The Marketing Funnel
Updated For 2025 with AI-First Strategies
How AI Is Transforming Each Funnel Stage
Online Location
- Organic social (LinkedIn, TikTok)
- AI search (AEO + GEO)
- Traditional SEO (top-of-funnel content)
KPIs
- Impressions
- AI citations in answers
- Organic traffic growth
Make people aware you exist
Strategy
- Optimise content for AI answers (AEO) and generative search (GEO)
- Use founder-led content marketing to build authority and drive traffic
- Publish broad awareness content (trends, POV pieces) optimised for search
Online Location
- Organic blogs (comparisons, explainers)
- Educational social content (cheat sheets)
- Traditional SEO (top-of-funnel content)
KPIs
- Session time, scroll depth
- Returning visits
- AI snippet appearances
Educate and nurture that audience
Strategy
- Build mid-funnel SEO content (comparison pages, buyer guides)
- Engage in communities AI scrapes (Reddit threads, Quora answers)
- Use gated content (guides, webinars) to capture emails and segment leads
Online Location
- Bottom-funnel SEO (pricing, reviews)
- AI-powered chatbots on landing pages
- Branded search + referral traffic
KPIs
- Demo requests, calendar bookings
- Form completions
- Branded search volume
Capture those evaluating your offer
Strategy
- Optimise bottom-funnel pages for Google and AI citations
- Showcase proof (case studies, testimonials) with structured data
- Use interactive tools (ROI calculators, quizzes) to capture high-intent leads
Online Location
- Landing pages and checkout flows
- Email nurture sequences
- Social DMs
KPIs
- Conversion rate
- Revenue per lead
- Cart abandonment rate
Turn intent into revenue
Strategy
- Personalise CTAs using AI audience insights
- A/B test AI-generated page variants for maximum conversion
- Layer urgency: time-bound offers, onboarding bonuses
Online Location
- Email (loyalty programs, upsell flows)
- Community platforms (Discord, LinkedIn groups)
- Help articles and SEO-driven support hubs
KPIs
- Retention rate, repeat purchase rate
- Referral sign-ups
- Engagement in community spaces
Retain and grow customers
Strategy
- Build loyalty loops with personalised rewards and upsell flows
- Use AI internally for predictive churn alerts (spot when usage drops)
- Encourage community-led growth: referrals, user-generated content
Frequently Asked Questions
Why do 79% of leads never convert?
The primary reason is lack of proper nurturing—capturing leads is only the beginning. Around 80% of sales require at least five follow-ups, yet most reps give up after one or two attempts. This highlights the persistence needed in modern funnels. Build automated nurture sequences with AI-personalized content that addresses objections and provides value at each stage.
How effective are AI chatbots in the funnel?
Extremely effective when deployed strategically. Sites using AI chatbots see 23% higher conversion rates. Chatbot-led funnels convert 2.4x higher than traditional web forms. 26% of all sales in companies using chatbots begin with a chatbot interaction—bots qualify interest and move prospects down the funnel more efficiently. E-commerce businesses report 7-25% annual revenue increases after deploying chatbots.
What's the ROI math on chatbots?
A chatbot interaction costs about $0.50, versus roughly $6.00 for a human support interaction—a 12x cost reduction. 57% of companies say chatbots deliver "significant ROI" within the first year. The global chatbot market is projected to grow from $15.6B (2024) to $46.6B by 2029, indicating business confidence in the technology. 49% of all website customer interactions are now handled by chatbots.
Why does referral traffic convert at 10.99%?
Referral traffic has the highest conversion rate because it comes with built-in trust and social proof. When someone refers your business, they've pre-qualified the lead and transferred credibility. Compare this to inbound (3.82%) and paid search—referrals are 3x more effective. This is why the Loyalty stage is crucial: happy customers become your best acquisition channel.
How should B2B companies adapt this funnel?
B2B buyers use an average of 10 different channels to interact with suppliers—from events to chatbots to third-party reviews. 46% of B2B companies already use AI-driven chatbots for initial interactions and routing. Teams using AI are 7x more likely to meet or exceed lead and revenue goals. The key difference: longer consideration cycles require more touchpoints and persistence.
What's the mobile conversion gap problem?
Mobile accounts for 68% of all e-commerce traffic, yet its average conversion rate is just 2%—a massive gap compared to desktop. In 2025, this is prompting companies to invest heavily in mobile-first design, faster checkouts, and adaptive content. If you're not optimizing for mobile at every funnel stage, you're losing the majority of your traffic.
What does "95% AI-assisted" actually mean?
By 2025, 95% of customer interactions include some form of AI assistance—chatbots, autoresponders, guided selling, predictive recommendations, and more. 92% of businesses use AI for campaign personalization. McKinsey reports that companies using AI in sales and marketing see 10-20% higher ROI. The funnel is no longer human-only; AI is integrated at every stage.
How do I measure full-funnel AI impact?
Track AI-specific metrics at each stage: Awareness (AI citations, AI-referred traffic), Consideration (chatbot engagement rate, AI snippet appearances), Intent (chatbot-to-demo conversion), Conversion (AI-assisted vs human-only close rates), Loyalty (automated retention touchpoint effectiveness). Compare funnel metrics before and after AI implementation to isolate impact.
The CITE Framework™ for Funnel Optimization
Need Help Optimizing Your Marketing Funnel for AI Search?
Our SEO agency specializes in evolving marketing funnels for the AI-first era—from awareness through AI search visibility to conversion optimization. We help brands adapt their customer journey strategies for ChatGPT, Perplexity, and other AI platforms to capture demand at every stage of the modern funnel.