Purchase Funnel

Definition: The purchase funnel is a theoretical model used by marketers to describe the flow of activity businesses generate from customers. Most often, the main stages involve: (1) awareness, (2) consideration, (3) preference, (4) purchase, and (5) loyalty.

Marketers may turn to the purchase funnel model to determine which areas of their marketing campaign need improvement in order to boost sales and customer retention.

See also eMarketing.