Why you need a funnel before a plan
In Level 1 you worked out who your customers are and why they should pick you. This level turns that into action. You need two tools:
- The marketing funnel. This is a map of the steps a stranger takes on the way to becoming a repeat customer.
- A one-page marketing plan. This sets out what you will do at each step, how you will measure it and what it will cost.
The funnel is wide at the top and narrow at the bottom. Many people hear of you, fewer look into you, fewer still buy, and only some come back. That narrowing is normal. Marketing is the work of moving more people from one stage to the next.
The idea is old. The AIDA model (Attention, Interest, Desire, Action) dates from the late 1800s, and most modern funnels are versions of it. This course uses four plain stages.
The four funnel stages
| Stage | What the customer is thinking | What the customer does |
|---|---|---|
| 1. Awareness | "I didn't know you existed." | Sees or hears of you for the first time |
| 2. Consideration | "Are you right for me?" | Looks at your website, reviews, prices or posts |
| 3. Purchase | "I'll give it a try." | Books, buys, calls or visits |
| 4. Repeat purchase | "That was good, I'll come back." | Buys again and may recommend you |
Some models add a fifth stage, advocacy, for customers who actively recommend you. In this plan that sits inside Repeat purchase.
Example business for this level: Muddy Paws, a one-person dog-grooming business in Leeds. Its customers are busy dog owners within about five miles. Its positioning is "calm, unhurried grooming for nervous dogs".
Task 1: Map each stage to a customer action and an activity
For each stage, write down one customer action and one or two marketing activities that encourage it.
- Write the four stage names down the left of a page.
- Next to each one, write what the customer does at that stage. Use a verb you can observe, such as "follows", "visits", "books" or "rebooks".
- Next to that, write the activity that prompts the action.
Muddy Paws example:
- Awareness: customer sees Muddy Paws for the first time. Activities: leaflets in two local vets and a pet shop; a free Google Business Profile.
- Consideration: customer visits the website or reads reviews. Activities: before-and-after photos of nervous dogs; a clear price list.
- Purchase: customer books a first groom. Activity: a £5-off first groom for new customers.
- Repeat purchase: customer rebooks within eight weeks. Activities: a reminder email six weeks after each groom; a "refer a friend" card.
Tip: a common beginner mistake is to spend everything on Awareness while nobody is reminded to come back. Keeping a customer usually costs less than finding a new one.
Task 2: Set one measurable goal per stage
A goal you cannot count is a wish. Use the SMART test, first set out by George Doran in 1981. A good goal is Specific, Measurable, Achievable (Doran wrote "Assignable"), Realistic and Time-bound.
- Pick one number per stage, so you track four numbers rather than forty.
- Add a deadline, usually "per month" or "by the end of the quarter".
- Check that you can actually collect the number. If you can't count it, change the goal.
Muddy Paws goals:
- Awareness: 300 views of the Google Business Profile per month.
- Consideration: 120 website visits per month.
- Purchase: 15 new-customer bookings per month.
- Repeat purchase: 60% of new customers rebook within eight weeks.
Weak goal: "Get more people to know about us." Strong goal: "300 profile views per month by the end of March."
Task 3: Split a monthly budget across channels
There is no single correct figure. Published rules of thumb vary widely by country, sector and profit margin. A safe way to begin is:
- Set a monthly amount you could lose without harm while you learn what works. Muddy Paws sets £300.
- Count free channels at £0 but note the time they take, for example "Google Business Profile: £0, 1 hour a week".
- Give money to every stage, not just Awareness.
- Keep about 10–20% as a test pot for trying one new idea each month.
Muddy Paws monthly budget (£300):
| Activity | Stage | Cost |
|---|---|---|
| Leaflets (print and distribution) | Awareness | £60 |
| Small local social media ads | Awareness | £90 |
| First-groom £5 discount (about 15 uses) | Purchase | £75 |
| Email tool and refer-a-friend cards | Repeat | £30 |
| Test pot | Any | £45 |
| Google Business Profile, photos, price list | Awareness / Consideration | £0 (time only) |
Later levels cover each channel in depth. For now, the aim is a sensible first split you can adjust after one month.
Task 4: Write and check the one-page plan
Put everything on one page with five headings:
- Who we serve and why they choose us (from Level 1)
- Funnel map (Task 1)
- Goals (Task 2)
- Budget (Task 3)
- Review date: when you will look at the numbers, for example the first Monday of each month
How to check your plan. Go through every activity and confirm that it has:
- a stage it serves
- a goal it moves
- a cost in money or time
If an activity fails any of these checks, fix it or cut it. Also check the other way round: every stage should have at least one activity. A stage with no activity is a gap in your funnel.
Your task: draft a one-page plan for Muddy Paws or for your own business, then run the three-point check above. If every line passes, the plan is complete.
Key takeaways
- The funnel has four stages: Awareness → Consideration → Purchase → Repeat purchase. It narrows at each step.
- Link each stage to one observable customer action and at least one activity.
- Set one SMART goal per stage that you can actually count.
- Start with a budget you can afford to learn with. Fund every stage and keep a small test pot.
- Every activity needs a stage, a goal and a cost. Cut anything that fails.