Promotion: Strategies, Types, and Real Examples (2025)

    Compare B2B vs B2C marketing funnel 

    After differentiating between marketing and sales funnels, it is helpful to see how marketing funnels differ by business type. Specifically, B2B (business-to-business) and B2C  (business-to-consumer) audiences behave differently.

    Below’s a comparison of B2B vs B2C marketing funnel highlighting their differences:

    Aspect

    B2B 

    B2C

    Buying cycle length

    Longer, weeks to months, multiple touchpoints needed

    Shorter, minutes to hours, fast buying decisions

    Decision-makers

    Multiple stakeholders and decision-makers are involved

    Individual buyers or small personal influence (family, friends)

    Content strategy

    Focus on educational content, including whitepapers, case studies, and reports

    Focus on engaging content such as videos, social media, and influencer marketing

    Sales approach

    Relationship-driven: email, networking, 1-on-1 communication

    Automated: ads, flash sales, influencer marketing

    Customer retention

    Long-term focus: support, account management

    Incentives-driven: loyalty programs, discounts

    Conversion focus

    Demonstrates ROI, builds trust with the ability to solve problems

    Emotional appeal, impulse buying, strong brand presence

    Funnel complexity

    More complex with multiple stages due to team involvement

    Simpler, direct path to purchase

    Lead nurturing

    Extended nurturing with personalized outreach

    Quick engagement and prompt calls to action

    Key takeaways

    B2B marketing funnel are longer, more personalized, and education-based to accommodate a complex buying process with multiple stakeholders. In contrast, B2C funnel focus on quick, emotion-driven conversions and mass outreach with simpler paths to purchase.  

    Why Should You Use a Marketing Funnel?  

    A marketing funnel is essential because it helps you reach the right people, use your resources effectively, and build long-term customer loyalty.

    Using this funnel helps you attract the right audience, guide them through their decision-making process, and turn them into loyal customers. It gives you a structured view of the customer journey so you can deliver the right message at the right time, reducing drop-offs and increasing conversions.

    A funnel also ensures your resources are spent wisely. By pinpointing where prospects are most likely to lose interest, or where they’re closest to buying, you can focus your efforts where they’ll have the biggest impact, maximizing return on investment.

    Beyond driving sales, a digital marketing funnel also builds stronger customer relationships. With the right nurturing, you can encourage repeat purchases, foster loyalty, and even turn happy customers into advocates for your brand.

    4 Key Stages of a Marketing Funnel

    A marketing funnel guides potential customers through a clear journey, from first discovering your brand to becoming loyal advocates. Let’s break down the four key marketing funnel stages and its goals.

    marketing funnel 2

    Awareness stage

    The Awareness stage is the top of the funnel (TOFU), where the goal is to attract as many relevant prospects as possible by introducing them to your brand, product, or service.

    At this awareness stage, potential customers may not know they have a problem or need your solution, so the focus is on visibility and creating a strong first impression.

    Example: On this first stage, a fitness brand posts a 30-second TikTok video showing a person using their smart fitness tracker to monitor heart rate during a workout. The video goes viral, reaching 50,000 viewers and introducing the brand to potential customers.

    Key strategies you can apply during the awareness stage:

    • Create high-value, accessible content like blog posts, videos, or infographics that address common pain points or interests.
    • Optimize for SEO to rank higher on search engines.
    • Run social media campaigns with engaging posts, stories, or reels, using both organic reach and paid ads such as Facebook Ads
    • Engage in public relations efforts, such as press releases or guest appearances on podcasts, to boost brand visibility.

    Key metrics to track: Website traffic (unique visitors), social media impressions and reach, ad click-through rates (CTR), brand mentions or shares.

    Combine organic and paid tactics to reach new audiences, explore more practical ideas in How to Promote Your Business: 29 Free & Paid Strategies.  

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    Consideration stage

    The next stage on the online marketing funnel is the consideration stage.

    This stage is when prospects are actively comparing your product or service with other options. They already understand their problem and are exploring solutions, so your goal is to show that your offering is the best fit.

    At this stage, it’s important to build trust and provide clear evidence that your product or service effectively solves their problem.

    Example: Imagine this, the business selling handcrafted leather notebooks displays a customer review on their website from a writer who loves the notebook’s premium feel and long-lasting leather cover. A potential buyer reads the review while comparing it to cheaper notebooks.

    Key strategies you can apply during the consideration stage:

    • Share real-world success stories or customer reviews that highlight measurable results.
    • Offer free trials, live demos, or interactive walkthroughs to let prospects experience your product firsthand.
    • Use pixel-based retargeting to serve ads to website visitors who didn’t convert, reminding them of your value proposition.
    • Create content like “Our Product vs. Competitors” guides or videos to address objections and showcase advantages.
    • Send tailored emails or messages addressing specific pain points or questions prospects may have.

    Key metrics to track: Engagement with case studies or demo videos, such as content downloads, free trial sign-ups, or demo bookings, retargeting ad conversions.  

    Conversion stage  

    The Conversion stage is where prospects become paying customers. At this point, your goal is to make the buying process as smooth and persuasive as possible by removing obstacles and offering incentives.

    This means you should focus on helping your prospects complete their purchase with confidence and ease.  

    For example, imagine an online clothing retailer launching a new line of sustainable dresses. The landing page highlights a clear “Shop Now” button, showcases customer reviews, and offers a 15% discount pop-up for first-time buyers.

    A visitor adds a dress to their cart but leaves the site. Later, they receive a cart abandonment email with a 24-hour discount code, which encourages them to complete the purchase.

    Here are some strategies you can apply during the conversion stage:

    • Design optimized landing pages with clear calls-to-action (CTAs), trust signals like reviews, and minimal distractions.
    • Introduce limited-time offers, discounts, or exclusive bonuses to encourage immediate action.
    • Simplify the checkout process with minimal steps, guest checkout options, and multiple payment methods.
    • Send automated emails or SMS reminders to prospects who added items to their cart but didn’t complete the purchase.
    • Suggest complementary products or upgrades during the checkout process to increase average order value.

    Key metrics to track: Conversion rate (percentage of visitors who purchase), average order value, cart abandonment rate, and revenue per visitor.

    Loyalty stage

    The loyalty stage is where the focus shifts to transforming one-time buyers into repeat customers and brand advocates. 

    The primary goal of this stage is to foster long-term customer retention, build strong relationships, and encourage advocacy by delivering exceptional post-purchase experiences and maintaining consistent engagement.

    This ensures customers remain satisfied, return for future purchases, and promote your brand to others, amplifying your reach and reputation.

    For instance, a coffee subscription service sends a personalized thank-you email to a customer after their first order, including a brewing guide and an invitation to join a loyalty program where they earn points for every purchase.

    After three orders, the customer redeems points for a free coffee sample and shares a photo of their morning brew on Instagram with the brand’s hashtag, #BrewWithUs, which gets featured on the brand’s official page.

    Here are some strategies you can apply during the loyalty stage:  

    • Ensure the purchase process is smooth, with clear communication about order confirmation, shipping updates, and delivery timelines.
    • Deliver on promises by providing high-quality products or services that meet or exceed customer expectations.
    • Develop ongoing email sequences that offer value, such as exclusive content, product tips, or updates about new features or offerings.
    • Do post-purchase follow-up by ending personalized thank-you emails, requesting feedback, etc, to keep your brand top of mind.
    • Implement rewards programs, such as points-based systems or tiered memberships.
    • Provide responsive, empathetic customer service through multiple channels (e.g., live chat, email, phone)

    Key metrics to track: Customer retention rate, repeat purchase rate, customer lifetime value, customer satisfaction score.


    Marketing Funnel Case Study

    To see how the marketing funnel works in practice, let’s look at real brands that guide their customers from awareness to loyalty. These case studies show how various strategies at each stage can attract, convert, and retain loyal customers.

    Nike 

    Nike just do it campaign

    Nike builds brand recognition through iconic campaigns like “Just Do It” and athlete partnerships that sell a lifestyle, not just products. At the same time, it provides value with workout guides, blogs, and the Nike Training Club app—keeping audiences engaged and positioning itself as a trusted fitness authority.

    When prospects are comparing options, Nike supports their decision-making with detailed product information, athlete endorsements, and customer reviews. Features like product customization and filters by sport or activity help users find the perfect fit.

    To drive purchases, Nike removes friction with free shipping, exclusive offers, and a streamlined checkout process. Targeted email campaigns add urgency with limited-time deals and product launches.

    Post-purchase, Nike strengthens loyalty through its membership program, early access to new releases, event invitations, and personalized content delivered via apps, email, and push notifications.

    AirBnB

    airbnb

    Airbnb builds global recognition through storytelling, influencer partnerships, and social sharing. The brand highlights real travel experiences and hosting success to inspire both guests and hosts.

    Moving into the consideration stage, the focus shifts to trust. Guests gain confidence through reviews, high-quality photos, and direct messaging with hosts, while hosts benefit from pricing tools, protection plans, and onboarding guides. Testimonials from both sides further strengthen credibility.

    During the conversion stage, Airbnb makes the booking process smooth and compelling. Users can rely on smart filters, flexible payment options, and retargeting ads to complete their reservations with ease.

    Finally, Airbnb works to keep users engaged and loyal. Personalized travel ideas, referral rewards, and consistent post-booking communication encourage both travelers and hosts to return for future experiences.

    Spotify

    spotify

    In the awareness stage, Spotify reaches new audiences through social media campaigns, influencer partnerships, and collaborations with artists. Memorable ads, like “Wrapped,” spark curiosity and encourage people to share their listening habits online.

    During the consideration stage, Spotify positions itself as the best option by offering personalized playlists, free trials, and side-by-side comparisons with competitors. User reviews, recommendations, and artist-curated playlists further build trust and interest.

    At the conversion stage, Spotify encourages users to upgrade from the free plan to Premium. It removes friction with flexible pricing, student discounts, family plans, and limited-time offers that make subscribing easy and appealing.

    Finally, in the loyalty stage, Spotify strengthens loyalty through features like Spotify Wrapped, personalized playlists, and exclusive early access to music or podcasts. Push notifications, emails, and AI-driven recommendations keep users engaged and less likely to churn.


    Marketing Funnel Explained: FAQs

    How do I create a marketing funnel?

    To create a marketing funnel, follow these key steps:
    1. Identify your audience: Understand your target audience’s demographics, behaviors, and preferences to tailor your marketing efforts effectively.
    2. Set objectives: Define specific, measurable, and achievable marketing goals aligned with your business.
    3. Choose channels: Select marketing channels where your target audience is most active.
    4. Create content: Develop compelling content for each stage of the funnel that addresses audience needs and guides their decision-making.
    5. Measure and optimize: Continuously analyze funnel performance and refine your strategies for better results.

    What are the 4 stages of the marketing funnel?

    The four common stages of the marketing funnel are Awareness, Consideration, Conversion, and Loyalty. These stages represent a customer’s journey, starting with their discovery of a brand (Awareness), moving to evaluating options (Consideration), making a purchase (Conversion), and finally becoming a repeat, dedicated customer (Loyalty).

    What is an example of a marketing funnel?

    An example of a marketing funnel is Spotify’s funnel: ads and social sharing create awareness, free trials drive consideration, discounts encourage conversion, and personalized playlists help retain users.

    What is the difference between a marketing funnel and a sales funnel?

    The marketing funnel builds awareness and generates leads through broad, content-driven activities. The sales funnel then engages these leads directly, guiding them through negotiation and purchase to close sales. Marketing focuses on content and data, while sales focuses on personal interaction and deal-closing.


    Start Creating a Marketing Funnel That Converts Today!

    Building a marketing funnel is one of the most effective ways to turn strangers into loyal customers. By guiding prospects through each stage, from awareness to retention, you can create a smoother customer journey, enhance conversions, and sustainably grow your business.

    This article has walked you through the definition of a marketing funnel, practical strategies, and real-world case studies to help you design one that works for your business.

    Need more marketing tips or expert guidance? Visit our Blog or Contact us for further assistance. We’re here to help!

    Kevin Nguyen

    Kevin Nguyen

    Kevin Nguyen is the CEO and Co-founder of LitCommerce. He brings over a decade of unparalleled dedication to eCommerce businesses, marking more than 12 years of an illustrious journey in eCommerce and technology.

    Table of Contents

    1. What is a Marketing Funnel?
      1. Marketing funnel vs sales funnel  
      2. Compare B2B vs B2C marketing funnel 
    2. Why Should You Use a Marketing Funnel?  
    3. 4 Key Stages of a Marketing Funnel
      1. Awareness stage
      2. Consideration stage
      3. Conversion stage  
      4. Loyalty stage
    4. Marketing Funnel Case Study
      1. Nike 
      2. AirBnB
      3. Spotify
    5. Marketing Funnel Explained: FAQs
      1. How do I create a marketing funnel?
      2. What are the 4 stages of the marketing funnel?
      3. What is an example of a marketing funnel?
      4. What is the difference between a marketing funnel and a sales funnel?
    6. Start Creating a Marketing Funnel That Converts Today!

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