In 1898, Elias Elmo Lewis created the shopping funnel, which has become a cornerstone of marketing strategy for more than a century. This funnel, also known as the “hierarchy of effect”, was the basis of Dagmar's advertising planning models and an important structuring tool for large consulting firms. It was designed to help businesses move prospects from awareness to action. Today, the digital sales funnel has replaced the traditional sales funnel.
This linear method has been replaced by a “circular funnel” or “inverted funnel” model. Companies can now use engaging sales pages, FAQs, and other conversion-focused content to attract potential customers. Lead magnets can be used to encourage customers to take the first step down the funnel. By tracking how potential customers travel through the sales funnel, companies can make better predictions about future purchases. The association of the funnel model with the AIDA concept was first proposed in Bond Salesmanship, by William W.
Making fewer mistakes can lead to more sales with the same number of potential customers and, first of all, to getting more new leads into the funnel. Each and every one of these technologies has changed the tactical options available to marketers, but the essential challenge of marketing strategy and the enduring value of a properly derived sales funnel remain intact. Having a deeper understanding of your sales funnel allows you to make better estimates of customer acquisition costs. This content is more likely to attract specific groups of people and therefore make them prominent. For example, if you add a step to your funnel that allows customers to choose add-ons related to their initial purchase, your company may earn more per customer. The sales funnel has been an invaluable tool for businesses for over a century.
It is still used today as an effective way to convert prospects into customers. By understanding how customers travel through your sales funnel, you can make better predictions about future purchases and create content that is more likely to attract specific groups of people.