A “funnel” (or “marketing funnel”) is a model of the psychological process (including behavior) from when a customer becomes aware of a product or service to when they make a purchase.
In the first place, “funnel” means “funnel” in Japanese, and is a tool used to pour liquid into a container with a narrow mouth. From a company’s perspective, the number of customers who make the final purchase decision should be significantly lower than the first contact, which is awareness. This term came to be used because it resembles the shape of an inverted triangle “funnel.”
Basic concept of funnel
Here we will discuss the three stages of the marketing funnel.
- The first stage is “recognition”.
The first step in the process of purchasing a product or service is awareness. “Cognition” is classified into the following two types.
The first is to directly know the target, such as the product or service, or the company or store that handles it. This also includes cases where you are aware of it without being aware of it. For example, a person may become interested in a product or service that he or she did not know about before through mass advertising such as a train strap advertisement or a TV commercial. The number of various marketing advertisements from companies aiming at this is increasing.
The second part of “awareness” is knowing “
needs
.” Products and services are just a means to a solution, and you may even need to know why those products or services are needed. Specifically, it refers to recognizing the “issues” and “problems” that need to be solved, or in other words, knowing the “needs” of your company. This can also be said to fall under the category of “cognition.”
- Intermediate stage “Comparison and consideration”
The next step after “recognition” is “comparison and consideration.”
In general, after a customer becomes aware of a product, service, or need, their interest increases and they are likely to take the next step. For example, a customer’s psychological state may be, “I want more detailed information,” “I want to know more about the product, service, or company,” “I wonder if there are other similar products or services,” or “Compare products and services with other companies.” This creates an internal desire such as “I want to do something,” and the customer actually searches for, compares, and considers information.
- The last step is “Purchase”
After the final negotiation, the customer makes the decision to “purchase” the product or service. At that time, it is necessary to adjust the terms of the contract through communication with the person in charge of purchasing, such as negotiating specific prices and confirming ancillary services. The important thing to keep in mind here is that no matter how much a purchasing manager makes a decision, the decision-making of the company as a whole is important. In the case of
BtoB
, it is necessary to focus on how to make decisions as an organization, rather than on individuals.
Reference article
