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14 Mar 25

What Causes Your Customer Acquisition Funnel to Underperform?

Irwin Hau | Digital Marketing

If youโ€™re wondering why your customer acquisition funnel isnโ€™t delivering, youโ€™re definitely not alone. Plenty of businesses reach that frustrating stage where leads show up but just donโ€™t convert, and theyโ€™re left scratching their heads about what to fix first.

Usually, itโ€™s not just one thing. It could be fuzzy targeting, weak lead nurturing, or a hidden bottleneck blocking people from taking that final step. Letโ€™s unpack the common pitfalls and what you can do to get your funnel firing again.

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1) Targeting and Messaging That Misses The Mark

If you donโ€™t have a laser focus on who youโ€™re talking to, your funnelโ€™s probably leaking leads like a sieve. You might think you know your audience, but if your message doesnโ€™t hit their pain points or speak their language, theyโ€™ll bounce.

For example, I worked with a local home services business last year whose ads were way too genericโ€”something like โ€œWe do cleaning, gardening, and more!โ€ Not exactly gripping, right? Once we got specificโ€”targeting busy parents in Melbourneโ€™s suburbs, highlighting โ€œtime-saving, trustworthy help you can rely onโ€โ€”their conversion rate jumped 40% in just two months.

Key things to check here:

  • Do you really know your ideal customerโ€™s problems?

  • Is your value clear and compelling from the first touchpoint?

  • Are you addressing why they should pick you over the competition?

 

2) Stuck With One Lead Gen Channel? Time To Mix It Up

Relying on a single lead source is like putting all your eggs in one basket. If Facebook Ads arenโ€™t delivering, donโ€™t just stare at the dashboard hoping for better results. Test other avenues.

Try combining:

  • SEO to catch people actively searching

  • Referral programs to leverage happy customers

  • Paid ads on LinkedIn or Google for specific industries

  • Social media content that educates and builds trust

Low-quality leads are a waste of time and money. Focus on channels that bring in people who actually want what you offer.

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3) Lead Nurturing Doesnโ€™t Have To Be Complicatedโ€”But It Canโ€™t Be Lazy

Once someoneโ€™s in your funnel, you gotta keep them interested. Sending the same generic email to every lead? Thatโ€™s a fast track to the unsubscribe button.

Use automation tools like ActiveCampaign or HubSpot to segment leads by behaviourโ€”maybe they downloaded a guide but didnโ€™t book a call, or they clicked a pricing page but didnโ€™t convert. Then send relevant, timely follow-ups.

Things like:

  • Helpful tips related to their interest

  • Special offers based on their stage

  • Success stories from similar customers

This keeps you top of mind and builds trust.

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4) Watch Out For Conversion Roadblocks

Sometimes prospects drop off at the same stageโ€”say, the checkout or enquiry form. Thatโ€™s a red flag.

Common hiccups:

  • Too many form fields

  • Confusing or long processes

  • Lack of clear CTAs or next steps

I once saw a client with a checkout page that asked for way too much info upfront. After cutting it back to just essentials, their sales jumped 25%.

Use tools like Hotjar or Google Analytics to track where people exit. Fix those leaks.

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5) Data Isnโ€™t Just For Nerdsโ€”Itโ€™s Your Best Friend

If youโ€™re flying blind, you wonโ€™t know whatโ€™s broken. Track metrics like:

  • Click-through rates on emails and ads

  • Conversion rates at every funnel stage

  • Bounce rates on landing pages

Then test changes, like tweaking headlines or button colours. A/B testing might sound fancy, but itโ€™s just trying two versions to see which wins.

Simple changes can make a big differenceโ€”like changing a button from โ€œSubmitโ€ to โ€œGet My Free Quoteโ€ can nudge more people over the line.

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6) Donโ€™t Forget The Customers You Already Have

Sometimes businesses get so obsessed with new leads, they forget about the ones theyโ€™ve got. Customer retention and upselling are part of the funnel too.

Think:

  • Personalised follow-ups after purchase

  • Loyalty programs or discounts

  • Targeted offers for complementary products or services

Happy customers come back and tell their mates, which means more leads without extra spend.

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7) Sales and Marketing Need To Play Nice

When sales and marketing arenโ€™t aligned, leads get lostโ€”like tossing a hot potato and hoping it doesnโ€™t drop.

Get both teams talking regularly, sharing lead info, and agreeing on what a โ€œqualified leadโ€ looks like. That way, marketingโ€™s efforts donโ€™t go to waste, and sales has better chances of closing deals.

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Conclusion

Lookโ€”this stuff works, but only if you actually do the work to understand whatโ€™s going wrong and fix it. No magic tricks here, just rolling up your sleeves and digging in.

How are you tracking your funnel performance right now? Whatโ€™s the one thing you reckon is the biggest leak?

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