Book a Demo
 August 8, 202322 min read

Marketing Funnel KPIs: Track and Optimise Your Sales Performance

To succeed when launching or selling a product, you need to understand your audience. And that does not mean just knowing who they are and what they are interested in, but also knowing what leads them from initial awareness of your brand to ultimate conversion.

This journey, often depicted as a marketing funnel, offers a comprehensive view of how potential customers interact with your brand and make their way through various communication stages before making a purchase.

Even though this depiction is extremely valuable to identify where your brand can act, it is the strategic insights it can provide that make it essential. Keeping track of the results of your marketing funnel can guide your business through marketing efforts, confirming or questioning the efficacy of your efforts are every stage.

In this article, we will discuss what the marketing funnel is, why it is essential for modern businesses, and how you can use it to gather insights to succeed further.

What is a marketing funnel?

A marketing funnel is a concept used to illustrate the stages that potential customers go through before making a purchase.

The marketing funnel helps businesses understand and optimise their marketing strategies for each stage, ensuring a smooth progression of potential customers from awareness to conversion.

The stages of a marketing funnel include:

1. Awareness

This is the top of the funnel where potential customers become aware of a product or service through various marketing channels such as advertisements, social media, or content marketing.

2. Interest

In this stage, people who have become aware of the product show interest and seek more information. This might involve engaging with content, subscribing to newsletters, or following the brand on social media.

3. Consideration

At this point, the potential customers are actively considering the product as a solution to their needs or problems. They might compare it with alternatives, read reviews, and evaluate features.

4. Intent

Here, the potential customers have a strong intention to purchase and are close to converting. They might add items to their cart, sign up for trials, or request price quotes.

5. Purchase

This is the bottom of the funnel, where the potential customer becomes an actual customer by making a purchase or taking the desired action, such as signing up for a subscription.

6. Post-purchase

After the purchase, the relationship with the customer doesn’t end. Brands focus on providing a good experience, addressing concerns, and encouraging repeat purchases or loyalty.

The importance of the marketing funnel

Since a marketing funnel serves as a roadmap for businesses to attract, engage, and convert customers, the strategy is crucial to improve marketing efforts and refine a customer journey.


The funnel provides a structured framework that guides businesses in understanding the journey a potential customer takes from initial awareness to final conversion. This understanding helps marketers create targeted and relevant content for each stage.


The funnel enables the segmentation of the audience based on their stage in the buying process. This segmentation allows marketers to tailor their messages, offers, and content to meet the specific needs and concerns of each group.


By focusing efforts on different stages of the funnel, businesses can allocate resources more efficiently. For instance, they can prioritise brand awareness efforts to attract a larger audience while dedicating more personalised attention to those on the cusp of conversion.


The funnel provides a clear way to measure the effectiveness of marketing strategies at each stage. By tracking the progression of potential customers through the funnel, businesses can identify where drop-offs occur and optimise those areas.

Conversion optimisation

Understanding the funnel helps identify bottlenecks and areas where potential customers might abandon the journey. This insight allows marketers to refine strategies, address pain points, and increase the likelihood of conversions.

Customer experience

A well-defined funnel helps ensure a consistent and positive customer experience throughout their journey. This includes providing relevant information, addressing concerns, and creating a smoother transition from one stage to the next.

ROI and revenue generation

By nurturing potential customers at different stages, businesses can increase the likelihood of conversions and maximise their return on investment. A well-optimised funnel can lead to higher sales and revenue.

Data-driven decisions

The funnel provides a data-driven approach to decision-making. Marketers can analyse metrics at each stage to identify trends, preferences, and behaviours, allowing them to make informed adjustments to their strategies.

The difference between a marketing and a sales funnel

The terms “marketing funnel” and “sales funnel” are closely related but refer to slightly different aspects of the customer journey.

The marketing funnel focuses on the entire process of attracting and guiding potential customers from the initial point of awareness to the point where they are ready to make a purchase decision. It encompasses a broader range of stages that involve both marketing and pre-sales activities.

The approach covers a range of touchpoints, from the initial exposure to the brand all the way to the decision to buy. It involves various marketing strategies and tactics to move people through each stage.

The sales funnel, on the other hand, is a narrower subset of the marketing funnel. It focuses specifically on the process of guiding potential customers through the stages that directly lead to a purchase.

In contrast, here are some of the stages of a sales funnel:


Identifying potential customers who have shown interest or intent.


Determining if the potential customer meets the criteria to be a good fit for the offering.


Providing more detailed information about the product or service to address specific needs and concerns.

Objection handling

Addressing any objections or concerns the potential customer might have.


Nudging the potential customer to make the final purchase decision.


Providing post-purchase support and ensuring customer satisfaction.

In essence, while the marketing funnel covers the entire customer journey from awareness to conversion, the sales funnel specifically hones in on the stages leading to the purchase decision. The sales funnel is more focused on the activities carried out by the sales team, whereas the marketing funnel involves a broader array of marketing efforts. Both funnels are interrelated and need to align well for a smooth and effective customer journey.

Marketing funnel KPIs

As we discussed, applying the marketing funnel strategy is more than understanding the different stages of a customer journey but also assessing metrics and acting according to these results.

The key metrics and KPIs for a successful product marketing funnel can help you measure and evaluate the effectiveness of your marketing efforts at each stage of the customer journey. Here are some important metrics for each stage of the funnel:

Awareness stage

1. Impressions

Impressions are the number of times your content or ad has been displayed to potential customers.

Analysing impressions at the awareness stage provides insights into the initial impact of your marketing efforts. It helps you assess brand exposure, content performance, targeting accuracy, and the efficiency of your budget allocation.

These insights allow you to make informed adjustments to your strategy, leading to more effective campaigns as potential customers journey through the marketing funnel.

2. Reach

Reach measures the number of unique individuals who have been exposed to your content or ads.

This KPI informs you about the extent of your audience exposure, validates your segmentation, assesses campaign efficiency, and guides content optimisation. These insights help you fine-tune your strategies for better engagement as you guide potential customers through the marketing funnel.

3. Click-through rate (CTR)

CTR is the percentage of people who clicked on your ad after seeing it.

Analysing Click-Through Rate at the awareness stage provides actionable insights into the effectiveness of your content, audience alignment, and messaging strategy. It helps you refine your content, adjust your targeting, and optimise your approach for better engagement as you guide potential customers along their journey through the marketing funnel.

Interest stage

1. Engagement rate

Engagement rate is the percentage of people who engaged with your content (likes, shares, comments) out of those who saw it.

Analysing this KPI provides valuable insights into the quality and relevance of your content, your audience’s preferences, and their level of connection to your brand. This understanding allows you to tailor your content strategy, strengthen relationships, and guide potential customers closer to making informed decisions as they progress through the marketing funnel.

2. Social media followers

It is important to look at the number of new followers gained on your social media channels. It can provide insights into the growth, engagement, and quality of your audience, helping you refine your content strategy, identify potential customers, and foster brand loyalty. These insights guide your efforts to nurture relationships and move potential customers through the marketing funnel toward conversion.

3. Website traffic

Knowing the number of people who access your website provides valuable insights into the effectiveness of your content, user engagement, and interest progression. It guides your content optimisation, audience targeting, and user experience enhancement efforts, ensuring a smooth transition from awareness to deeper engagement as potential customers journey through the marketing funnel.

Consideration stage

1. Time on site or page

Time on-site provides insights into engagement depth, content effectiveness, user experience, and consideration progression. This information helps you refine your content strategy, optimise user experience, and guide potential customers closer to making informed decisions as they move through the marketing funnel.

2. Bounce rate

The bounce rate is the percentage of visitors who leave your site without interacting further. Analysing this metric at this stage allows you to understand content relevance, user engagement, content quality, and user experience. It guides your efforts to optimise content, enhance user engagement, and create a more seamless journey for potential customers as they move through the marketing funnel.

3. Pageviews

Knowing the total number of pages viewed by visitors provides insights into engagement depth, content effectiveness, user behaviour, and consideration progression. This information helps you refine your content strategy, optimise user experience, and guide potential customers closer to making informed decisions as they move through the marketing funnel.

Intent stage

1. Add-to-cart rate

This is the percentage of visitors who add items to their shopping cart. This information helps you optimise your product offerings, pricing strategies, and user experience to guide potential customers through the final stages of the marketing funnel.

2. Sample requests

Analysing product sample requests at the intent stage provides insights into purchase intent, product interest, segmentation, and conversion potential. This information helps you refine your follow-up strategies, tailor your messaging, and guide potential customers towards making informed decisions as they move through the marketing funnel.

Conversion stage

1. Conversion rate

The conversion rate is the percentage of visitors who complete a desired action, such as making a purchase. The metric provides insights into the overall success of your marketing efforts, ROI, user experience, and the effectiveness of your strategies. It guides your optimisation efforts, content refinement, and user journey enhancements, ensuring that your marketing funnel is driving meaningful results and contributing to business growth.

2. Sales revenue

Analysing sales revenue provides critical insights into the financial impact of your marketing efforts, ROI, campaign effectiveness, and customer behaviour. It guides your resource allocation, strategy optimisation, and decision-making to ensure that your marketing funnel is driving not only conversions but also tangible business growth and success.

3. Average order value (AOV)

This KPI represents the average value of each order. Keeping an eye on your AOV can help you understand revenue potential, profitability, product strategies, and customer behaviour. It guides your efforts to enhance transaction values, optimise product offerings, and develop strategies that drive both short-term and long-term financial success.

4. Customer acquisition cost (CAC)

This is the cost of acquiring a customer. It provides insights into the financial efficiency of your customer acquisition strategies, ROI, channel optimisation, and customer quality. It guides your budget allocation, campaign decisions, and efforts to acquire customers in a way that ensures both growth and profitability.

Post-purchase stage

1. Customer retention rate

This measures the percentage of customers who continue to use your product or service over time. Analysing it helps your company understand long-term value, loyalty, profitability, and the overall health of your customer base. It guides your efforts to reduce churn, enhance customer experience, and create strategies that foster strong, lasting relationships with customers.

2. Churn rate

The churn rate is the percentage of customers who cancel or stop using your product. Analysing Churn Rate provides insights into customer retention strategies, customer experience, and revenue preservation. It guides your efforts to prevent customer attrition, enhance customer satisfaction, and create strategies that ensure a strong, lasting relationship with your customers.

3. Customer satisfaction

It is important that you assess your customers’ happiness with your product. The insights gathered from analysing this data can guide your efforts to enhance customer experience, build strong relationships, and create strategies that ensure high levels of customer satisfaction and long-term business success.


The marketing funnel can be a valuable approach to understanding your customers’ behaviour, preference and needs, shaping your communication efforts to reach your audience at every stage of their experience with your brand.

However, as we discussed throughout this article, just applying the funnel is not enough. Diving deep into KPIs will offer you insights that allow you to refine strategies, personalise your approach, and optimise your customers’ journey to purchase.

Analysing marketing funnel KPIs not only fosters growth through informed decision-making but also ensures a customer-centric approach that nurtures relationships sustains revenue streams, and fosters business longevity.

Run High-Converting

Product Campaigns

Find Out More