The customer acquisition funnel is the process of visualisation through which a customer is acquired. Simply put, It is a step-by-step process of acquiring a customer. By setting up a customer acquisition funnel, a business is guiding a prospect through various stages to a definite end-point while engaging the prospect and empathetically learning more about their problems.
The customer Acquisition funnel is a framework with well-defined stages. A funnel can be divided into three primary stages - Awareness, Acquisition and Conversion. A business can further customise these stages into sub-stages based on its established process.
Awareness: Brand marketing efforts and independent research expose new prospects and visitors to the business.
Acquisition: Prospects commit to call-to-action and usually cost nothing to the prospect. Prospect is now a lead.
Conversion: With a series of engagements and value-driven service, a lead becomes a customer by making a transaction and enters into the customer retention funnel.
Why is Customer Acquisition Funnel Important?
By mapping the user journey through various funnel stages, a business visualises users' thought processes at different stages.
With this visualisation, business gains tremendous insights into the users' buying pattern.
A strong customer acquisition funnel will minimise the risk of losing a prospect.