Conversion Funnel

“Conversion funnel” is derived from the area of e-commerce, the sale of products or services over the internet. Conversion funnel is a term used to describe the individual elements of a conversion and is an important tool in website optimization. It refers, for example, to a conversion of a visitor into a buyer.

With conversions, the so-called conversion rate can be measured. This is the percentage of all visitors who have eventually converted. The success of marketing activities is measured using the conversion rate of online shops.

The conversion funnel

The word “funnel” generally means a tube or pipe that is wide at the top and narrow at the bottom, and is used in this context because the number of Internet users is always reduced at each step between the first click and the actual order. The goal of conversion funnel optimization is to minimize the number of lost visitors as much as possible in order to increase sales within the existing budget.

The conversion funnel is followed by every internet user from clicking an ad through to ordering the desired product or the desired service. The individual steps within a conversion funnel are called “micro conversions.”

Phase example

The first Internet user phase is the landing page. Landing pages are designed to present an optimized website to users, customized for their needs. They are usually used in promotional actions and do not lead visitors to the home page of the company, but directly to the product page where visitors can inform themselves and make the purchase. Within the scope of the customer journey, a landing page can also be called 'targeted page', which the user reaches via organic search or through a click on an advert.

The next step is the online form, in which visitors enter data such as their given name, surname, payment method or delivery address. Through another button, the prospective buyer reaches the next page which confirms the information. The final phase consists of a page on which the user completes his order, thereby completing the conversion.

The conversion funnel is essentially a funnel through which every phase fewer users are left, and in the end only those remain who complete the conversion.

Optimization options

According to the study “eCommerce Trend Report 2004” conducted by DoubleClick, only about a quarter of all online store visitors in 2004 completed the purchasing process in the same session. According to the study, the majority of the buyers returned after 2 weeks to complete the purchase process. To increase the likelihood of an immediate purchase, various optimization approaches can be applied. The recognition of customers is according to this study of great value and can motivate them to buy.

To reduce the risk of potential customers dropping out (bounce rate), the landing page should be suitable to the search query of the user. Through this, trust signals such as high usability and performance of the website can increase the chance of a conversion. A precise analysis of all relevant phases of the funnel can provide information about possible problems. Usability Tests can also make weaknesses in the ordering process known.

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