The customer journey funnelincludes the stages a customer moves through with a brand, product, or service, from the moment of discovery to making a purchase or sharing their thoughts with others. Businesses must focus on optimizing the customer journey funnel to ensure that they meet customer needs at every stage. Doing so can increase sales and customer retention, turning casual buyers into loyal customers.

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In this article:

• What is the customer journey funnel?
• Stages of the customer journey funnel
• Optimizing the customer journey funnel
• Frequently asked questions

What is the customer journey funnel?

The customer journey funnel follows a customer throughout and beyond the buying process. The funnel includes multiple stages, from customer awareness to customer advocacy, each signifying a different part of the customer journey and requiring various engagement strategies from a company.

Of note, the customer journey funnel is much more than a sales or marketing funnel. While a sales funnel’s primary purpose is to turn prospective buyers into paying customers, a customer journey funnel is designed to follow the customer past the buying stage and into the retention and advocacy stages of the buying experience.

By optimizing and understanding the customer journey funnel, a company can cultivate customer loyalty and brand advocacy.

Stages of the customer journey funnel

The customer journey funnel generally follows similar stages in companies of all sizes and types.

Stage 1: Awareness

During the awareness stage, a customer first becomes aware of a product, service, or brand. The customer realizes they have some sort of need that hasn’t yet been met by another product on the market, so they either look for a product to meet that need or find interest in a product advertised to them. Businesses can use multiple types of marketing to drive awareness, like SEO-focused content, social media engagement, or PR announcements.

This stage is all about first impressions, so brands must give customers an accurate picture of what they offer. While quick, snappy advertising can capture attention, sustained efforts like a targeted email series or free product offers can deepen brand awareness, spark interest, and nurture warm leads.

Stage 2: Consideration

Potential buyers compare their options during the consideration stage. They now know about a product or service but haven’t yet decided if they want to buy it. They’re likely comparing features, prices, and benefits of similar products on the market to determine their best option.

At this stage, brands have several opportunities to pull customers to their product or service by engaging with customers, offering promotions, and providing in-depth content that drills down benefits and features. Brands might also provide testimonials and comparisons of competitor products to convince buyers that their product is the right choice.

Stage 3: Decision

Perhaps the most critical stage of the customer journey funnel, the decision stage is when a customer decides to buy a product or service. At this point, the customer has already compared their options and decided that brand A’s product meets their needs better than brand B’s version, causing them to decide to purchase from brand A.

While the customer has made up their mind, the brand still has work to do. During the decision stage, the brand needs to make the buying process as easy as possible to ensure follow-through. Offering multiple payment methods, simplifying the checkout process, and offering discounts are excellent ways to keep a buyer focused on completing a sale.

Stage 4: Retention

Next is retention, which involves keeping current customers as ongoing customers. Companies shouldn’t be satisfied with a single sale from a customer; it’s repeat sales that keep the company growing.

At this stage of the funnel, customers expect companies to continue to win them over through solid promotions, updates to the products or services they own, or new and innovative products or features that set the brand apart from competitors. Companies can also use reward programs, celebrate customer milestones, and personalize their communications to customers to incentivize loyalty.

Stage 5: Advocacy

During the advocacy stage, customers become advocates for a company. They love the products or services they’ve bought and feel a true sense of loyalty to that company, making them feel comfortable sharing information about the company and its products with people they know or their online audiences.

Companies can optimize the advocacy stage by encouraging customers to share user-generated content, hosting giveaways to create a buzz around the brand, and creating referral programs.

Optimizing the customer journey funnel

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Head over to the CallMiner blog for insights into how AI technology is shaping #CX, including enhancing customer satisfaction and loyalty. ⬇️

— CallMiner, Inc. (@CallMiner) September 6, 2024

You’ll need a strategic approach at each stage of the customer journey funnel to ensure that customers have a seamless, positive experience from awareness to advocacy. Customer journey analytics software like CallMiner Eureka can help you visualize the customer journey funnel and identify areas in the funnel that may be causing potential buyers to drop off as well as identify key areas that turn leads into sales.

This software can track key metrics and analyze data, allowing you to make data-driven decisions and strategy adjustments. Request a CallMiner demo today to learn more.

Frequently asked questions

What is the difference between a sales funnel and a customer journey funnel?

A sales funnel focuses on converting prospects to customers and typically ends once a sale is complete. In contrast, a customer journey funnel follows customers from the awareness stage to the advocacy stage, well after a customer buys a product. The focus of a customer journey funnel is to document the entire experience a customer has with a brand rather than just a sale.

How can small businesses create an effective customer journey funnel?

Small businesses and businesses of all sizes should clearly define each stage of the customer journey and how it relates to their specific customers. Focus on delivering valuable content, personalized experiences, incentives, and exceptional customer service at every stage, honing in on what your customer base expects and values most.

What are the five stages of the customer journey?

The customer journey is generally split up into the following stages: awareness, consideration, decision, retention, and advocacy. These stages move customers from the moment they become aware of a product to after they make a purchase, become loyal customers, and share their loyalty to a brand with others.