Purchase funnel - Wikipedia

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The purchase funnel, or purchasing funnel, is a consumer-focused marketing model that illustrates the theoretical customer journey toward the purchase of a good ... Purchasefunnel FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Modeloftheoreticalcustomerjourneytowardpurchaseofagoodorservice Anexampleofatypicalpurchasefunnel Thepurchasefunnel,orpurchasingfunnel,isaconsumer-focusedmarketingmodelthatillustratesthetheoreticalcustomerjourneytowardthepurchaseofagoodorservice. In1898,E.St.ElmoLewisdevelopedamodelthatmappedatheoreticalcustomerjourneyfromthemomentabrandorproductattractedconsumerattentiontothepointofactionorpurchase.[1]St.ElmoLewis'ideaisoftenreferredtoastheAIDA-model,anacronymthatstandsforAwareness,Interest,Desire,andAction.Thisstagedprocessissummarizedbelow: Awareness–Whenaprospectivecustomerbecomesawarethatasellerofferaproduct,solution,orservicethatwillmeettheirneeds,theyareintheawarenessstage.Thiscanhappenthroughadvertising,wordofmouth,prospectresearch,oranyofseveralotherchannels.Afterbecomingaware,theprospectwillbegintoconsiderhowtheycanfindanappropriatesolutiontotheirproblem. Interest—Whenaprospectexpressesinterestinaservice,theygothroughanevaluationprocessinwhichtheyseekmoreinformation,comparetheofferingsofvariouscompetitors,andbecomemoreeducatedaboutthefactorssurroundingtheoffering.Atthislevelasellermustprovidetheprospectwithacompellingargumentfortheeffectivenessoftheirproduct. Desire–Gettingaprospecttomakeadecisionboilsdowntogivingthemalltheinformationtheyneed,answeringanyquestionsthatareholdingthembackfromtakingaction,assuaginganyfearstheymayhave,andconvincingthemthattheactionthey’reabouttotakewillresultinsatisfaction.Thisisthelevelatwhichthesellermustdemonstratehisauthorityandprovethemthatitsthebestoption. Action–Thefinalstageofthesalesfunnelisaction.Thisisthepointatwhichtheprospectivecustomercompletestheprocessbybecominganactivecustomer.Itispossibletoconvertaone-timecustomerintoarepeatcustomerasanadditionalstagetotheactioncomponent.Bygivingthecustomerexactlywhattheywantandmore,youcankeepthemcomingbackandpossiblyraiseawareness,attractingnewprospectsintothesalesfunnel. Thepurchasefunnelisalsooftenreferredtoasthe"customerfunnel","marketingfunnel","salesfunnel",or"conversionfunnel".TheassociationofthefunnelmodelwiththeAIDAconceptwasfirstproposedinBondSalesmanshipbyWilliamW.Townsendin1924.[2] Thisearlymodelhasbeenmodifiedbymarketingconsultantsandacademicstocatertothemoderncustomerandisnowreferredtoinmarketingasthe"purchasefunnel"or"buyingfunnel".Manydifferentbusiness-to-consumerpurchasemodelsexistinmarketingtoday,butitisgenerallyacceptedthatthemodernbusiness-to-businesspurchasefunnelhasmorestages,considersrepurchaseintent,andtakesintoaccountnewtechnologiesandchangesinconsumerpurchasebehavior.[3][4]Asamodel,thebuyingfunnelhasbeenvalidatedinavarietyofdomains,includingsearching,[5]keywordadvertising,[6]andleadgeneration,[7]butalsomodifiedtoincludepreviouslyunconsideredstepsandmetricssuchasoutboundsales,Internetimpressions.[8] Thepurchasefunnelconceptisusedinmarketingtoguidepromotionalcampaignstargetingdifferentstagesofthecustomerjourneyandasabasisforcustomerrelationshipmanagement(CRM)programsandleadmanagementcampaigns. Conversionfunnel[edit] Mainarticle:Conversionfunnel Similartoapurchasefunnel,"conversionfunnel"isatechnicaltermusedine-commerceoperationstodescribethetrackaconsumertakesthroughanInternetadvertisingorsearchsystem,navigatingane-commercewebsiteandfinallyconvertingtoasale. Themainelementsofanonlinepurchase/salesfunnelare: Trafficsources(i.e.SEO,PPC,referraltraffic,etc.) Topofthefunnel(TOFU)whichcoincideswiththetraditionalawarenessstage Middleofthefunnel(MOFU)describingprospectsintheconsiderationstage Bottomofthefunnel(BOFU)correspondingtolatterlife-cyclestages(i.e.decision,conversion,purchase) Re-engagementpaths–strategiesandtechniquesmeanttorecoverlostprospects/leads,usuallythroughretargetingadsoremailmarketing Themodernconversionfunnelcanhavemanyentrancepoints,meaningpeoplecanenteratanystageoftheirlife-cycle,theycanleaveandenteragain.Thisiswhyaneffectiveonlinemarketingstrategyrequiresanomnichannelapproachwhichcombinesvarioustrafficsources,campaignsandre-engagementpaths,andmakesthemworkasoneinordertofinalizethepurchaseandevenleadtoloyalcustomersorbrandadvocates. Seealso[edit] DAGMARmarketing Salesprocess Customerrelationshipmanagement Customerlifecyclemanagement Leadgeneration References[edit] ^E.K.Strong,Jr.ThePsychologyofSellingandAdvertising.NewYork1925,p.349andp.9. ^"Thesalesmanshouldvisualizehiswholeproblemofdevelopingthesalesstepsastheforcingbycompressionofabroadandgeneralconceptoffactsthroughafunnelwhichproducesthespecificandfavorableconsiderationofonefact.Theprocessiscontinuallyfromthegeneraltothespecific,andthevisualizingofthefunnelhashelpedmanysalesmentoleadacustomerfromAttentiontoInterest,andbeyond"(p.109). ^Court,D.Elzinga,D.,Mulder,S.andVetvik,O.J.,"TheConsumerDecisionJourney",McKinseyQuarterly,June2009,Online:http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey ^BrandingInTheDigitalAge-You'reSpendingYourMoneyinAlltheWrongPlaces ^Kules,Bill."Speakingthesamelanguageaboutexploratoryinformationseeking."InformationSeekingSupportSystems13.5(2008):17. ^Jansen,B.J.andSchuster,S.(2011)BiddingontheBuyingFunnelforSponsoredSearchCampaigns.JournalofElectronicCommerceResearch.12(1),1–18. ^Wilcox,G.,&Sussman,K.(2014).Lead-generatingsocialmediastrategiesusingthesocialmediaperformancemodel:TheB2Bconnection.JournalofDigital&SocialMediaMarketing,2(1),70–78. ^"HowTheB2BMarketingFunnelWorks".www.bizible.com.Retrieved2016-01-06. 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