What Is a Funnel in Digital Marketing? Explained Simply.

Shirin Niasati

Author

Shirin Niasati is a Product Owner and Website Developer at Persisca Technologies, specializing in digital solutions.

What’s a Funnel Anyway?

A funnel in online marketing is just a way to describe how people move from being random strangers to paying customers. Think of it like running a lemonade stand:

1. You put up a sign to let people know you’re selling lemonade.
2. Some people walk by and notice it.
3. A few stop and ask about the price.
4. Some of those people decide to buy.
5. A few might even come back for more or tell their friends.

Not everyone who walks by will buy a cup. Some might stop but change their mind. Some might not even see the sign. A funnel helps you figure out what’s stopping people from buying so you can fix it.

Online, this works the same way. People don’t usually buy something the first time they see it. They need to go through a few steps before they decide. A marketing funnel helps break those steps down, so you can make things easier for them.

Why Should You Care About Funnels?

If you run a business, you probably care about getting more customers. Funnels help you figure out:

• Where people are getting stuck – Are they clicking on your website but not buying? Are they adding stuff to their cart but leaving before they pay?
• What’s working and what’s not – Maybe your ads are great, but your website is confusing. Maybe your prices scare people away. A funnel helps you spot these issues.
• How to get more sales – By making small changes, like improving your website or changing your ad wording, you can guide more people through the funnel and increase sales.

A lot of business owners think people will just magically buy their stuff if they see it. But that’s not how it works. People need to go through steps before they feel ready to spend money. A funnel helps you make that process smooth.

The Three Big Steps in a Funnel

Most funnels have three main parts:

1. People Find You

This is the very first step. If people don’t even know your business exists, they can’t buy from you.

How do people usually find a business online?

• Ads on Google, Facebook, or Instagram
• Social media posts
• YouTube videos
• Word-of-mouth (friends telling friends)
• Blog posts that answer questions people have

At this stage, you’re just trying to get in front of people. The more people see your business, the more might become customers later.

2. People Check You Out

Once someone knows you exist, they’ll want to know more before they buy. They might:

• Click on your website
• Read reviews
• Watch a demo video
• Compare prices with other businesses

This is where you need to make a good impression. If your website looks outdated or confusing, people might leave. If they can’t find answers to their questions, they might look somewhere else.

3. People Decide to Buy

This is the final step—where someone takes out their wallet and actually buys something.

To make this easy, you should:

• Have a simple checkout process
• Show the price clearly (no hidden fees!)
• Offer different payment options (credit card, PayPal, etc.)
• Provide fast customer support if they have questions

If people get confused or frustrated here, they’ll leave without buying. Even small problems, like a slow website or too many steps at checkout, can stop sales.

Why a Funnel Looks Like a Triangle

Funnels are often drawn as an upside-down triangle because a lot of people start at the top, but only a few make it to the bottom.

• Top (Lots of People): Many people see your ad or hear about you.
• Middle (Some People): A smaller group visits your website or reads about your product.
• Bottom (Few People): Only a few actually buy something.

The goal is to get more people from the top to the bottom. The better you guide them through, the more sales you’ll get.

How to Fix a Funnel That’s Not Working

If you’re not getting enough sales, there’s probably a problem in one of these steps.

1. Not Enough People Know About You?

• Maybe your ads aren’t reaching the right people.
• Your website isn’t showing up on Google.
• Your social media isn’t active enough.

Try running better ads or posting more useful content.

2. People See Your Business but Don’t Check It Out?

• Maybe your ads or website don’t look professional.
• Your messaging isn’t clear.
• You’re attracting the wrong audience.

Try making your messaging clearer and making your website easy to navigate.

3. People Visit Your Website but Don’t Buy?

• Maybe your checkout process is too complicated.
• Your prices are too high compared to competitors.
• People don’t trust your business yet.

Try offering discounts, making the checkout process easier, and adding real customer reviews to your website.

Ways to Make Your Funnel Work Better

1. Talk to the Right People

If you’re selling expensive shoes, you don’t want to advertise to people looking for cheap flip-flops. The more specific your audience, the better your results.

2. Make Everything Easy to Understand

People don’t like being confused. Your website, ads, and product descriptions should be super clear.

3. Follow Up with People

Sometimes, people need a little nudge. If they leave your website without buying, you can:

• Send them an email reminder
• Show them another ad later
• Offer a small discount to bring them back

4. Test Different Things

If something isn’t working, change it up. Try different pictures, wording, or layouts to see what gets better results.

Funnels Aren’t Just for Selling Stuff

Funnels aren’t just about selling products. They can be used for other goals too, like:

• Getting people to sign up for a newsletter
• Encouraging people to book an appointment
• Getting more followers on social media

No matter what your goal is, a funnel helps guide people toward it step by step.

Real-Life Example of a Funnel

Let’s say you run an online store selling handmade candles. Here’s what your funnel might look like:

1. A person sees your ad on Instagram. (First step)
2. They click on the ad and visit your website. (Now they’re interested)
3. They read about your candles and look at reviews. (They’re considering buying)
4. They add a candle to their cart but leave without buying. (They got distracted)
5. You send them an email with a 10% discount. (You remind them)
6. They come back and finally buy the candle. (Success!)

Without a funnel, you might have lost that sale. But because you had a process in place, you helped guide them from noticing you to actually buying.

A marketing funnel is just a step-by-step way to turn random people into customers. It helps you see where you’re losing people and how to fix it. The better your funnel, the more sales you’ll get.

If your business isn’t growing as fast as you’d like, take a look at your funnel. There’s probably something you can tweak to get better results.