How To Create an Effective Lead Funnel (With Tips)

By Indeed Editorial Team

Published May 17, 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Lead funnels are useful for marketing teams who are trying to increase their customer base. Marketing teams can use lead funnels to create high-quality leads, or people who are more likely to invest in a product or service from the company. If you work in marketing, you may want to know more about how implementing a lead funnel can improve your marketing strategy. In this article, we cover what a lead funnel is, what the stages are, how to create one and tips for implementing an effective lead funnel.

Related: 12 Marketing Tips for Your Marketing Campaign

What is a lead funnel?

A lead funnel is a marketing term for how strangers to the brand eventually become customers. Lead funnels usually try to define the various steps required for a person to become a high-quality lead. For example, a lead funnel might examine how a stranger to the brand can discover the company, then what will convince them to consume the company's content and eventually purchase something. Though the actual sale is not part of the marketing team's duties, brand loyalty and profit increase are the motivation for implementing lead funnels.

Related: How To Make Funnels for Boosting Your Sales and Conversions

What are the stages of a lead funnel?

There are usually four stages to the typical lead funnel, though various marketing teams and companies may include more or fewer steps, or define them differently based on how they apply to their target customers. These are the four basic stages of lead funnels that can apply to most marketing situations:


Awareness is the part of the process in which the consumer recognized their need for a product or service. They may search the internet for information or to help them decide. For example, someone needs to buy a new frying pan and they want to find one that's going to be more useful than their last, so they search the internet for the companies selling the best frying pans.


This is the stage of the lead funnel in which the potential customer develops an interest in the company. Their search for information may bring them to an article on your website in which you explain the differences between various frying pans options. If, for example, your company is selling a multi-functional, eco-friendly frying pan, you may include it in your list of options. During this part of the lead funnel, you may offer the potential lead a discount for signing up for your email subscription.


During this part of the lead funnel, the person makes decisions. For example, they may decide if they actually want to buy a new frying pan, what they value in a new pan and whether they are going to buy from your brand specifically. If your brand has marketed well up to this point, the consumer should have had the opportunity to learn about the benefits of your product or service.


When the customer places an order for one of your frying pans or moves to a different company's website, they're in the action phase. To avoid seeing your potential leads back out at this phase of the funnel, be sure to offer them incentives for making the purchase, like discounts or loyalty points.

Related: Lead vs. Prospect (With Tips for How To Use Them)

How to create a more effective lead funnel

You can follow these steps to create a more effective lead funnel:

1. Understand your target audience

Knowing your target audience is helpful in developing your company's website and creating an effective plan to attract customers. Understanding your ideal consumer allows you to create a landing page that may resonate most with them, from the aesthetic qualities to the language you use.

2. Create convincing content

Convincing content is key in branding yourself and building a relationship with your potential leads. These are some forms of content you can create:

  • Company email marketing: After the first time a potential lead visits your site, you can build a relationship with them by asking them to subscribe to your emails. Usually, offering a discount for their subscription may encourage them to join the email list.

  • Social media marketing: Promoting your company on social media is another way to create a brand and develop trust between your organization and its consumers.

  • Downloadable materials: Offering printable material and ebooks is a great way to show your potential lead that you're interested in offering them value.

3. Communicate genuinely with leads

Sending your lead a welcome email and thanking them for their subscription is a great way to begin communicating genuinely. A persistent email marketing campaign and social media presence can be parts of this communication.

4. Add value to their experience

Offering discounts, loyalty points and referral programs may help you add value to the lead's experience. Content like printables, e-books and other downloadable content can also add value to their experience with your brand. Ensure that all contact between the lead and your company is positive.

5. Send high-quality leads to sales

Once a lead has moved through the steps of the lead funnel, they're likely a high-quality lead. They're very familiar with the brand and may decide to purchase a product or service from you, or they already have. During this part of the lead funnel, you can have your sales team cross-sell or upsell to the customer to offer them more value in other services or a higher tier product.

Related: Understanding the Marketing Funnel and How To Use It

Tips for implementing lead funnels

These are some helpful tips you can use to help implement an effective lead funnel for your company or organization:

  • Add links to your content: Adding links within your content to other articles or pages prompts your potential lead to explore your content and become more familiar with your company. Including links to other content may keep them on your page longer, increasing the chance that they'll invest in your products or services.

  • Use marketing software: Taking advantage of software that can automate your emails or help you create content can make implementing a lead funnel easier.

  • Prioritize customer service: Though this isn't strictly part of a marketing team's job, working with an organization that priorities customer service makes it easier to retain the customers you gain through the lead funnel.

  • Create mobile content: Many consumers use their cell phones to find and consume your content. Making your content mobile-friendly might increase your chances of convincing leads to spend more of their time on your page.

  • Assess your strategy: Tracking and analyzing your lead funnel to identify potential flaws is the best way to make it more effective. Ensure that your lead funnel is having positive effects by tracking your engagement before and after implementing it.

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