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The Marketing Funnel: What It Is & How It Works

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Author:Hava Salsi

9 min read

July 10, 2025

Contributors: Sydney Go and Simon Fogg

Every marketer should understand the marketing funnel to help generate more sales.

In this article, you’ll learn about every stage of the marketing funnel, from top to bottom. You’ll also get actionable tips on making your marketing funnel more efficient.

What Is a Marketing Funnel?

A marketing funnel is a model of the customer journey that shows how people move from discovering a brand or product to making purchases and becoming loyal advocates.

Customer journeys can be complex. The marketing funnel simplifies them so you can build a better strategy. The funnel also helps you:

Some potential customers will drop out at each stage of the marketing funnel. Your highest-quality leads will reach the end.

The marketing funnel with awareness, consideration, conversion, and loyalty stages explained

Note

The marketing funnel is also called the purchase funnel, buyer funnel, customer funnel, conversion funnel, or sales funnel.

Why Are Marketing Funnels Important?

Marketing funnels are important because they help you create more effective marketing strategies and understand where leads are in their buying journey so you can deliver the right message at the right time. You can also see where leads drop off.

Use a marketing funnel to find out where your leads drop off or why they become customers, and adjust your marketing strategy to match your potential customers’ needs.

For example, if most leads disappear after the consideration stage, you may need different messaging.

3 Types of Marketing Funnels & Their Stages

Marketing funnels vary by industry and target audience. Businesses build funnels that suit their specific customers.

1. Basic Marketing Funnel

A simple marketing funnel often has three stages:

ToFu, MoFu, and BoFu funnel explained

Example: Imagine you sell band merchandise at a concert.

The basic marketing funnel is great for beginners because it keeps things simple and easy to track. It helps you see how people move from just hearing about you to becoming paying customers.

2. AIDA Marketing Funnel

Another popular marketing funnel model is AIDA: Awareness, Interest, Desire, and Action.

AIDA marketing funnel

AIDA is a classic model that clearly outlines how to capture attention and drive action. It’s especially useful for guiding marketing messages in a structured, straightforward way.

3. Granular Marketing Funnel

You can also break the customer journey into more specific stages:

Granular marketing funnel

The granular marketing funnel dives deeper into each stage, giving you more control over how you engage with customers. It’s ideal if your customer journey is complex and you want to nurture long-term relationships.

Further reading: ToFu, MoFu, BoFu: A Practical Guide to the Conversion Funnel

Strategies for Each Stage of the Marketing Funnel

Customers respond better to certain messages based on their stage in the marketing funnel. Here are strategies that can help.

Top of the Funnel (ToFu)

Potential customers in the top of the funnel (ToFu) stage have just become aware of a problem. They are starting to look for the right solutions.

This is the ideal time to introduce your business, service, or product as the solution they want.

Note

The ToFu stage is also called the awareness, attention, discovery, or engagement stage.

To properly address leads at the ToFu stage, define your target customers and increase brand awareness.

Here’s how.

Define Your Target Customers

Your target customers are people who are most likely to become paying customers. Not everyone who sees your brand will buy what you offer.

Start by analyzing your existing customers. What kinds of people have already purchased your product or service?

Find out using Google Analytics’s “User attributes overview” report. Then note your existing customers’ age ranges, genders, countries, cities, languages, and interests.

User attributes overview report in Google Analytics 4

Next, compare segments in the “Demographic details” report to see which audiences are most likely to engage and convert:

Demographic details report in Google Analytics 4

In this example, 25- to 35-year-olds are the most likely to visit the website and make a purchase.

After that, perform market and competitor research with the Semrush Traffic & Market Toolkit. You can gather data about your potential audience, like:

Use the tool to analyze up to five competitors at the same time. The tool offers several dashboards, like the Demographics and Audience Overlap dashboards, to help you see what competitor audiences look like and what sites they also frequent.

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In this example, Gucci is most popular among 35- to 44-year-olds. Zara, Fendi, Prada, and Dior skew toward a slightly younger audience.

One2Target bar chart showing age breakdown of Zara, Gucci, Fendi, Prada, and Dior audiences

Using the Audience Overlap dashboard, we can see how these domains’ audiences overlap with one another, and also check what other domains the market audience frequents.

Audience Overlap dashboard showing overlapping circles visualization for five luxury fashion brands

Visited Domains table showing fashion and retail websites with total audience and overlap percentages

Use the information to create buyer personas—profiles describing your main customers. Craft marketing messages that speak directly to these personas.

Pro tip

Use our free buyer persona templates to build customer profiles.

Buyer persona template for Mrs. Clark Grimes showing demographics, bio, pain points, and preferences

Increase Brand Awareness with Inbound Marketing

Inbound marketing is a tactic that attracts your target market’s attention by creating content that is relevant to them. In other words, use relevant keywords to rank on Google (or other search engines). This ensures your target audience finds your brand even if you do not reach out.

This method often feels less promotional than advertising. It can also deliver a better return on investment at this stage.

Here’s an example.

Mattress brand Casper has a blog post about cleaning blood out of sheets. The post includes a step-by-step cleaning guide and tips—not a hard sales pitch.

Casper blog post header for 'How to Get Blood Out of Sheets' with hero illustration and content menu

The goal of this article is not to sell a product. It’s to increase brand awareness by:

  1. Discussing a broad but relevant topic that potential customers are interested in
  2. Ranking on Google so potential customers can easily find the brand

And this tactic works. According to Semrush’s Organic Rankings tool, the cleaning article from Casper gets around 10.2K visitors per month.

Semrush Organic Rankings tool report with Traffic data showing 10.2K monthly visitors for Casper blog post URL

Start your inbound marketing strategy by finding the keywords your prospects search for. Try Semrush Keyword Magic Tool. Then, target those keywords with valuable content that naturally draws potential customers to your business.

Open the tool. Enter a keyword related to your product or service. Also, enter your domain name for AI-powered, personalized keyword data. Then click “Search.”

Semrush Keyword Magic Tool start with keyword and domain entered and Search button highlighted

At the ToFu stage, people typically look for general information. So they often use keywords with informational intent.

Note

You need to understand search intent (i.e., the motivation behind a search) to rank well on Google. Check out our guide to search intent if you want to learn more.

To find these keywords, click on the “Intent” filter. Select “Informational,” and click “Apply.”

Informational search intent in Keyword Magic Tool

You now have a list of informational keywords. Look through the following columns:

Pro tip

Use the filters to find keywords that meet these criteria.

Updated keywords list with Volume and PKD% columns highlighted

From the list above, Casper could write a blog post around “how to go to sleep fast” to attract more people into their marketing funnel.

Pro tip

Find more keywords by looking at what your competitors rank for. Use Semrush’s Organic Rankings tool.

Start by entering a rival’s domain, choosing your country, and clicking “Search.”

Organic Rankings Tool start with domain entered and Search button highlighted


Then, go to the “Pages” tab and filter for “Informational” intent again.

 

Organic pages with informational intent


You’ll see pages that rank for informational keywords. They’re sorted by estimated organic search traffic, from highest to lowest. These pages can inspire top-of-funnel content ideas.

Now that you have your list of keywords, the next step is to write search-friendly content. This content can help you secure high search rankings and get more people into your marketing funnel.

However, search is not the only channel for brand awareness. You can also consider:

Try not to spread yourself too thin. Focus on one or two tactics when starting out. The best strategy depends on your buyer personas and resources. Testing and measuring will help you allocate time and money more efficiently.

Pro tip

Use clear CTAs (calls to action) to tell readers what to do next. For example, encourage blog readers to sign up for your newsletter or follow you on social media. That way, your brand stays on their radar.

Middle of the Funnel (MoFu)

In the middle of the funnel, people research solutions. Prospects know they have a problem, and they want to decide which product or service solves it.

Two key tactics:

  1. Educate your prospects
  2. Manage your reputation online

Educate Your Prospects

Show your expertise with educational content to build trust and clarify how you differ from competitors. A strong support team can answer questions via live chat, phone, email, or social media.

Middle of the funnel content questions and replies

Offer self-serve resources (like success stories or product overviews) highlighting your product’s usability.

Example: Casper’s mattress size comparison guide attracts prospects seeking the right mattress. The guide draws more than 472,000 organic visits a month from Google.

SEO Tool dashboard showing mattress guide analysis with 472.5K traffic, $409.6K cost, and trend chart

Use Semrush’s Keyword Magic Tool to find commercial-intent keywords. Then create relevant content to address prospects’ questions.

Keyword Magic Tool interface for 'sleep' keyword showing intent filter with Commercial intent selected

Manage Your Reputation Online

Prospects often look for reviews, ratings, or user feedback at the MoFu stage. Negative or unaddressed reviews can deter them.

To check your brand’s reputation:

Brand monitoring dashboard showing 2.38K mentions, 18.14M backlink traffic, and sentiment breakdown

Bottom of the Funnel (BoFu)

At the bottom of the funnel, prospects decide to buy. People may search for transactional keywords like “buy mattress” or “mattress store near me.”

You want prospects to click on your site or go directly to your product pages.

Build Awesome Landing Pages

Landing pages convince visitors to purchase. A landing page’s quality affects organic and paid rankings, conversions, and bounce rates.

Best practices:

Use Semrush’s On Page SEO Checker for recommendations on improving content and user experience.

Total Ideas donut chart showing 258 ideas for 39 pages with breakdown by seven content categories

Pro tip

Retarget ads to people who leave your site without buying. Show prospects ads to remind them of your offerings.

Turn Buyers into Loyal Customers

Loyalty and advocacy also belong at the bottom of the funnel because the buyer’s journey should continue after purchase. A strong relationship encourages repeat purchases and referrals.

An image representing customers moving through the marketing funnel, and turning to loyal customers

Loyalty or referral programs should reward customers for coming back or recommending you. If you choose not to have a loyalty program, offer great aftercare. For example, Casper shares a mattress maintenance guide.

Casper blog post header for 'How to Keep Your Mattress in Tip Top Shape' with dark hero background

Use email and social media to keep customers engaged and remind them of your brand after a purchase.

Marketing Funnel Metrics

Set goals for each stage of the marketing funnel so you can identify weak areas and measure growth. Common funnel metrics include:

Metric
Description
Top of funnel
Page views
How many views your webpages get
Impressions
How many times your SERP listings or social media posts appear
Click-through rate
Percentage of impressions that turn into clicks
Engagement
Number of interactions with your content
Middle of funnel
Time on page
How long visitors spend reading your content
Bounce rate
Percentage of visits that leave without a next action
Google star rating
Average rating on your Google Business Profile
Bottom of funnel
Conversion rate
Percentage of landing page visits that result in a sale
Return on ad spend (ROAS)
Ad revenue minus ad costs equals ROAS

Use Google Analytics for most funnel metrics. Refer to our Google Analytics guide for help.

Create Your Marketing Funnel

Building a marketing funnel involves more than drawing stages. You must understand your target customers, how their needs change, and how to serve them at every stage. Data is essential for making these decisions.

That’s why many marketers use Semrush to build a marketing strategy. Semrush’s digital marketing toolkit provides the data you need to understand your audience and optimize your strategy—every step of the way. Try Semrush for free today.

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Hava Salsi

Hava Salsi is a Swiss-based content writer specializing in B2B SaaS, HR, and tech. With over 5 years of experience working with startups and businesses around the world, she produces engaging, user-centric content that ranks highly and drives conversions.

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