What is a lead generation funnel and how do you build one?

Every business should have a strategy to attract customers to help their company thrive and grow. 

While a strategy is vital, a lead funnel can be useful by providing a more detailed process to complement a firm’s overall strategy. 

We explore what a lead funnel is, the different types, and tips on how to build one.

What is a lead generation funnel? 

A lead funnel is a process someone moves through to convert from a potential client to a paying one. 

It has three stages that a potential client moves through: 

• Top of funnel: This first stage is all about awareness, as someone may only have discovered your company but is not interested in the products or services yet. So, you could offer valuable information and content to showcase your firm’s expertise and find a way to engage with them at a later date, such as via newsletters. 

• Middle funnel: This stage is where someone is aware of your firm’s products and services and is considering if they are right for them. Now’s the time to demonstrate the value of your business, which could include a free trial. You could also have an email campaign to boost interest, including highlighting testimonials and reviews.  

• Bottom of the funnel: This is often known as the conversion stage, as the potential client should be happy to use your company’s products and services, but this doesn’t mean you stop interacting. You may transfer the potential client to the sales team to confirm the deal and possibly make them a recurring customer.  

A lead funnel is useful as it can help you decide the best course of action, depending on where a potential client is in the funnel. It can also determine if a marketing qualified lead (MQL) is high quality and ready to convert, saving the potential client and sales team valuable time.  

What are the different types of funnels? 

There are other types of funnels, including: 

• Sales funnel: These can be used for high-quality MQLs and existing customers. A sales team can use this funnel to help confirm new clients and upsell existing ones.  

• Content marketing funnel: This type of funnel guides potential clients to a specific goal by delivering personalised content to inform and educate. Your business may use content to encourage people to sign up for a newsletter and boost awareness of your product and services in the hopes someone will convert either now or later.  

• Social media funnel: This funnel uses content and social media platforms to attract potential clients and nurture them into paying for your firm’s products and services.  

• Email marketing funnel: With an email marketing funnel, you have email campaigns with relevant and informative content to help attract new clients by nurturing them.  

Ultimately, the key goal of any funnel is to help convert potential clients into paying ones. However, the funnel may change to consider any channel differences, such as social media platforms or email. 

How can your company build a lead generation funnel? 

Building a lead funnel doesn’t have to be complex. We reveal some key tips when setting one up. 

Have a target audience in mind 

It’s worth considering who your ideal customer is, as this will help shape your lead funnel. 

If you’re struggling to figure this out, some of these questions could help: 

• Who would most benefit from my company’s products and services and why? 

• Is there any market research I can use to understand my target demographic? 

• What channels would be most helpful to engage with potential customers? 

• Are my company’s products and services suitable for my desired audience? 

• What are the issues potential customers face? 

• How do my firm’s products and services stack up against my rivals? 

• What does a potential client need throughout the lead funnel? 

Understanding the answer to the final question is key, as it’ll help you understand how a potential client can progress through the funnel during the considering, awareness, and conversion stages. Talking to existing customers can yield insightful information.  

You should consider what a potential client will do at each stage. For example, they may shop around, read reviews, or consider a free trial.  

Knowing what you want a potential client to do at each stage will help you decide what you need to do to encourage this, so they move further down the funnel as their interest grows.  

Focus on creating high-quality content 

It’s essential to create content that will answer questions your potential customers have, as it’ll build trust with your audience and support your search engine optimisation (SEO) efforts. 

SEO can help attract potential clients by helping your content appear higher in search results. 

Insightful content can also boost brand awareness and highlight your company’s knowledge and expertise, whether it’s via articles, whitepapers, eBooks, guides, or webinars.  

Use calls to action strategically 

Calls to action (CTA) can encourage people to take certain actions to progress through the lead funnel, including signing up for a newsletter or using a free trial. CTAs can be used throughout your company assets, such as articles, emails, and landing pages. 

Some companies will use various methods to encourage people to share their email addresses, including downloading a free whitepaper or gaining access to a discount code.  

Decide how you want to attract clients 

Understanding where your target audience is and how to engage with them is crucial. For example, if you decide to use social media, make sure you choose the right one for your desired clients. 

You could also do some testing to see which platforms generate the most high-intent people.  

You can also consider other methods, such as advertising and partnerships.  

Ensure your company has a sales funnel and pipeline 

Once an individual is at the final stage of the lead funnel, sales can get involved to help seal the deal or upsell if appropriate. 

Having a sales funnel ensures you engage with a potential client engages at all stages and maximises the chances of a successful deal, while a sales pipeline can help track their progress. 

A sales pipeline can help your company prioritise who to engage with first, keep track of the following steps and overall progress, and identify any issues so these can be resolved. 

Track the effectiveness of a lead funnel 

It’s a good idea once you’ve completed your lead funnel to ensure effective tracking. 

For example, how many potential clients reach the bottom of the funnel? Are there any stages where someone is taking longer than expected or encountering blockers? 

By looking at how potential clients act through the funnel and gathering feedback, your company can implement improvements to help successfully attract new clients. 

What are the pros and cons of a lead funnel? 

There are many advantages and disadvantages to consider when using a lead funnel. 

The pros of a lead funnel: 

• You can target your ideal clients: With a lead funnel, you can develop a strategy to attract your ideal clientele and offer them what they need, including targeted content. 

• You can understand your clients better: When building a lead funnel, customer feedback is essential to help navigate potential blockers. 

• Data can be used to optimise your funnel: Setting up key metrics and tracking with a lead funnel is useful to determine how effective it is and if any changes need to be made. 

• Potential clients are more likely to convert: If you have a lead funnel in place and are producing valuable content and using CTAs effectively, you’re more likely to engage with individuals interested in your company’s products and services.  

The cons of a lead funnel: 

• Not everyone will become a paying customer: It’s worth stressing not everyone you target will become a paying customer or follow all stages. For example, some may initially be interested in the firm by signing up for a newsletter but then decide not to proceed.  

• Setting up a lead funnel takes time: Setting up a lead funnel involves preparation, including understanding your desired audience, conducting industry research, and deciding on the right channels to use. 

• There’s a temptation to stop engaging: Once someone has reached the bottom of the funnel, it may be tempting to stop engaging with them. However, continually interacting with customers is vital to ensure they are happy and to continue offering value. This could encourage customers to consider your firm again or recommend it to others.  

Work with Unbiased 

Attracting new customers is vital to growing your business, although it can be a time-consuming and expensive process. 

With Unbiased, you’ll receive pre-verified leads and all the tools you need to convert them straight to your inbox.   

Get in touch with Unbiased Pro today to see how it can help your business thrive.