A funnel, or conversion funnel, is a conceptual model used in marketing to represent the various stages through which potential customers pass before completing a desired action, such as a purchase, registration or request for quotation. This model is often represented in the shape of a funnel, as it starts with a large number of prospects at the top of the funnel and narrows as prospects progress towards the final conversion (bottom of the funnel).

Typical Funnel Steps :

1. Top of the Funnel (TOFU) – Awareness:
   • Objective: To attract the attention of a wide audience.
   • Description: This is the phase when consumers become aware of the existence of a brand, product or service. The aim is to generate awareness and attract a wide range of potential prospects.
   • Content examples: informative blog posts, explainer videos, infographics, social network advertising, free e-books.
2. Middle of the Funnel (MOFU) – Consideration:
   • Objective: Educate and nurture prospects.
   • Description: At this stage, prospects are aware of their need or problem and are actively looking for solutions. The aim is to further educate, engage and encourage them to consider your product or service as a potential solution.
   • Content examples: Webinars, case studies, product demonstrations, how-to guides, product/service comparisons.
3. Bottom of the Funnel (BOFU) – Decision:
   • Objective: Convert prospects into customers.
   • Description: Prospects at this stage are ready to make a purchasing decision. The aim is to convince them that your product or service is the best choice, and to encourage them to finalize the purchase.
   • Content examples: Special offers, free trials, free consultations, customer testimonials, satisfaction guarantees, discount coupons.

Importance of the Funnel :

1. Marketing segmentation: The funnel enables marketing strategies to be segmented according to the different stages of the customer journey. Each stage requires a different approach to capture attention, nurture interest and inspire action.
2. Conversion Rate Optimization: By understanding how prospects move through the funnel, companies can identify friction points and optimize each stage to increase overall conversion rates.
3. Tracking and measuring performance: The funnel makes it possible to track and measure the effectiveness of marketing actions at every stage. This helps determine where efforts are most effective and where improvements are needed.
4. Aligning marketing and sales teams: The funnel helps to align marketing and sales teams by providing them with a common framework for understanding the customer journey and collaborating more effectively.

Example applied to asset management:

1. TOFU (Awareness): A user discovers a post on a financial advice site via a Google search. The article deals with the basics of retirement planning.
2. MOFU (Consideration): After reading the article, the user signs up to receive a series of educational emails on financial planning and downloads a free guide to investment strategies.
3. BOFU (Decision): After following e-mails and reading testimonials from satisfied customers, the user makes an appointment for a free consultation with a financial advisor and ends up signing up for a wealth management service.

The funnel is therefore a key strategic tool in marketing, making it possible to understand, track and optimize the customer journey from awareness to conversion. By segmenting marketing efforts according to the different stages of the funnel, companies can maximize efficiency, improve conversion rates and align their teams around common objectives.