Find your Prospective Customer in the Buying Funnel (Part I)
A buying funnel is a diagram that represents the different stages that a consumer goes through during the process of buying a service or product. In this three part blog post I’ll go over the principles applied to online marketing, how to build your Google Display Campaigns around these ideas and lastly, how it affects the creation of keywords and ad creative.
Depending on the school of thought or business, a Buying Funnel can contain various numbers of stages and several different names for each stage. Below you can find an example of a relatively simple five-step funnel that can be applied to most online businesses:
When potential customers search for a certain solution, service or product they usually start at the top of the funnel. As customers get better acquainted with the product, some will begin to shift to the lower stages of the funnel and eventually make a decision to purchase.
Experienced PPCers will make sure that as many potential customers move as quickly as possible through the funnel stages in order to become paying customers.
In order to build a good paid search strategy and increase profit you must first understand all stages of the buying funnel.
Let’s begin with the awareness stage. In this stage the consumer is just starting to have a more cohesive understanding of who can offer the information, product, or service they are searching for. Usually the when searching for keywords in these stages the search terms are very broad.
After the consumer has collected some general information about the specific service or product they’re searching for, they will perform more extensive research and dive deeper into the funnel. This stage of the funnel will usually include reading some reviews or price comparing in order to provide the consumer with a clearer direction.
After collecting information and investigating their desired product or service the consumer is ready to make the purchase. At this point, the searches should include more specific keywords that are comprised of model names, geographical modifiers and brands in the search queries.
It’s extremely important to build specific campaigns for the different stages of the buying funnel since customers who search for your product or service might go through all stages of the funnel. Creating unique campaigns for each stage will help maximize your efforts when trying to draw in more traffic and conversions.
The image below represents the buying funnel for a laptop shop. Top level campaigns, such as category and sub-category campaigns will ultimately target the customers at the top of the funnel. The deeper you dive, the more specific the campaigns will get until you reach the bottom of the funnel with a product campaign.
Taking the strategies from the funnel into account when building your PPC campaigns will help your overall strategy and increase your potential for ROI.
Stay tuned for the second part of the post next week – Buying Funnel insights applied to Google Display Network!