Blog 43: Marketing funnel metrics explained

In blog 42, we looked at the marketing funnel and its four stages i.e., awareness, interest (or consideration), desire (or conversion), action (or loyalty).

Using this framework, we can run targeted campaigns at different stages of the marketing funnel. Funnel performance can be analysed in three phases: top, middle, and bottom.

Top-of-the-funnel (TOFU)

At the top of the funnel, several potential prospects may not be aware of our brand.

This phase, maps to the ‘awareness’ stage (of AIDA). In this phase, the focus is on generating awareness.

Activities can include:

· Ads across different channels

· Podcasts or webinars

· Educational content

· Product-focused landing pages and etc. 

TOFU metrics include:

· Number of app or site visits

· Number of unique reach

· Completion rate

· Click-through-rate (CTR) and etc.

Middle-of-the-funnel (MOFU)

This phase, maps to the ‘interest’ and ‘desire’ stages (of AIDA). Firms must effectively articulate why its product is the solution to a pain point.

Activities here are just an extension of the TOFU activities:

· Highly specific content with respect to the pain point.

· How-to guides

· Product overviews

· Focused email campaigns and etc.

MOFU metrics include:

· Number of detailed page views

· Percentage that is new-to-brand and etc.

Bottom-of-the-funnel (BOFU)

This phase, maps to the ‘action’ or ‘loyalty’ stage (of AIDA). The action could be a purchase or subscribe or register or signup etc.

Activities include:

· Live demo

· Buyer’s guide (with a comprehensive competitor comparison)

· Customer stories/testimonials and etc. 

BOFU metrics include:

· Activation: Number of signups or registration or purchases, Time on your site or app, Signing up for your newsletter, Signing up for your free trial, Conversion rate

· Retention: Returning to your product repeatedly over a given timeframe, Returning to your website, Opening your company’s emails

· Referral: Emails with referral promotions embedded, Referral contests, Campaigns to share the product with others

· Revenue: Return on ad spend (ROAS), Customer lifetime value (CLV), Customer acquisition cost (CAC)

One commonly used metrics framework is known as the AARRR. AARRR stands for Acquisition, Activation, Retention, Revenue, and Referral. This model was developed by venture capitalist Dave McClure. 

By leveraging TOFU, MOFU, and BOFU benchmarks, firms can optimize their activities and marketing budgets.

Jump to blog 100 to refer to the overall product management mind map.

Source:

https://en.wikipedia.org/wiki/Purchase_funnel. Funnel model with the AIDA concept was first proposed in Bond Salesmanship by William W. Townsend in 1924.

https://www.productplan.com/glossary/aarrr-framework/

https://planful.com/blog/how-to-calculate-your-marketing-funnel-metrics-and-budget/

https://advertising.amazon.com/library/guides/marketing-funnel#:~:text=A%20marketing%20funnel%20is%20the,%2C%20to%20decision%2C%20then%20loyalty.

All the best! 😊