Email marketing funnel development: Important tips for creating funnels that actually work

Email marketing is a lot like chess. You don’t need to be a genius to build a strong email marketing funnel — you just need to think strategically a few steps ahead and avoid mistakes that can hurt your results.

This article will help you become a “grandmaster” of email marketing funnels and ensure that every lead you capture is noticed.

Key takeaways

1. A strategy for building an email marketing funnel requires preparation, clear goals, and a system for testing and analyzing results.
2. The effectiveness of the email marketing funnel should be constantly monitored, right from its launch.
3. Even the most promising email funnels can fail to deliver the expected results if marketers do not address pitfalls.

What is an email marketing funnel?

An email marketing funnel is a series of automated emails triggered after a subscriber takes a specific action. It guides people through their customer journey — from the first interaction with your brand to becoming loyal repeat buyers.

For example, someone might sign up to get your free lead magnet or a discount on their first purchase. Instead of sending one automated email and risking that lead getting lost in your contact list, you use a strategic email funnel to guide them toward a relevant, personalized offer.

Here’s what a strategic email funnel might look like:

• welcome sequence — creates a connection and sets expectations for what’s ahead;
• nurture or onboarding sequence — shares valuable content to build trust in your brand;
• sales sequence — presents your offer and encourages conversion.

Together, these flows make up your email marketing funnel. They lead subscribers through different stages, turning first-time buyers or freebie seekers into loyal, returning customers.

But before you start crafting those emails, you need a solid strategic plan and a clear view of the key elements. In this article, we’ll explore the most effective strategies, common mistakes, and how to fix them.

Email funnel-building strategy

Creating an effective email marketing funnel requires preparation, clear goals, and a system for testing and analyzing results. Maryna Ryzhko, an email marketing specialist, explains the key stages of funnel strategy development used in real-life marketing.

Analytics for goal setting

Before formulating KPIs for your funnel, you need to understand whether you have analytics and how detailed they are. This will determine your approach.

Option one: Setting KPIs based on existing data

In this case, we’re talking about improving the email marketing funnel of a company in which processes are already established. Typically, such companies have specific KPIs for the funnel based on the results already achieved. This means that

• all emails are tagged;
• associated conversions are set up;
• dashboards are compiled, for example, in Google Analytics;
• there are statistics on key metrics for each funnel.

In this situation, you can accurately see, for example, conversions before the first payment. If the welcome chain or related triggers are tagged, it’s clear what results they are driving. Repeat sales, retention (on the third day, on the seventh day, and beyond), and the churn rate are assessed similarly. Based on this data, you can set new and improved KPIs.

Option two: The company is just starting out with email marketing

In this case, there are no analytics, the metrics are unclear, and management often has unrealistic expectations (“We want +500% increase in conversion”). KPIs are created “out of thin air,” without a basis in fact, so it’s best for young professionals not to agree to such conditions. Without figures, it’s impossible to predict results accurately. And to collect the bare minimum of statistics, you need at least three months of work.

At this stage, it’s important to do the following:

• start by digitizing processes and building dashboards;
• determine average product metrics;
• implement traffic and communication tagging;
• understand the true role of email in customer activation and retention.

This forms the basis for setting objective KPIs and hypotheses.

Preparing for funnel design

Before designing the funnel, the first step is to analyze the current analytics. It is important to study the lead or buyer’s journey, define audience segments, and highlight key brand interaction points (from lead magnet to purchase).

Next, the audience is segmented according to various parameters (demographic, geographic, and behavioral). Segmentation helps gain insights and formulate more accurate hypotheses.

Steps for formulating hypotheses and a strategy

1. Brainstorming is a process of generating ideas and hypotheses. Typically, a backlog of different ideas is created to test hypotheses sequentially. Selecting one specific hypothesis to begin with helps you understand more closely how you will implement the marketing funnel.
2. Metric selection. A specific goal is defined for each hypothesis (e.g., increase conversion from 5% to 7%).
3. Strategy development. A visual representation of the funnel is created, taking into account segments.
4. Content preparation (text, design, and interactivity in emails) and configuration of sales processes.
5. Integrations. If necessary, integrating CRM, payment systems, and the website.

Analytics setup and testing

A dashboard for tracking metrics is created in parallel with funnel development. For example, Tableau can be used to combine classic sending statistics (deliverability, open rate, click rate, and unsubscribes) with financial metrics (purchases and repeat purchases).

Based on the data, the hypothesis is accepted or rejected. Although hypothesis testing is an ideal tool for funnel development, it is not always fully implementable in practice.

How to evaluate funnel effectiveness

The effectiveness of the email marketing funnel should be constantly monitored, right from its launch. These metrics will reveal weak points and help you fine-tune your email sequences to ensure that every email is effective.

An email funnel that shows initial potential may still experience a drop in engagement, conversions or open rates, and neither change should be ignored. While this does not necessarily mean the campaign is ineffective, it may be an early sign that it needs to be optimized.

Here are some key indicators that the email funnel requires improvements or adjustments:

• Decreasing open rates

If open rates decline or the email funnel generally performs below industry benchmarks, the subject line, frequency, sender’s reputation, and sending time could be the reasons.

Recommendations: If open rates start to decline, subject lines should be examined to find underperforming ones. A/B testing tone of voice (urgency, curiosity, etc.), structure (questions or narrative sentences), or length can determine what resonates with the audience.

If open rates drop to or near 0%, it’s likely that the emails aren’t even reaching inboxes and are being sent to spam folders instead. Lastly, if the frequency is a problem, test step delays. A great example that improves campaign results is timely abandoned cart reminders. Ideally, you should start emailing leads no earlier than 24 hours after inactivity.

• High spam complaints

An increasing spam complaint rate indicates issues with the deliverability setup, sending frequency, or email content. In addition, an unintuitive sign-up process and no double opt-in create a sense of invasiveness.

Recommendations: Allow less engaged subscribers to manage their preferences. Use leads’ data wisely and treat it with respect. Inserting variables does not necessarily mean that the emails are personalized or that the content is tailored to recipients. Besides data usage, set up proper sending frequency and segment the audience by their activity or interests; use automation tools to deliver the right message to the right audience.

• Increasing bounce rates

Spiking bounce rates often result from low-quality contact lists or improper domain configuration. In the first case, emails fail to reach the recipient; the second usually indicates deliverability-related issues.

Recommendations: Verify prospect lists, remove invalid and risky email addresses, and double-check whether SPF, DMARC, and DKIM are set up correctly. In addition, refine email content and subject lines: Avoid overly promotional or spammy subject lines, ensure call-to-action buttons have functional links, and minimize attachments.

• Poor click-through rates and conversions

Not every opened email gets clicks, so if you experience low or declining click-through rates compared to industry benchmarks, layout or email content elements may be the reason.

Recommendations: Overall email copy, call-to-action button text, placement, colors, and functionality should encourage readers to engage. To improve conversions, add relevant content such as testimonials, case studies, and user-generated content to the emails, as these can foster trust. You can offer free trials, welcome lessons, discounts, and free shipping if applicable to the business type.

Common mistakes and how to avoid them

Even the most promising email funnels can fail to deliver the expected results if marketers do not address pitfalls. Starting with inefficiently picked content and ending with legal requirements, these components are mandatory to ensure successful marketing funnels.

Misalignment between funnel stages and email focus

Email content must correspond to particular customer expectations at the funnel stage. Otherwise, it disrupts the buyer’s journey and appears irrelevant, which negatively influences brand image, especially during the initial acquaintance.

For example, excessive promotional discounts during the awareness stage can deter potential customers from getting to know the brand. Moreover, this approach may be deemed aggressive selling, which harms company perception. At the conversion stage, content can focus on more complex features and perks that come with upgrades. Generic emails with basic product descriptions or functionality weaken prospects’ interest.

Improper frequency

Sending too many emails and disrespecting people’s silence increases opt-out rates and frustration; however, the same goes for sending too few messages. Either way, improper frequency directly influences audience engagement and overall interest in the brand.

Try to find a balance between staying on prospects’ and customers’ minds without bombarding them with messages.

Anna Zabudska recommends the following frequency:

Ideally, the sending frequency should be chosen based on the audience’s preferences. However, there are general industry options, so if you are at the beginning of the journey, these could become a foundation for future tests and adjustments:

• SaaS: SaaS usually sends emails dedicated to product updates, education, or onboarding once or twice a week;
• eCommerce: On average, eCommerce brands send 2 or 3 emails per week. These are usually lifecycle or behavioral emails or emails that offer discounts or announce new product arrivals;
• education: Education is similar to SaaS businesses, as there are fewer discounts or flash sales, so emails are sent once or twice a week. They usually introduce potential students to new courses, lectures, or upcoming educational events.

One more tip on recommended frequency from an experienced email marketer:

Poor segmentation and generic messaging

Email funnels with generic messages often fail to address customers’ needs or tailor content to the buyer’s journey stage. Customer lifecycle segmentation does wonders, and numerous studies have confirmed a positive impact on conversions.

Still, it is hard to address email funnel pitfalls without understanding the common challenges.

Here are some typical segmentation mistakes and tips on how to avoid them:

• ignoring demographic or geographic data: Personalize emails based on location, age, and the contact’s preferences to increase relevance. An email funnel that is relevant to one group can be completely useless to the other;
• untargeted product pitches: Segment the audience based on their history with the brand, interest, and past behavior instead of sending the same funnel message to the whole list;
• one-size-fits-all nurturing emails: If you do not adjust nurturing emails to customers' activity or history of engagement, you may lose the possibility of working with their interests and addressing pain points.

Not to use AI-driven analytics for personalization

The impact of AI on email marketing funnels in general and personalization in particular is undeniable. Basic customer-related variables, such as first and last name, company, and current position, have exhausted themselves, and more businesses plan to adjust.

Around 73% of brands agree that AI significantly changes email marketing strategies and approaches to personalization. Leads expect effort beyond a name mention, and AI lets specialists analyze large batches of data to create personalized campaigns.

Here is how AI-driven analytics can help enhance email content quality:

• predictive segmentation: In addition to analyzing batches of customer data (purchase history, saved items, and past interactions with the brand), AI can predict what content or products will resonate with the recipients best. Furthermore, this has become a trend, as 86% of companies expect a shift from reactive to predictive personalization;
• behavior-based recommendations: These AI-based suggestions are a great replacement for generic emails with static content. By monitoring and analyzing leads’ visits, clicks, and interactions with the brand, AI can adjust future recommendations to be interconnected with the person’s actions;
• hyper-personalization: Similar to the options above, AI works with real-time data sets to create content that aligns with the prospects’ interests and recent actions.

Ignoring re-engagement opportunities

A customer’s first purchase or subscription will not necessarily make them instantly love that brand or ensure that they return to it. Customers may also go silent and drop off. In such cases, the key lies in proper re-engagement techniques.

Here is how you can win people over after a pause:

• behavior-based triggers: Whether a person ignored the last two emails or abandoned the cart, set up an email series, addressing potential obstacles;
• preference updates: Sometimes, people go silent when the emails become irrelevant or when they dislike their frequency or the overall approach. It might be a good idea to ask for feedback or reassess your approach if you have applied any changes recently;
• gamification emails: Quizzes or surveys can encourage re-engagement by making the email experience more engaging and rewarding. Instead of offering a “Miss you” discount, offer subscribers to play a game or pass a quiz.

Lack of A/B testing and continuous optimization

Little or no A/B testing is a way to miss an opportunity to improve email funnel results.

Common issues that arise without testing may include the following:

• low open rates: Without testing ineffective phrasing, the design will remain a part of email funnels, leading to fewer opened emails;
• poor click-through rates: Misplaced calls to action, improper button text choice, action words, or pronoun use influence the number of clicks. Identifying the best and worst variants becomes impossible;
• improper sending times: There are peak and low-activity hours and days. For instance, Tuesday has the highest open and click-through rates, while Saturday has the lowest rates. However, the best time for your audience requires testing, as no approach fits all audiences.

Continuous A/B testing and email funnel optimization ensure that there are no blind spots, that you build effective communication with subscribers, and that you use approaches that secure the best results.

Underestimating the importance of deliverability

Poor deliverability goes beyond emails never reaching the inbox and may lead to wasted marketing efforts and lost revenue. An improper delivery approach often results in lower engagement, increased spam complaints, and a bad domain reputation.

If you use a new domain or start sending high email volumes at once, follow email warm-up guidelines and warnings. And always remember about Google’s and Yahoo’s sender requirements.

Ignoring local legislation

When creating an email marketing funnel, ignoring local email regulations regarding subscriber data protection can harm your business.

Use this list of the most common mistakes when developing an email marketing funnel to test yourself. This will definitely help you improve the effectiveness of each email in the chain and the entire sequence as a whole.

Wrapping up

In the end, building an email funnel really is like playing chess. Every move matters — from the first welcome email to the re-engagement campaign months later. By thinking a few steps ahead, aligning your strategy with customer needs, and steering clear of common mistakes, you can turn casual subscribers into loyal customers. Master the strategy, avoid the traps, and you’ll be well on your way to becoming a true grandmaster of email marketing funnels.