On the latest episode of The Small Business Show, host Jim Fitzpatrick sat down with George Deeb—Forbes contributor, author, and Managing Partner at Red Rock Ventures—to explore how small businesses can leverage the marketing funnel to drive sustainable growth. Deeb walks through the five critical stages of the customer journey, offering insights into how entrepreneurs can optimize their strategies at each step for better retention, conversion, and advocacy.
First, Deeb began by clearly defining the marketing funnel as the life cycle of a customer—starting with brand awareness and ending with advocacy. He then identified the five essential stages in the funnel:
- Awareness
- Consideration
- Purchase
- Retention
- Advocacy
In the awareness stage, Deeb emphasized the importance of being the “first brand that comes to mind” in a category—just like Coke for soda or Nike for athletic shoes. To build this top-of-mind recognition, he recommended traditional branding tactics such as digital ads, direct mail, PR, and TV or radio spots—tailored to where the ideal audience resides.
The consideration phase is where consumers start comparing brands, and businesses need to stand out. “You want to make sure that you have the best story you can possibly tell at this stage,” Deeb said, noting that positive customer reviews, press coverage, and blog mentions can help push prospects toward purchase.
Once consumers reach the purchase stage, Deeb explained it’s simply about making the transaction easy—whether through a website, call center, or retail store. But getting the sale is just the beginning.
In the retention stage, it’s all about repeat business. Deeb notes, “You want to get them buying from you over and over and over again.” He then suggested using email newsletters, blog content, and loyalty programs to stay top-of-mind and deepen engagement.
The final stage—advocacy—is where customers become passionate promoters. “This is when the customer is so passionate about your product or service, they can’t help but share the word,” Deeb said. Social media and word-of-mouth referrals are powerful, free tools that help businesses grow organically.
When asked how to tailor marketing efforts to each stage, Deeb emphasized segmentation. “You don’t give a one-size-fits-all approach to your marketing,” he cautioned. Each phase requires distinct messaging and a unique media strategy.
To allocate resources effectively, Deeb also shared a suggested marketing budget split:
- 50% to lower-funnel tactics (purchase & retention)
- 30% to middle-funnel tactics (consideration)
- 20% to upper-funnel tactics (brand awareness)
Finally, Deeb addressed a common mistake entrepreneurs make: using the same performance metrics across the funnel. He recommended evaluating efforts with stage-specific KPIs, such as:
- Upper funnel: cost per impression or cost per visitor
- Middle funnel: cost per lead
- Lower funnel: customer acquisition cost (CAC) or return on ad spend (ROAS)
"This is when the customer is so passionate about your product or service, they can't help but share the word." – George Deeb
