Conversion Funnel

What is a Conversion Funnel?

Conversion funnel is an eCommerce term that describes the different stages in a buyer’s journey leading up to a purchase. The funnel metaphor illustrates the gradual decline of the number of potential customers as they are guided through the conversion path. The conversion funnel is often divided into “upper funnel”, “middle funnel”, and “lower funnel”, which helps to determine the right marketing tactics to increase conversions.

The Levels of a Conversion Funnel

Although the model of your conversion funnel will largely depend on the type of business you’re running, it is typically broken down into 4 levels: “awareness”, “interest”, “desire”, and “action”. The purpose of building a conversion funnel is to have more people traveling through each stage and ultimately completing the last step or taking the desired action. Even though every stage in the funnel has its own purpose, such as to attract new visitors or to build their interest in your products, the one overarching goal is to drive them to the final conversion stage.

When you map out your conversion funnel, you will see that only a small percentage of the visitors that land on your website actually reaches the final level. That’s why even the smallest improvements at each level can have a significant impact on your bottom line. To optimize your conversion funnel you have to understand your customers’ behavior and identify the causes of the funnel “leaks” at each stage.   

How to Optimize your Conversion Funnel

The easiest way to start thinking about your sales funnel optimization is by breaking it down into the major portions – upper, middle, and lower. The function of the upper funnel is to attract new visitors. The middle funnel is responsible for turning new visitors into qualified leads and the lower funnel is where the macro conversions, or purchases, happen. Each part of the conversion funnel should be approached differently, therefore, different marketing techniques are employed.

  1. Optimizing your keywords for paid search and display ads
  2. Recalibrating the targeting of your social media ads (Facebook, Instagram, LinkedIn)
  3. Creating unique, keyword-optimized content (blog posts, eBooks, guides, infographics, videos, etc.)
  4. Capitalizing on the power of social media

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Justas Markus: CEO & Co-Founder of GetFound XL and a blogger at Entrepreneur.com, Observer.com, Influencive.com and others. Catch up with Justas on Twitter.