Customer Acquisition Funnel

In the past, studies showed that only 10 to 15% of acquired leads eventually became paying customers. 

What this means is that the more potential clients you can attract to your products or services, the faster your organization will grow. Unfortunately, successfully capturing new leads is rarely a straightforward process.

A smart way to overcome this challenge is to get smart and find ways to build and improve your “Customer acquisition strategy”, paying particular attention to the “Customer acquisition funnel”.

What is a Customer Acquisition Funnel?

A Customer Acquisition Funnel is a strategic framework used to analyze the journey potential customers undertake from initial awareness of a product or service to becoming loyal buyers.

This funnel is a tool that can be used to encourage prospects to engage with your business, moving them through several stages, to the endpoint of becoming a loyal customer.

Customer Acquisition Funnel Stages

Stage 1: Awareness

This stage involves making potential customers aware of your brand, product, or service. It is the first and initial contact that the prospect will be having with your business.

One of the most efficient marketing techniques for SaaS in the awareness stage of the funnel is “inbound marketing”. If done right, it will be ten times more impactful than outbound techniques. Some examples of inbound strategies that generate awareness are Content marketing, Social media advertising, Search engine optimization (SEO), and Influencer partnerships.
Metrics To Monitor: Website traffic, social media engagement, brand mentions, and impressions.

Stage 2: Interest

Getting customers to know about your product is not enough, you’ve got to get them interested in your product or service.

To do this, here are some marketing strategies you can adopt: 

  • Email campaigns, 
  • Lead magnets (e.g., ebooks, webinars), 
  • Retargeting ads, or 
  • Product demos.

Metrics To Monitor: Click-through rates (CTR), Email open rates, Lead generation, Bounce rates.

Stage 3: Consideration

Once a prospect has gone through the awareness and interest stage of the funnel, the next thing they do is, start considering several options they have for the problem they are trying to solve.

Remember, you are not the only one in the market, so If they’ve moved down your acquisition funnel, then it means your brand will be one of them, however, there’s no guarantee that it will be their first choice. 

To attract prospects at this stage, you should publish comparison posts with your competitors: posts that compare them and your brand. Helping your prospects decide (even if it doesn’t end in your favour!) will make them remember you later on.
Metrics To Monitor: Time on Page, Page Views, Downloads, Email Subscriptions, Click-Through Rate (CTR), Social Media Engagement.

Stage 4: Intent

At this point, the prospects are showing more than enough signs that they want to purchase your product or service, meaning they are showing the “buyer’s intent”.

Some of these signs include -: Frequent visits to your web pages and high engagement with emails, campaigns, CTAs, and so on.

Metrics To Monitor: Time on Page, Page Views, Downloads, Email Subscriptions, Click-Through Rate (CTR), Social Media Engagement

Stage 5: Evaluation

The evaluation stage of the acquisition funnel is where potential customers thoroughly assess your products or services, comparing them against competitors and evaluating various factors before making a final purchase decision.

This stage is critical, as it often involves direct interaction with your offerings and deeper consideration of their value proposition.

Some of the strategies you can adopt during this stage include:

  • offering demos and free trials,
  • highlighting social proof such as testimonials, reviews, case studies, endorsements from industry influencers, personalized recommendations and so on.

Metrics To Monitor: Trial Conversions, Cart Abandonment Rate, Customer Feedback and so on

Stage 6: Purchase

This is the stage where customers make the final purchase decision. and it’s the stage that every SaaS company ultimately wants to reach in the funnel. 

While this stage may be the last in the Customer Acquisition Funnel, it’s not the final step in the SaaS Marketing Funnel. You will still need to retain acquired customers and turn them into advocates of your brand.

In closing

Whether you're a SaaS startup or a well-established business, developing an effective customer acquisition strategy is crucial. The process, however, can be challenging. 

To discover and design the best customer acquisition strategy suitable for your business, you can jump on a call with any of our growth specialists.

Book Your Free Session Today

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