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Retention Marketing Funnels: How to Design Customer Journeys That Keep Buying?

lifecycle marketing and customer retention
Last updated on
May 23, 2025

If your acquisition funnel is a sprint, your retention funnel is the marathon. Most brands obsess over the sprint - but sustainable growth comes from the marathon.

At Propel, we specialize in customer journeys that don’t stop at conversion. As a Platinum Customer.io Partner, we design retention marketing funnels that actually keep customers engaged, loyal, and coming back for more.

Let’s walk through how to design a retention funnel that drives revenue - not just clicks.

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What Is a Retention Marketing Funnel, and Why Does It Matter?

A retention marketing funnel maps the stages a customer goes through after they convert. While the acquisition funnel brings them in, the retention funnel keeps them buying.

What is a retention marketing funnel?

Let’s say you’re a subscription brand. You’ve acquired a customer. Now what? You onboard them → engage them → reward them → turn them into brand advocates. That’s the retention funnel.

What are the key stages of the funnel?

  • Onboarding
  • Engagement
  • Loyalty
  • Advocacy

Each stage needs dedicated flows and strategies.

How is this different from an acquisition funnel?

Acquisition: awareness → interest → consideration → purchase.
Retention: post-purchase → habit-building → LTV expansion → evangelism.

To see where strategy comes in, check out our customer retention strategies.

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How Do You Map a Retention Funnel?

Retention isn’t magic - it’s architecture. Let’s talk about how to map the right journey.

What are the key touchpoints post-purchase?

Let’s assume you run a DTC vitamin brand. Key touchpoints:

  • Day 1: Order confirmation + welcome
  • Day 5: Product usage guide
  • Day 20: “Are you running low?” reminder
  • Day 30: Ask for a review or refill
    Map your own version based on time, action, and behavior.

What tools help with journey mapping?

Use:

  • Customer.io or Braze for flow-building

  • Posthog or Mixpanel for event tracking

  • Miro/FigJam for visual mapping

How do you align journeys to real needs?

If users churn after the first order - ask why. Did they:

  • Not know how to use the product?

  • Not see results?

  • Forget they subscribed?
    Your retention funnel should address the why behind drop-off.

If you need external help building this, our retention marketing agency does it all - from mapping to execution.

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What Strategies Work at Each Funnel Stage?

Each funnel stage needs its own playbook. Let’s break it down.

Onboarding: Personalized Welcomes + Early Value

Let’s say a user signs up for your software. You should:

  • Send a welcome email personalized to their use case
  • Trigger in-app tours or feature highlights
  • Set a goal: “Get value in the first 5 minutes”

Engagement: Nurture Habit-Forming Use

Think:

  • Weekly value emails (not product updates)
  • Push notifications tied to behavior
  • Check-in surveys after inactivity

Loyalty: Make Them Feel Special

This includes:

  • Points programs
  • Surprise gifts
  • Loyalty tiers with naming (e.g. “Insider”, “OG”)
    Tools like Klaviyo or customer retention software automate this beautifully.

Advocacy: Turn Users Into Evangelists

If someone’s ordered 5 times - give them a shareable referral code.

  • Feature them in a testimonial
  • Invite them to product beta groups
  • Create a “VIP” badge or status

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How Do You Use Data to Optimize Retention Funnels?

You can’t improve what you don’t track. Let’s talk metrics.

What are the key metrics to track?

  • Churn rate
  • Retention rate by cohort
  • CLV (Customer Lifetime Value)
  • Repeat purchase rate
  • Time-to-second-order

What tools help monitor this?

  • Mixpanel
  • Amplitude
  • GA4
  • Segment
  • Custom dashboards in Looker or Tableau

How do you act on this data?

Example:

  • Churn spikes after month 2 → build a “Month 2 reactivation” email
  • CLV low for a specific segment → test better upsells or content

Our full set of customer retention statistics breaks down what “good” looks like.

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Which Brands Do Retention Funnels Right?

Let’s look at three types of companies who’ve nailed this.

Company A (SaaS): Airtable

  • First-use flow is personalized
  • Celebrates milestones (“You created 3 tables!”)
  • Drives habit and collaboration

Company B (Ecommerce): Glossier

  • Sends replenishment emails just before product runs out
  • Uses post-purchase check-ins: “Did you love it?”
  • Follows up with UGC prompts and referral codes

Company C (Subscription): Book of the Month

  • Tracks skipped months and reactivates with sneak peeks
  • Offers loyalty add-ons for long-term users
  • Uses feedback loops to refine offers

For ecommerce-specific examples, explore our retention guide.

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Must Read for You

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Conclusion – Build a Funnel That Feeds Your Growth

Retention funnels aren’t just about emails - they’re about systems that guide every post-purchase action. From onboarding to loyalty, each stage should nudge the user closer to repeat value.

At Propel, we help brands do exactly that. As a Platinum Customer.io Partner, we build automated funnels that grow LTV, reduce churn, and turn customers into superfans.

Book a call now - and let’s design your retention engine.

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FAQs About Retention Marketing Funnels

Good learners always have follow up questions! If you have one, see whether our FAQs list covers it. If not, shoot an email to the expert at - raj@propel.bz!

What is the difference between a retention funnel and a sales funnel?

Sales funnels aim to convert. Retention funnels aim to keep.

How do I measure the effectiveness of my retention funnel?

Track churn rate, repeat purchase rate, CLV, and funnel drop-offs. Use cohort analysis to see where you lose users.

What tools can assist in building a retention funnel?

Customer.io, Klaviyo, Braze, and MoEngage for automation. Mixpanel and Amplitude for funnel tracking.

How often should I update my retention strategies?

Quarterly at minimum. Review data monthly and optimize based on segment behavior.

Can small businesses benefit from retention marketing funnels?

Yes - and even more than big ones. Small tweaks = big revenue shifts when done right.

Author
Rushabh Menon | Propel
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