Mastering Marketing Funnel Strategy with Market Research

In the dynamic world of digital marketing, understanding and optimising your marketing funnel strategy is paramount. As the bridge between potential customers and conversions, the marketing funnel serves as a roadmap to customer acquisition. But how do you ensure that this roadmap is efficient, effective, and tailored to your audience? Enter the power of market research. By harnessing robust tools, actionable insights, and expert opinions, marketers can refine each stage of the funnel, ensuring a seamless journey for potential customers. 

 

Understanding the Marketing Funnel Strategy

 

The Role of Market Research in Funnel Optimisation

Market research isn’t just a tool for product development or advertising; it’s a critical component in optimising your marketing funnel strategy. By understanding your audience’s needs, preferences, and pain points, you can tailor your funnel stages to resonate more deeply, driving conversions and loyalty.

Source: Crunchbase

Primary vs. Secondary Market Research

• Primary Research: This involves collecting data directly from your target audience. It’s tailored to your specific needs, providing fresh insights. For funnel optimisation, you might conduct surveys to understand why visitors drop off at a particular stage or interview customers to get feedback on their buying journey.
• Secondary Research: Here, you’re leveraging existing data, whether it’s market reports, competitor analyses, or industry studies. For your funnel, this could mean studying industry benchmarks for conversion rates or analysing competitor funnels to identify gaps in your own.

Advantages of Primary Research:

• Tailored to your specific needs
• Provides fresh, up-to-date insights
• Can delve deep into specific issues or challenges

Disadvantages of Primary Research:

• Can be more expensive
• Time-consuming
• Requires more resources

Advantages of Secondary Research:

• Quicker and often less expensive
• Can provide a broad overview of the market
• Multiple studies can provide a more comprehensive view

Disadvantages of Secondary Research:

• Might not be as specific or tailored
• Data might be outdated
• Limited by the scope of existing studies

When to Use Each: Consider using primary research when you need specific insights tailored to your business or when addressing a new challenge or market segment. On the other hand, secondary research is ideal for getting a broad overview of the market or when resources are limited.

A SaaS company wants to understand why users are dropping off at a particular funnel stage. They might conduct primary research in the form of user testing to identify friction points. Simultaneously, they could leverage secondary research to understand industry benchmarks for conversion rates at similar funnel stages.

Platforms & Timing:

• Platforms: Utilise platforms like SurveyMonkey for surveys, Zoom for interviews, or tools like SEMrush for competitor funnel analysis.
• Timing: Conduct market research both before launching a new funnel strategy and periodically after. Pre-launch research ensures your strategy is on target, while periodic check-ins help you refine and adjust based on real-world performance.

A B2B SaaS company looking to improve its demo sign-up rates might conduct primary research in the form of user testing to identify friction points in the sign-up process. They could then supplement this with secondary research on best practices for demo sign-up flows in their industry.

Bottom of the Funnel Keywords

Step-by-Step Implementation Guidelines:

Understand the Importance: Bottom of the funnel keywords indicate a high buying intent. These are the terms potential customers use when they’re ready to make a purchase or take a significant action. Optimising for these keywords can significantly boost your conversion rates.

Finding and Ranking:

• • Brainstorm: Start with a session involving your marketing and sales teams. They’re closest to your customers and will have insights into the terms prospects use late in the buying journey.
  • Use Tools: Leverage tools like Clearscope for content optimisation, Ahrefs for keyword research, and SEMrush for competitive analysis. These tools can help identify high-value bottom-of-the-funnel keywords your competitors might be overlooking.

Optimise Your Content: Once you’ve identified your keywords, integrate them naturally into your landing pages, product pages, and other conversion-focused content. Ensure the content addresses the specific needs and concerns someone using that keyword might have. A SaaS company offering email marketing tools might find through Ahrefs that a high-converting bottom-of-the-funnel keyword is “best email marketing software for e-commerce”. They could then create a dedicated landing page addressing the specific needs of e-commerce businesses, optimised around that keyword.

 

Leveraging Market Research for Funnel Optimisation

 

Importance of Market Research

Market research isn’t just a luxury; it’s a necessity. In the realm of marketing funnel strategy, it’s the compass that guides your decisions, ensuring you’re not just shooting in the dark.

• Decision-making: Armed with data, you’re making informed choices. By understanding your audience’s preferences, pain points, and purchasing habits, you can tailor your funnel stages to resonate more deeply, driving conversions and loyalty.
• Understanding Your Audience: It’s not enough to know your product; you need to know who you’re selling it to. Dive deep into their demographics, psychographics, and online behaviours to craft a funnel that speaks directly to them.
• Competitive Advantage: In a saturated market, the one with the most insights wins. By leveraging market research, you’re staying one step ahead, anticipating market shifts, and adjusting your strategy accordingly.
• Risk Minimization: Every marketing move comes with inherent risks. But with robust market research, you’re not just mitigating these risks; you’re turning them into opportunities. For instance, if 90% of market researchers say they use online surveys regularly, as per Statista, then there’s a clear indication of its effectiveness in gathering actionable insights.

Consider a B2B SaaS company looking to penetrate a new market segment. Instead of blindly creating campaigns, they conduct thorough market research to understand the segment’s unique needs, challenges, and preferences. This allows them to craft a marketing funnel strategy that addresses these specific pain points, leading to higher engagement and conversion rates.

Market Research Methods for Funnel Optimisation

1. Surveys: The Power of Direct Feedback

Surveys are a marketer’s best friend when it comes to gathering direct feedback. By using online platforms, you can reach a broad audience and gather insights quickly. 

Start with platforms like SurveyMonkey or Typeform. Craft questions that directly relate to your marketing funnel strategy. For instance, ask about the content preferences at different funnel stages or the effectiveness of your CTAs.

2. Interviews: Dive Deeper into Customer Psyche

While surveys provide quantitative data, interviews give you qualitative insights. They allow you to dive deep into the customer’s psyche, understanding their motivations, pain points, and desires. 

Schedule one-on-one interviews with customers who’ve dropped off at various funnel stages. Their feedback can provide invaluable insights into where your strategy might be lacking.

3. Focus Groups: Collective Feedback for Broader Insights

Focus groups are a fantastic way to gather collective feedback. With 93% of market researchers using online/video focus groups more than they did three years ago (Take Note), it’s evident that this method is gaining traction. It allows for dynamic discussions, offering broader insights than individual interviews.

Use platforms like Zoom or Microsoft Teams to host virtual focus groups. Ensure you have a skilled moderator to guide the discussion towards your marketing funnel strategy objectives.

4. Observational Methods: Watch and Learn

Sometimes, the best way to understand customer behaviour is to simply observe. This method involves watching how users interact with your content, website, or product without direct interaction. It’s a goldmine for understanding user experience and identifying potential friction points in your funnel.

Tools like Hotjar offer heatmaps and session recordings. Monitor how users navigate your site, where they spend the most time, and where they drop off. Adjust your marketing funnel strategy based on these observations.

 

Diving Deep into Funnel Stages

 

Loyalty and Advocacy: Beyond the Conversion

1. Retention Strategies: Keep Them Coming Back

Once a customer has been acquired, the real work begins. It’s far more cost-effective to retain an existing customer than to acquire a new one. Implement post-purchase engagement strategies, such as personalised email campaigns or loyalty discounts, to keep them interested.

Segment your email list based on purchase history. Send personalised product recommendations or content that adds value to their purchase.

2. Loyalty Programs: Rewarding Consistent Engagement

Loyalty programs are a tried-and-tested method to encourage repeat business. By offering rewards for consistent engagement or purchases, you’re incentivising customers to stay loyal to your brand.

Consider a point-based system where customers earn points for every purchase, which can be redeemed for discounts or freebies. Promote this program prominently on your website and through your marketing channels.

3. Referral Marketing: Leverage Word-of-Mouth

There’s no better marketing than a satisfied customer singing your praises. Encourage this by setting up a referral program. Offer incentives for customers who refer friends or colleagues to your business.

Use tools like ReferralCandy or Ambassador to set up and manage your referral program. Ensure the rewards are enticing enough to motivate customers to refer others.

4. Community Building: Foster a Sense of Belonging

Building a community around your brand can significantly boost loyalty. Engage with your audience on social media, host webinars or workshops, and encourage discussions around your product or industry.

Set up a Facebook group or a forum on your website. Regularly engage with members, host Q&A sessions, and share exclusive content to keep the community active and engaged.

Remember, a robust marketing funnel strategy doesn’t end at conversion. By focusing on loyalty and advocacy, you’re ensuring a steady stream of repeat business and referrals, maximising your ROI in the long run.

Funnel Drop-offs and Recovery

Every marketer’s nightmare is seeing potential customers drop off at various stages of the funnel. But with the right strategies, you can identify these leak points and implement recovery campaigns to bring them back into the fold.

Identify Leak Points: Use analytics tools to pinpoint where potential customers are dropping off. Is it the sign-up page? The checkout process? Once identified, delve deeper to understand the reasons. Maybe the sign-up process is too lengthy, or perhaps the checkout page isn’t mobile-friendly.

Retargeting Strategies: Implement retargeting ads to re-engage those who’ve shown interest but didn’t convert. For instance, if a potential customer added a product to their cart but didn’t purchase, a retargeting ad could offer them a limited-time discount to incentivize the purchase.

Feedback Loops: Encourage feedback from users who abandoned the funnel. This could be through exit surveys or follow-up emails. Their insights can provide invaluable information on areas of improvement.

Recovery Campaigns: Design email campaigns targeting those who’ve shown interest but didn’t take the desired action. Personalise these emails based on the user’s activity. For a B2B SaaS company, if a user signed up for a trial but didn’t onboard, a recovery email could offer a personalised demo or a guide to help them get started.

 

 Advanced Market Research Strategies and Tactics

 

Integrating Social Listening

In today’s digital age, your brand is being talked about, whether you’re part of the conversation or not. Social listening allows you to monitor brand mentions and leverage feedback to adjust your funnel strategies.

• Monitor Brand Mentions: Tools like Brandwatch or Mention can help you keep track of where and how your brand is being discussed. This isn’t just about counting mentions; it’s about understanding the sentiment behind them.
• Leverage Feedback: Positive feedback can be amplified, and negative feedback can provide insights into areas of improvement. For instance, if a B2B SaaS company finds that users are praising a particular feature on social media, they can highlight this feature in their marketing campaigns.
• Adjust Funnel Strategies: Based on the feedback, adjust your strategies. If potential customers are dropping off because they find a particular step confusing, use the feedback to simplify and improve that step.

Dark Social and Funnel Optimisation

You might be wondering, what is “Dark Social”? It’s not as ominous as it sounds. Dark Social refers to the social sharing of content that occurs outside of what can be measured by traditional analytics platforms. This includes links sent via private message, email, or even some mobile applications. Understanding dark social traffic is crucial because it can significantly impact your funnel optimization.

The Challenge: A significant portion of your traffic might be coming from dark social, and you don’t even know it. This means you’re potentially missing out on optimising a large segment of your audience.

The Solution: Here’s how you can shine a light on dark social and optimise your funnel:

1. Tagging and Tracking: Use UTM parameters for your links. This way, when someone shares your link privately, you’ll know where it originated. For instance, if you’re sharing a link in a newsletter, tag it appropriately. This will help you identify if the traffic is coming from the newsletter or if it’s been shared privately.
2. Educate Your Audience: Encourage your users to use share buttons on your content. This might sound simple, but it’s effective. When users use share buttons, it’s easier to track the source of the share.
3. Leverage Analytics Tools: Tools like GetSocial or ShareThis can help you track dark social traffic more effectively. They provide insights into how your content is being shared privately.
4. Adjust Your Funnel Strategy: Once you have a clearer picture of your dark social traffic, adjust your funnel strategies. Maybe you need more compelling CTAs for this audience or different content altogether.

Imagine you’ve written a comprehensive guide on a new software feature. It’s being shared widely within private Slack groups of tech companies because it’s so valuable. By understanding this dark social traffic, you can create more such content and even consider hosting webinars or workshops for these tech companies.

 

Measuring and Optimising Funnel Performance

 

Importance of Funnel Metrics

• Understanding KPIs: Key Performance Indicators (KPIs) are the metrics that matter most to your business. For a SaaS company, this could be the number of trial sign-ups or the conversion rate from trial to paid users.
• Aligning Metrics with Business Goals: It’s not enough to just track metrics. They need to align with your broader business goals. If your goal is to increase revenue, then focus on metrics that directly impact revenue, like average transaction value or customer lifetime value.
• Continuous Improvement: The world of digital marketing is always evolving. What worked yesterday might not work today. Regularly review and adjust your metrics to ensure they’re still relevant. For instance, if you find that a particular metric is no longer driving results, it might be time to pivot.
• Statistics to Ponder: Businesses are acting 20-25x faster than usual when it comes to making certain changes (McKinsey). This underscores the importance of agility in today’s fast-paced digital landscape.

Tools for Funnel Analysis: A Deep Dive into the Digital Arsenal

When it comes to optimising your marketing funnel strategy, you’re not left in the dark. There’s a plethora of market research tools available to help you dissect, analyse, and improve every stage of your funnel. Let’s explore some of the most impactful ones.

1. Google Analytics: The Digital Marketer’s Best Friend

• What it does: Google Analytics provides insights into your website’s traffic, user behaviour, and conversion metrics.
• How to use it: Set up conversion goals to track how users move through your funnel. This will help you identify where potential customers drop off and where you need to focus your optimisation efforts.
• Use case: Track which content pieces drive the most qualified leads, helping you refine your content mapping by stage.

2. Hotjar: Visualising User Behaviour

• What it does: Hotjar offers heatmaps, session recordings, and surveys to understand how users interact with your site.
• How to use it: Use heatmaps to see where users click, move, and scroll. This can help you identify which parts of your site are most engaging and which might be causing confusion.
• Use case: Identify which CTAs or sections of a landing page are most effective in driving conversions, aiding in conversion rate improvement.

3. Mixpanel: Advanced User Analytics

• What it does: Mixpanel allows you to track user interactions with your product, giving insights into retention, engagement, and conversion.
• How to use it: Segment your audience based on behaviour, allowing you to send personalised marketing communication to different user groups.
• Use case: Understand which features of your software are most used and which might need more onboarding support.

4. Funnel Visualisation Tools: Seeing is Believing

• What they do: These tools provide a visual representation of how users move through your marketing funnel.
• How to use them: Compare the actual user journey to your ideal customer journey, highlighting areas for improvement.
• Use case: Identify stages in the funnel where potential leads might need more nurturing, helping in multi-channel lead nurturing.

5. Heatmaps: Hot Spots and Cold Zones

• What they do: Heatmaps show where users click, move, and scroll on your site.
• How to use them: Identify which parts of your site are getting the most attention and which parts might be overlooked.
• Use case: Refine landing page designs based on user behaviour, ensuring key information and CTAs are in the ‘hot spots’.

Conclusion

 

The marketing funnel is more than just a theoretical concept; it’s the lifeblood of effective digital marketing. By leveraging market research, understanding your audience, and utilising the right tools, you can transform your funnel into a conversion powerhouse. Embrace feedback, continuously refine your strategies, and remember that in the ever-evolving digital landscape, adaptability is key.