Business Dictionary
Funnel
Definition
A consumer-focused marketing model that illustrates the theoretical customer journey toward the purchase of a good or service.
Deep Dive
A funnel, in marketing and sales, is a conceptual model that illustrates the theoretical customer journey, representing the sequential stages a prospective customer goes through from initial awareness of a product or service to making a purchase and potentially becoming a loyal advocate. Typically depicted as a wide top narrowing to a smaller bottom, it reflects the reality that not all initial prospects will become customers, with the number of potential customers decreasing at each successive stage. Common stages include Awareness, Interest, Desire, and Action (AIDA model).
Examples & Use Cases
- 1A marketing funnel tracking users from seeing an advertisement, clicking through, visiting a landing page, and finally completing a purchase
- 2A sales funnel managing leads from initial contact, qualification, proposal presentation, negotiation, and ultimately closing a deal
- 3A hiring funnel illustrating candidates moving from resume submission, interviews, assessments, to receiving a job offer.
Related Terms
Customer JourneySales PipelineLead Nurturing