Conversion Funnel – An Overview
Understanding the perception of the conversion funnel and its concept can be very useful as this model helps to visualize the journey of a customer, starting from initial awareness which goes this the final conversion. It is an important framework as it helps an entrepreneur to analyze his business and further decide on what improvements are to be made.
What is a Conversion Funnel?
Conversion funnel which is also known as ‘sales funnels’ is a model that describes the different stages in a buyer’s journey leading to purchase, divided into the upper, middle, and lower funnel. In simple words, one can say it is a process that understands the conversion of prospects that are potential to customers. In digital marketing, the sales conversion funnel is a mission that continuously involves growing, keeping, and getting to know the base of the customer. This entire process uses technology and other available tools to meet the customer’s needs and demands, to satisfy them.
It is very important to about conversion funnel optimization to be able to understand it better.
All about Conversion Funnel Optimisation
Conversion Funnel follows the traditional AIDA model. Here, AIDA stands for Awareness, Interest, Desire, and Action. Not all the customers reach the final stage but many drop-backs in the initial stages as well. It is the duty of the marketer and the salesperson to think about ways to optimize and test the funnels innovatively. The customers require an explanation for a smooth transition, i.e the transition from the top of the tunnel to the bottom.
The process begins when a person visits a website through various marketing channels. This process mainly involves attracting customers and shoppers to the website. In this step, the entrepreneur needs to know the reason behind a person getting attracted to the site, be it, the blogs, social media, products, PPC, etc. Referrals, outbound efforts, inbound marketing are some of the ways through which a person becomes aware of the offerings, brand, and product. On getting this data, it becomes easier to understand which segment to target and what further changes are needed to make the site profitable.
The goal of the site in this phase involves piquing the visitor’s interest and further keeping them engaged. The key to success here is content and also creating measurable pieces. This involves discounts, offers, or content that is of high value in exchange for an email, etc. As it is known that “The first impression is the last impression”, so carousel images, banners, and headings on the site can make a huge difference as well.
In this phase, it is very important to alleviate the visitor’s pain points and nurture and grow. It is very necessary to give the customer extra attention when they finally reach this point. This can be done through valuable content, pictures, videos, and emails about the services or products offered. The visitor will proceed to the next stage only if he is satisfied with this one.
This is the step where the customer in the funnel decides to convert or buy the event because of which all this was set forth. Only a small number of prospects take action. The entrepreneur or the salesperson in this stage needs to make sure that there is no friction in the webpage to make the conversion happen successfully.
To improve the website and make it profitable, it is necessary to analyze the funnel.
Conversion Funnel Analysis
The analysis of a conversion funnel helps to know which area needs the most work on. Here, the percentage of people that make it to the next step is displayed. This tool, as said helps to improve the business. On evaluating AIDA steps, it gets easy to understand the percentage of the number of users involved in each step. The steps to analyze conversion funnels are:
- Identifying the goal (Sales lead, transactions, etc)
- Measuring the baseline for each of the four steps involved in the conversion funnel
- Brainstorming hypotheses as well as finding ways for improving the customer’s experience.
- A/B testing the hypothesis
- Rolling out the test results that are positive to the users
A good funnel conversion rate is something between 3.1 % to 5% according to most of the experts. This rate can be improved by growing the organic search traffic, leveraging social proof, conducting a split test, keeping the CTA’s and form simple, creating urgency, making funnels that are data-driven, retargeting campaigns, etc. In the end, anything above 2% is good.