Funnel Analysis

Funnel Analysis: How to Increase Conversions on Your Website

by Raja Mehar

Lately, there has been a lot of talk about funnel analysis and how it can help improve your business.

Simply put, your conversion funnel is a roadmap of your business. It can help you determine the exact direction of marketing efforts and enable you to be on the same page with your team.

By analyzing your conversion funnels, you’ll be able to gather and invaluable customer data that will eliminate the need for any guesswork.

With these factors in mind, it should be clear why understanding your funnels matters. But how can you use them to boost sales and increase conversions on your website?

Let’s take a look.

What is a funnel?

To understand what a funnel is, you first need to understand how customers interact with your business.

Potential leads will come across your ad or hear about your business in some other manner. Then, they will look up your brand online and visit your website.

In an ideal world, after spending some time browsing your website, they will finally make the desired action, which could be:

  • Signing up for your newsletter
  • Subscribing to your social media pages
  • Hiring your services
  • Purchasing your products

The journey your prospects take from simply checking out your website to fulfilling the desired action is a crucial part of your funnel.

In other words, a funnel is an analytical method that will enable you to gather various data on how your customers move through and interact with your website.

The name term “funnel” comes from the top-down nature of your customer’s journey. Their first interaction with your website sits at the wide top while taking the desired action is the funnel’s narrow bottom.

Therefore, by analyzing your funnel and understanding each individual step, you’ll be able to identify the right approach that will encourage your visitors to take this top-down journey and convert.

Types of funnels

There are two types of funnels you need to pay attention to: the marketing funnel and the sales funnel.

And even though these two are often considered to be one and the same, there are some important differences between them.

That being said, let’s see what they are and how they interact with one another.

●        Marketing funnel

The main goal of the marketing funnel is to raise your brand awareness.

If you have separate marketing and sales sectors in your organization, the top of your sales funnel will be the bottom of your marketing funnel.

The process of building your marketing funnel consists of three major steps:

  1. Capture – capture as many details about your visitors as possible to be able to understand them better
  2. Engage – engage with your prospects by sending them the right type of information about your business at the right time
  3. Nurture – the point at which a prospect is “handed over” to the sales team

●        Sales funnel

Once your prospects display the intention to make a purchase, this is where your sales funnel begins.

The steps of the sales funnel include:

  1. Qualify – once the prospect displays the intention to buy, they become sales qualified leads
  2. Contact – during this step, your sales team will reach out to sales qualified leads to encourage them to travel further down the funnel
  3. Convert – your sales representatives manage to close the sale and convert your prospects into paying customers

Understanding your unique conversion flow

Now that we understand what a conversion funnel is and how it works, it’s time to discuss how to create one.

Depending on the type of business you run, the number of steps in your funnel may vary. Nevertheless, you need to make sure you offer your customers:

  • The option to find your business easily
  • Further education about your offer
  • Guidance through all the reasons why your business is the best match for them
  • Help with making the right choice
  • The chance to smoothly go through the buying process

Once you establish these steps, it’s time to move on to visualizing and analyzing your funnel.

Visualizing and analyzing your conversion funnel

By visualizing your funnel, you’ll be able to track your analytics more carefully, which will help you pinpoint the exact places where your prospects bounce off.

This will make it easier to identify the problem areas and fix them, which will result in increased conversions. With the right tools and software solutions, this will be easier than ever.

According to New York software developers, having the right tools at your disposal is mandatory.

Three stages of funnel optimization

Once you’ve designed and visualized your conversion funnel, it’s time to move on to optimizing it for maximum performance, which will boost your overall customer satisfaction and conversion rates.

1.      Identify customer segments

The first part of your optimization strategy will revolve around segmenting your customers.

Not all customers are equally valuable, which means that not all of them will require the same amount of effort or resources. Here, you will need to pinpoint the segment of your conversion funnel that brings in most of your customers.

For instance, if your email marketing brings in more customers than your paid ads do, this is the part of your funnel you need to focus more on.

That said, the ROI of your email marketing efforts will be significantly greater than that of paid ads, as email marketing is one of the cheapest forms of online marketing.

2.      Fix the biggest issues

The next step is to pay attention to the parts of your sales funnel that drive customers away. Identifying these areas will help you improve your funnel, making your customers more likely to convert.

For instance, if you notice that about 40% of your customers bounce off once they add an item into their cart, this may indicate that there’s an issue with this part of your funnel, such as lack of trust in your business or some technical issues.

Custom web development professionals emphasize the importance of offering your customers a stellar digital experience, which will lead to increased conversions and greater customer satisfaction.

This is particularly important to keep in mind and pay attention to, as satisfied customers are more likely to recommend your business further.

3.      Adjust the steps in your funnel

This final stage will include adding or removing steps from your funnel, depending on the type of business you run and the audience you’re catering to.

If you’re selling a very specific product or trying to attract a very specific audience, you can get away with minimizing your steps.

A great example of this is the 1-step-checkout some businesses, such as Amazon, have implemented. By enabling your customers to move through your funnel quickly and seamlessly, you’ll ensure that your conversion rates continue growing.

In the end, the most important thing to remember is that without a good funnel analysis, you won’t really be able to better your business.

The more you understand your audience, the easier it will be for you to customize your offer to suit their specific needs. And with the help of a good funnel analysis, you can do that with as little effort as possible.

Ellie Northcott is a long-time marketer, currently working as a freelancer in Miami, Florida.

Editor at Digital Strategy One.

She is also a passionate writer and loves to explore new, innovative and digital news.

In spare time she is an eco activist.

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