Navigating the B2B Marketing Funnel

Jun 25

Picture this: you're a seasoned explorer, navigating through a dense jungle of marketing data. You've got a map in hand, but the path to success is not always clear. The key to finding your way lies in understanding the B2B marketing funnel - a powerful framework that can help you track, measure, and optimize your journey. In this article, we'll dive into the funnel, exploring each stage and sharing real-world examples to help you make data-driven decisions and take your marketing to the next level.

Understanding the B2B Marketing Funnel:

The B2B marketing funnel, also known as the demand funnel, was originally created by SiriusDecisions in 2006. Despite the rapid evolution of marketing technologies and tactics over the years, this framework has proven to be remarkably resilient and adaptable. Its enduring relevance lies in its ability to provide a clear, structured way to visualize and understand the key stages of your potential customer's journey, making it an indispensable tool for data-driven marketers looking to optimize their strategies and drive meaningful business results.

The stages are: 1) Inquiry, 2) Marketing Qualified Lead (MQL), 3) Sales Accepted Lead (SAL), 4) Opportunity or Sales Qualified Lead (SQL), and 5) Closed Won (Customer Acquisition). SAL is optional for if you need to track a stage in between MQL & SQL - an example use case would be to track the SDR/BDR stage.

In simple journeys, prospects move through the funnel linearly. By creating reports and setting targets for each stage, you can better plan your strategy, allocate budget, and drive growth.

Real-World Funnel Example:

Let's take a look at how a B2B SaaS company might approach their marketing funnel:

Inquiry:

The company runs targeted LinkedIn ads and publishes thought-leadership content to attract potential customers and generate inquiries.
Prospects engage with the content and show initial interest by downloading a gated asset, such as an eBook or whitepaper.

MQL:

Prospects continue engaging by attending a webinar.
Interested prospects fill out a form to request a personalized demo, becoming an MQL.
The marketing team passes the MQL to the SDR/BDR or sales team for further qualification.

SAL:

SDR/BDR accepts and reaches out to the MQL to discuss their specific needs, determine if they are a good fit, and gauge their interest in the product.
This prospect seems to be well qualified and the SDR/BDR determines this should be handed over to a sales rep.

SQL:

SAL demonstrated a strong interest and fit and is converted to an Opportunity.
Sales rep conducts product demonstrations, provides custom pricing packages, and works to address any concerns or objections.

Closed Won (Customer Acquisition):

SQL decides to purchase the product and becomes a customer.
The company's customer success team works closely with the new customer to ensure a smooth onboarding process and provide ongoing support.

Key Metrics to Track:

To measure the success of your B2B marketing funnel, it's crucial to track the right metrics at each stage. Some key metrics to consider:

MQL volume and conversion rate to SQL
SQL volume and win rate
Pipeline velocity (how quickly deals move through the funnel)
Bookings

Regularly monitoring these metrics will help you identify bottlenecks, optimize your strategies, and prove the value of your marketing efforts to key stakeholders. They will also contribute to CAC and ROI calculations.

For a step-by-step guide on setting up your B2B marketing funnel tracking system, check out our companion piece: https://www.growthstrategieslab.com/resources/b2b-funnel-tracking-guide.

Exploring Alternative Models:

While the classic B2B marketing funnel is a tried-and-true framework, there are other models that may better suit your business needs. These include but are not limited to:

Flywheel Model: Emphasizes the importance of customer experience and advocacy in driving growth by using the momentum of happy customers to drive referrals and repeat sales. The three stages are Attract, Engage, and Delight. Best for companies with a strong focus on customer success and referral marketing.
Bow-Tie: Visualizes the entire customer journey, from initial awareness to post-purchase loyalty and advocacy, in a horizontal bow-tie shape. The left side of the bow-tie represents the traditional sales funnel stages (Awareness, Education, Selection), with Win (Acquisition) in the middle, while the right side represents the post-purchase stages (Onboarding, Impact, Growth). Useful for businesses looking to optimize both customer acquisition and LTV potential with cross-sell and up-sell.
Marketing Hourglass: Similar to the Bow-Tie, extends the traditional funnel beyond the point of purchase, emphasizing the importance of customer retention, loyalty, and advocacy. The stages are Engagement, Education, Research, Evaluation, Justification, Purchase, Adoption, Retention, Expansion, and Advocacy. Well suited for companies focused on building long-term customer relationships and leveraging customer satisfaction to drive growth through repeat purchases and referrals.
ABM Funnel: Focuses on targeting and engaging key accounts rather than individual leads. The stages are Identify, Expand, Engage, and Advocate. Ideal for companies with a limited number of high-value target accounts.
Double Funnel: Combines account-based marketing (ABM) and demand generation efforts into two parallel funnels. The Double Funnel aligns the ABM funnel stages (Target Accounts, Engaged Accounts, Qualification, Opportunity, and Closed Won) with the demand generation funnel stages (Leads, Engaged Leads, Qualification, Opportunity, and Closed Won). Suitable for businesses looking to find the optimal mix of ABM and demand generation strategies.

Final Thoughts & How We Can Help:

Mastering your B2B marketing funnel is an ongoing journey that requires a keen eye for data, a willingness to experiment, and a commitment to continuous improvement. By leveraging the insights shared in this article and partnering with experts like GSL, you can navigate the challenges of the modern B2B landscape and emerge victorious.

At GSL, our team of experts specializes in guiding growth-minded marketing leaders through the complexities of the B2B marketing funnel. We have had 8+ years of hands-on experience utilizing the demand funnel for key business reports and dashboards for business stakeholders and executives alike. With our unique level of in-depth knowledge and expertise, we can help you build robust tracking systems, refine your forecasting models, and customize your KPIs to align with your unique GTM strategies.