The conversion funnel is divided into several stages, each crucial for guiding potential customers. The Top of the Funnel (TOFU) focuses on awareness and lead generation, where strategies aim to attract a broad audience. The Middle of the Funnel (MOFU) is where consideration and interest are nurtured through targeted content and engagement, turning leads into prospects. Finally, the Bottom of the Funnel (BOFU) is where intent and purchase occur, with efforts centered on converting prospects into customers.

Understanding and optimizing the conversion funnel involves several metrics and techniques. Retention Rate measures how well a business keeps its customers over time, which is crucial for long-term success. Conversion Rate Optimization (CRO) involves testing and strategies to improve the percentage of visitors who complete desired actions at each funnel stage. Cohort Analysis helps in understanding how different groups of users behave over time, providing insights into how to improve the funnel's effectiveness.

Lead nurturing is essential throughout the funnel, especially in the MOFU stage. It involves building relationships with potential customers through personalized content and interactions, guiding them towards a purchase decision. Awareness and interest are the primary goals at the TOFU stage, where broad marketing efforts aim to capture attention. As potential customers move to the MOFU stage, the focus shifts to consideration and intent, where more detailed information and engagement are provided. Finally, at the BOFU stage, the emphasis is on facilitating the purchase and ensuring a smooth transaction process.