The Marketing Funnel Model

In funnel model, we consider people being in the big funnel where by marketing activities targeted to these people will make them flow down the funnel. As the flow continues, the contraction also takes place. Contraction start when doing marketing, the first people to respond to the marketed products or services are called “Leads” Leads are defined as people who shown response through visit, calls, email, text message, visiting the website etc. for the marketing campaign that just reached them. These people normally visit your business place with question and other inquiries. Other call and other write emails. Leads normally do not buy anything unless followed up by sales personnel. After good selling transaction program to these leads, some of them may respond by doing transaction to some of business products or services. When these leads did some transactions they are now called new customers. If good customer care is done to them, they will come back to buy and at this stage, they are converted to regular or repeat customers.

The funnel model assume that the target markets are new and targeted to get new customers

General Population

1. General Population “P” targeted with marketing campaigns to obtain leads  Eg P = 300,000
2. Leads “L” are prospective customers who respond to marketing activities Eg.L= 5,000
3. New customers “NC” are leads who after selling transaction are converted into new customers Eg NC = 150
4. Repeat Customers “RC” are new customers who are well cared and decided to repeat buying your products of services; Eg. RC = 50
5. Dropout Customers “DC” are customers who stopped buying your products because of dissatisfaction

Business Healthy Algorithm (BHA)