The marketing funnel - sometimes called the sales funnel, the purchase funnel, or the buyer’s journey, - is a fundamental concept in marketing for understanding the step by step process that consumers go through to make a purchasing decision.
Each week we will focus on one segment of the funnel and go into more detail. Last week we introduced the purchase stage.
This week’s segment: Loyalty
An older version of the marketing funnel, that many companies still wrongly use today, would have ended with last week’s “purchase stage” explanation. But the modern marketer’s job does not end when a customer makes a purchase. We want that customer to be satisfied, and we want that satisfaction to translate into future sales.
Loyalty is the new end of the funnel. And one could argue the start of a brand new funnel specifically designed to sell to existing customers.
To effectively take someone from the first sale to the second one, you have to make sure a couple of things happen on a consistent basis:
- They get the promised value out of using your product
- Any interaction with customer service or sales is pleasant
- You stay in touch with them
Happy customers come back for more. They refer their friends. They leave positive reviews online and help your company’s reputation. Unhappy customers flee for your competitors and leave negative reviews online for all to see.
To improve customer happiness, marketing can conduct customer surveys, create an online community, offer incentives for frequent shoppers, and actively work with customer service teams to improve customer relations.
So ends the seven part series on the different stages of the marketing funnel. Did you miss any? Look back here.