Eyal Rosen

Chief Marketing Officer

Breaking Down the Classic Digital Marketing Funnel

The digital marketing funnel shows the journey of a consumer from a website visitor to a paying customer. Businesses typically set up campaigns using Google (Adwords & GDN) and Facebook (Facebook Ads), and these campaigns then direct people who click on the advertisements to the business’s website. Consumers fuel the growth of every business, so businesses are always looking for ways to bring in more potential consumers.




Let’s take this theory and apply it to a real world example that’s relevant to nearly anyone, buying a home. The process would begin with a real estate agency setting up their digital marketing campaign via Google or Facebook in order to target potential home buyers. 


1. Website Visitor/Traffic: This part of the funnel shows the individuals who clicked on the agency’s online ad and have now reached the company’s website. While these people have shown an initial interest in the real estate agency, a large majority of these individuals do not leave their contact details because they don’t have a serious interest in buying one of the homes listed on the website. 


2. Leads: Once a website visitor requests to be contacted by leaving their contact details, that visitor becomes a potential customer or a lead. In our specific example of someone interested in buying a home, they’d likely submit their phone number and email on the website’s contact form, requesting more information about a specific property. From this point, the agency would reach out to the lead and understand that person’s specific interest and needs. For instance, someone could be looking for a three bedroom townhouse in Queens, NY with a budget of $350,000. 


3. Qualified Leads: Once a business is able to communicate with the lead, they can understand the lead’s specific preferences, which will help the business see if they have an appropriate offering. Sticking to our example, the real estate agency now has a potential customer looking for a three-bedroom townhouse with a budget of $350,000. If they have properties that fit these specifications then they can move one step closer to selling a property to the lead. 


But what if they don’t have anything to offer the lead? In this case the agency would have a serious potential customer with a real need that they would not be able to meet. This is one of the fundamental problems with the classic digital marketing funnel, as many business have a surplus of qualified and hot leads that they cannot help.  


4. Paying Customers: 

After all of this hard work businesses are finally rewarded with new paying customers. Our agency found their buyer a three-bedroom townhouse in Queens within their desired budget, and everyone’s happy. Sounds great right? The problem is that this happy new homeowner is actually more of the exception than the rule when it comes to the digital marketing funnel. 


According to Hubspot, only 3% of digital marketing campaign visitors actually convert to paying customers. This means that 97% of the money businesses spend on acquiring new customers is going unused. 


These statistics indicate that while digital marketing campaigns succeed in driving traffic to a company’s website, they don’t yield enough qualified leads for businesses, and most consumers fall short of finding what they’re originally looking for. Businesses are also left with a significant amount of qualified leads that are seriously seeking a specific product or service. 


This inherent problem in the web marketing funnel opens up a huge opportunity for LeadCoin. But more on that in future blog posts. 



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