SALES FUNNEL: WHAT IT IS AND HOW TO BUILD IT STEP BY STEP

17 September 2025

SALES FUNNEL: WHAT IT IS AND HOW TO BUILD IT STEP BY STEP

SALES FUNNEL — is a guided customer journey from the first contact with your brand to the purchase and repeat business.

In digital marketing, a funnel helps identify where leads drop off, personalize communications, optimize budget, and grow revenue.

Below is a practical guide from Digital Queen: TOFU/MOFU/BOFU structure, stage-specific content, tools, metrics, and common mistakes.

What is an online sales funnel and why is it important?

A sales funnel describes the user’s sequence of actions:

awareness → interest → decision → purchase → retention

A well-designed funnel allows you to:

 • Identify bottlenecks (where leads “drop off”)

 • Match content and offers to each stage

 • Optimize ad spend and improve conversion rates

 • Automate nurturing communications and lead management

 • Drive repeat sales and loyalty programs

TOFU, MOFU, BOFU Stages: Goals, Content, KPIs

TOFU (Top of the Funnel):

Awareness

Goal: attract attention and collect initial traffic/leads.

Content: blog articles, videos, case studies, social media, lead magnets (guides, checklists, webinars).

KPIs: reach, traffic, ER, subscriptions, cost per lead (CPL) from lead magnet.

MOFU (Middle of the Funnel):

Interest and Trust

Goal: warm up leads to a “ready-to-buy” state.

Content: case studies, comparison reviews, analytics, personalized email sequences, remarketing.

KPIs: email open/click rates, time on page, depth of page view, consultation requests, CPL/CPA.

BOFU (Bottom of the Funnel):

Decision and Purchase

Goal: convert leads into paying customers and increase average order value.

Content: sales offers, service demos, testimonials, guarantees, CTAs.

KPIs: conversion to inquiry/contract, average order value, ROI/ROAS, lead processing speed.

How the funnel increases revenue:

 • TOFU expands the top of the funnel and grows the lead base

 • MOFU builds trust and increases the share of leads that convert to inquiries

 • BOFU improves conversion rates and increases average order value through up/cross-sell

 • After purchase — loyalty programs, follow-ups, special offers: retention is cheaper than acquisition and helps stabilize revenue

Step-by-step: how to build a sales funnel

 1. Define your target audience and segments.

Who buys, what are their pain points/motivations/objections?

 2. Build core content for each stage.

 • TOFU: articles, videos, case studies, lead magnets

 • MOFU: analytics, comparisons, personalized emails

 • BOFU: sales offers, demos, reviews, cost calculators

 3. Automate communications.

HubSpot, ActiveCampaign, Mailchimp — lead scoring, triggers, and personalized sequences

 4. Set up end-to-end analytics.

GA4 + CRM (HubSpot, Salesforce, Zoho): traffic sources, attribution, lead-to-deal journey

 5. Run A/B tests.

Headlines, offers, CTAs, landing pages, lead magnet formats

 6. Build a post-sale strategy.

NPS/CSAT, loyalty programs, referral mechanisms, regular check-ins

Automation Tools

 • CRM: lead tracking, pipeline, reporting

 • Marketing automation: HubSpot, ActiveCampaign — emails, remarketing, segmentation

 • Analytics: Google Analytics 4 — behavior, conversions, funnels

 • Ads: Google Ads, Facebook/Instagram Ads — traffic and remarketing tailored to stages

 • Social media: Instagram, LinkedIn, TikTok — content, reach, retargeting

Adaptation for B2C and B2B

 • B2C: fast decisions, simplified path to purchase, promo mechanics

 • B2B: long cycle, educational content, webinars, case studies, personalization

Metrics: how to measure and optimize your funnel

 • Conversion by stage: TOFU → MOFU → BOFU (identify bottlenecks)

 • CPA/CAC: customer acquisition cost

 • Average order value & LTV: customer lifetime value

 • Lead response time: speed to first contact

 • Abandonment rate: incomplete forms/carts/inquiries

Optimization tips: simplify UX, speed up responses, increase content relevance, improve offers, test hypotheses

Common mistakes and how to avoid them

 • Complicated UX and too many steps before the CTA

 • Same content across all funnel stages

 • No analytics or attribution setup


• Lack of nurturing automation

 • Ignoring existing customers and referral potential

How to fix a “broken” customer journey

 • Analyze the data: where and why leads are lost

 • Simplify the path to action (form, CTA, clear USP)

 • Rebuild content tailored to each stage and segment

 • Run A/B tests and document what works

 • Launch retention and referral mechanics

CONCLUSION:

SALES FUNNEL (THE CUSTOMER’S PATH FROM “HELLO” TO “I’M BUYING”) IS NOT JUST A TERM — IT’S A SCALABLE GROWTH SYSTEM.

CLEAR SEGMENTATION, STAGE-SPECIFIC CONTENT, COMMUNICATION AUTOMATION, AND END-TO-END ANALYTICS LEAD TO PREDICTABLE LEADS AND REVENUE.

CONTINUOUS TESTING AND OPTIMIZATION TURN THE FUNNEL INTO A RELIABLE SOURCE OF SALES AND LOYALTY.