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What is and How to Use Marketing Funnel in eCommerce

marketing funnel
Image credits: Semrush

In the vibrant tapestry of digital marketing, the marketing funnel stands as a beacon, guiding businesses in nurturing their audience from the first spark of awareness to the heights of brand loyalty.

But the journey doesn’t end with mapping out this funnel; the real magic lies in measuring and understanding the impact of your efforts.

How do you know if your strategies are turning heads, sparking interest, and sealing deals?

The answer lies in the numbers—ROI, ROAS, Cost per Sale, and other crucial KPIs that act as your compass in the vast sea of digital marketing. 

The Marketing Funnel Decoded:

1. Awareness: Casting the Net Wide

The journey begins with Awareness, the stage where your goal is to make your presence known far and wide. It’s about casting a net so wide that potential customers can’t help but notice you. But it’s not just about quantity; it’s about making the right kind of noise. Content marketing, social media buzz, and SEO are your best friends here, helping you reach a broad audience and make a memorable first impression.

2. Consideration: Engaging the Curious Mind

As we dive deeper into the funnel, we reach the Consideration stage. Here, your audience is intrigued; they’ve noticed you and are pondering whether you’re the answer to their needs. This is your chance to shine, to showcase your value through targeted content, email marketing campaigns, and tailored social media interactions. It’s about engaging with your audience in a meaningful way, answering their questions, and addressing their concerns.

3. Conversion: Sealing the Deal

The Conversion stage is where the magic happens. Your leads are on the brink of becoming customers, and it’s your job to nudge them over the edge. This is where your CTAs, landing pages, and sales tactics need to be at their sharpest. Personalized offers, seamless checkout processes, and compelling product presentations are your tools to turn consideration into action.

4. Loyalty: Cultivating Lasting Relationships

Last but certainly not least, we have the Loyalty stage. It’s one thing to win a customer, but it’s another to keep them coming back for more. Loyalty is about nurturing a relationship that extends beyond a single transaction. Think loyalty programs, exceptional customer service, and regular engagement through personalized content and offers. This is where you turn satisfied customers into brand ambassadors.

between Shopify and marketplace giants

Measuring Marketing Success: The Metrics That Matter

Understanding the effectiveness of your efforts through the marketing funnel is crucial, and that’s where KPIs come into play. Let’s break down the key metrics:

1. Return on Investment (ROI): The classic measure of success, ROI, tells you how much profit you’ve made from your marketing efforts relative to the cost. It’s the ultimate indicator of efficiency and profitability.

2. Return on Ad Spend (ROAS): Specifically focusing on advertising efforts, ROAS measures the revenue generated for every dollar spent on advertising. It’s a laser-focused metric that helps you gauge the effectiveness of your ad campaigns.

3. Cost per Sale: This metric breaks down how much you’re spending to acquire each sale, providing a clear picture of the efficiency of your sales process and marketing efforts.

4. Customer Lifetime Value (CLV): CLV looks beyond the initial sale, measuring the total value a customer brings to your business over the entirety of your relationship. It’s a long-term view that emphasizes the importance of customer retention and loyalty.

Implementing and Optimizing Your Strategy:

With a solid understanding of the marketing funnel stages and the key metrics to measure success, the next step is implementation and continuous optimization. This involves regularly reviewing your KPIs, experimenting with new strategies, and refining your approach based on data-driven insights.


Navigating the marketing funnel from Awareness to Loyalty is a journey fraught with challenges and opportunities. 

By understanding each stage and measuring your success with the right metrics, you can fine-tune your strategies for maximum impact. 


Soodo is an eCommerce Venture Builder for Purpose-driven Brands | We build & scale profitable DTC businesses.

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