What is a marketing funnel and how to use it in a small business
What is a marketing funnel?
A marketing funnel describes a customer's journey from the moment they hear about you until they make a purchase and possibly recommend you further. The term 'funnel' captures the essence: a lot of people enter at the top, but only a fraction becomes your end customers.
For entrepreneurs and sole proprietors, a funnel is primarily a useful way of thinking. It helps answer questions like: Why don't people contact me even though I'm active on social media? or Why do visitors come to my website but no one reaches out?
Three funnel stages: TOFU, MOFU, BOFU
The funnel is divided into three parts, which marketers denote with acronyms from their English origin:
TOFU – Top of the Funnel (awareness) People are just finding out you exist. They're not looking for a specific solution, they just happen to come across your content. The goal is to capture attention and interest.
MOFU – Middle of the Funnel (consideration) People know what they are dealing with and are considering different options. They compare offers, read references, and look for reasons to trust you.
BOFU – Bottom of the Funnel (decision) The customer is ready to act. They need only a final push – a clear offer, easy contact, or a review to dispel doubts.
For a small business or sole proprietor, a funnel works in a simplified form. You don't need an expensive CRM system or a marketing team. Just one type of content for each stage. For example, a blog or social media for TOFU, a newsletter or case study for MOFU, and a contact form or price list for BOFU. The principle is important, not the tools.
How a funnel looks in practice – example of an accountant
Imagine a freelance accountant who wants to attract new clients online.
TOFU: She writes short posts on LinkedIn about the common mistakes sole proprietors make in tax record keeping. People are interested, share it, and comment. They start following her.
MOFU: She prepares a simple e-book "Checklist for Sole Proprietors Before Tax Filing" and offers it for free in exchange for an email. This builds a list of people genuinely interested in her topic, and she sends them more useful tips.
BOFU: On her website, her services, pricing, and a "Schedule a Free Consultation" button are clearly described. People from her mailing list who are looking for an accountant contact her.
Example:
A café in a small town wants to attract new customers. TOFU: Instagram with photos of latte art and stories from the operation. MOFU: Loyalty card or a contest for a voucher – people subscribe to newsletters. BOFU: Offer
Where small businesses often go wrong
The biggest mistake is to skip the first two stages and push straight for the sale. Advertising with the text "Buy our services" doesn't work if the customer doesn't know you and has no reason to trust you.
The second, very common mistake, is the opposite: a business makes great content and has thousands of followers, but it's unclear what to order from them and how to do it. BOFU is completely missing.
Beware of spreading too thin: handling too many channels at once is counterproductive. It's better to start with one or two channels and do them well than to spread efforts across four channels that work only halfway.
How to set up a funnel – 3 steps to start
1. Find out where you have a gap Do people visit your website but don't contact you? The problem is in BOFU – there's no clear call to action. Hardly anyone finds your website? TOFU is missing.
2. Choose one tool for each stage You don't need to do everything. Choose what comes naturally to you – a blog, Instagram, YouTube, or a podcast for TOFU. Newsletter or webinar for MOFU. Price list, form, or phone number for BOFU.
3. Track what works Simple metrics are enough: how many people came to the website (TOFU), how many subscribed or wrote (MOFU), how many actually purchased (BOFU). In each stage, monitor different numbers and adjust accordingly.
Summary
A marketing funnel isn't a complex theory for large companies. It's a practical framework that helps stop doing marketing randomly and start doing it systematically. Start with what you're missing the most – and gradually fill in the rest.