March 27, 2023

Understanding the Funnel:A Guide to Measuring Success in Marketing

Measuring Success in Marketing
Read Time
5 MIN

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Marketing is all about driving business success, and metrics play a crucial role in measuring that success. But how do we measure it? That's where the funnel comes in.

 

The funnel is a marketing model that visualises the customer journey from awareness to purchase. At each stage of the funnel, marketers measure the number of:

● Web Visitors

● Leads

● Marketing-Qualified Leads (MQLs)

● Sales-Qualified Leads (SQLs)

● Sales Opportunities

● Customers

 

The funnel begins with web visitors, or people who come to your website. These individuals are typically interested in your product or service and want to learn more. Marketers measure the number of web visitors to understand how many people are interested in their offering and how effective their marketing efforts are at attracting potential customers.

 

The next stage of the funnel is leads. These are individuals for whom you have contact or demographic information, such as name, title, and email address. Marketers measure the number of leads to understand how effective their website and marketing campaigns are at capturing contact information from potential customers.

 

Once you have captured a lead, the next step is to determine whether they are a marketing-qualified lead (MQL). MQLs are business consumers who have interacted with your brand or have the demographic fit showing they fit the profile to potentially become a customer. Marketers measure the number of MQLs to understand how effective their marketing campaigns are at attracting and engaging potential customers.

 

After a lead has been qualified as an MQL, the next step is to determine whether they are a sales-qualified lead (SQL). SQLs are buyers who have been individually vetted by the sales team. This is an extra qualification step done on an individual basis, determining if a buyer is ready to speak with a sales representative. Marketers measure the number of SQLs to understand how effective their sales and marketing efforts are at identifying and engaging potential customers who are ready to speak with a sales representative.

 

Once a lead has been qualified as an SQL, the next step is to turn them into a sales opportunity. Sales opportunities are prospects who have spoken with your sales team and say they are interested in your product and would like to know more. Marketers measure the number of sales opportunities to understand how effective their sales and marketing efforts are at identifying and engaging potential customers who are ready to make a purchase.

 

Finally, the funnel ends with customers. Customers are individuals whose company now uses your product or service. They are no longer prospects but rather loyal customers who have made a purchase. Marketers measure the number of customers to understand how effective their sales and marketing efforts are at converting potential customers into loyal customers.

 

In conclusion, the funnel is a powerful tool for measuring success in marketing. By measuring the number of web visitors, leads, MQLs, SQLs, sales opportunities, and customers at each stage of the funnel, marketers can understand how effective their marketing and sales efforts are at driving business success. By focusing on each stage of the funnel and optimising the customer journey, marketers can increase the number of customers and ultimately drive business growth.

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