Funnel marketing: B2B vs B2C strategies & benefits

Funnel marketing is the strategic process of guiding potential customers through a model known as the marketing funnel.

It’s called a “funnel” because it starts by capturing many potential customers and then refines its brand or product messaging to suit the different needs or buying stages of those customers. This helps the most engaged and qualified prospects to make that all-important purchase decision, ultimately nurturing their brand loyalty.

It could take a completely brand-unaware customer from listening to a chill workplace podcast to confidently making a purchase.

Say they experience an ad for a new sneaker brand. Later in the week, they may hear a sponsored segment on a podcast, then click on a companion banner ad. They decide not to buy right away, but then see a retargeted ad on the Spotify app featuring a discount code. This convinces them to make a purchase.

That’s the funnel working in real time.

Read on to understand the evolution of the funnel, its benefits to marketers, and how it can be used to improve B2B (business-to-business) and B2C (business-to-customer) customer communications strategies.

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The “funnel” concept has its roots in earlier theories of consumer behavior and sales processes.

It’s most closely associated with the AIDA model, developed by American advertising and sales pioneer, E. St. Elmo Lewis around 1898. AIDA stands for:

Attention – Capture the prospect’s awareness

Interest – Generate curiosity about the product or service

Desire – Create emotional engagement and preference

Action – Motivate the customer to take action (buy, sign up, etc.)

The AIDA model described a linear progression in how people make purchasing decisions, moving from one stage to the next. Over time, it evolved into what we now call the marketing funnel. ‎
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There are usually six stages potential customers pass through in the modern marketing funnel. These tend to be grouped into broader TOFU (top of funnel), MOFU (middle of funnel) and BOFU (bottom of funnel) phases.

The significance of each stage is in its ability to help marketers understand, predict, and influence customer behavior across the buying journey.

1. Awareness (TOFU) – “I know you exist.”

This is where you capture attention and make a powerful first impression. If customers don’t know you exist, nothing else can happen. So, the awareness stage is about reach, visibility, and planting a seed. Neglect the awareness phase and you risk being invisible in the market.

2. Interest (TOFU) – “Tell me more.”

Now that people are aware, this is your chance to make them aware of content or messaging that zeroes in on their needs, challenges, or goals. It’s all about building audience curiosity and engagement so you can grow a relationship with potential buyers.

3. Consideration (MOFU) – “Is this right for me?”

Here, potential buyers are actively comparing options, including those offered by your competitors. Your job is to differentiate and prove your value through trust-building content and social proof, because the most persuasive brand is the most likely to win.

4. Intent (MOFU) – “I’m thinking about buying.”

The potential customer is almost ready to buy but needs that final assurance. This is a phase built on removing objections and reinforcing trust. Target intent and you’ll lose fewer customers at the last mile.

5. Purchase (BOFU) – “Let’s do this.”

This is what’s known as the conversion point, and it’s where you can win or lose the customer. Making sure customers experience a smooth transaction without surprises creates satisfaction and lays the foundations for loyalty. If it’s clunky, that’s when you end up with abandoned carts and buyers’ remorse.

6. Loyalty/Advocacy (BOFU) – “I’ll buy again and tell others.”

It’s more cost-effective and more profitable to keep existing customers than it is to find new ones. Loyal customers become repeat buyers and brand ambassadors, driving growth via referrals and word-of-mouth. Ignore this phase and you’ll see higher churn and miss out on organic growth.

Each stage of the funnel represents a distinct mindset, and recognizing those differences enables more targeted, effective, and efficient marketing strategies. ‎
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The main benefit of full funnel marketing is that it streamlines the process of attracting, nurturing, and converting customers by bringing your marketing strategy in line with how people naturally make buying decisions. There are more specific advantages, too.

First, you’re more likely to see higher conversion rates. By delivering the right message at the right time—whether it’s raising awareness, igniting interest, or encouraging a final purchase—you guide prospects more deliberately through the buying journey, minimizing indecision along the way.

It also enables smarter budget allocation. Instead of spreading your resources thin, you can use a single media or omnichannel platform to invest your ads budget—and deploy your marketing funnel strategy—more seamlessly. Spotify Ads Manager, for example, allows you to build brand awareness through audio, video and display ads targeting specific listener interests, or focus your spend on retargeting campaigns that re-engage users who’ve already interacted with your content—and just need a final push to convert.

Another benefit is the ability to build stronger customer relationships. Since funnel marketing involves ongoing engagement through relevant content and communication, it helps to build trust and loyalty, laying the foundations for repeat business and referrals instead of one-off transactions.

You also get a more predictable sales pipeline when you use a funnel strategy. When you know how leads progress through each stage of the funnel, it’s easier to forecast outcomes, plan campaigns, and get your sales and marketing teams collaborating more effectively.

This all leads to better return on investment (ROI), because your performance metrics are all tied into the different stages of the funnel, making strategy refinement easy.

And, finally—thanks to automation tools like Spotify Ads Manager—scalability. In funnel marketing, you’re delivering different messages to audiences at different stages, but doing that manually isn’t sustainable. Automation gives marketers next-level capability to power their brand growth. ‎
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The way the marketing funnel is structured is the same for both B2B and B2C brands. It’s just the goals that tend to differ.

B2B funnel marketing goals

✔ Attracting the right clients with targeted ads and by growing credibility (TOFU)
✔ Educating prospects and introducing solutions (TOFU)
✔ Building trust through demos and intros (MOFU)
✔ Helping buyers to move quickly on RFPs and proposals (MOFU)
✔ Getting the green light on contracts, trials, and subscriptions (BOFU)
✔ Client renewals, upsells, and referrals (BOFU)

B2C funnel marketing goals

✔ Getting mass attention and making the brand memorable (TOFU)
✔ Making people curious and excited for their first interaction (TOFU)
✔ Minimizing hesitation through reviews and comparisons (MOFU)
✔ Pushing for immediate actions like buying, signing up, or subscribing (MOFU)
✔ Closing sales quickly and enjoyably for the customer (BOFU)
✔ Generating those repeat purchases and brand sharing opportunities (BOFU)

Spotify Ads Manager can help both B2B and B2C brands crush those goals by offering targeted, context-aware audio campaigns that are attuned to how people listen and make their choices. You can also run visual formats like video and display through Ads Manager—helping you reach Spotify listeners when they’re focused on their screens.

Spotify now has over 678M Monthly Active Users (MAUs) worldwide—and more than half of those are ad-supported. These users include business decision makers across many different industries, who B2B brands can reach through targeted campaigns during highly engaged moments such as “focus time” or the early morning commute.

The same goes for B2C brands. Spotify is able to reach consumers when they’re emotionally dialed in—whether working out or hanging out, and listening or watching content that’s personalized for them—with dynamic messaging that kickstarts their interest and demands action.