A conversion funnel is a term in eCommerce that illustrates the customer journey from awareness to purchase. It helps marketers guide shoppers to do the desired action, which is to convert.
The term can also refer to the different stages of the buyer’s journey, which are awareness, interest, desire, and action. It is a continuous process that has brands grow and keep their customer base.
The metaphor of the tunnel visualizes the dwindling of shoppers who are curious about your product to become customers who bring in profit. It is also occasionally referred to as the sales funnel.
The Four Stages of a Conversion Funnel
The following are the stages of a conversion funnel which all have the ultimate goal of driving conversions:
- Awareness. To draw customers in, you have to raise awareness of the products and services that you have on offer. You can do this by determining what drives traffic, posting advertisements, and taking advantage of social media, among others. Brands can allot more of their budget to efforts that attract shopper attention.
- Interest. Once you have shoppers aware of what you have to offer, it is then up to you to hone their interest in your brand. Brands and retailers can do so through meaningful content, personalized recommendations, and discounts and promotions. They can also keep it going with intuitive navigation and a harmonious website.
- Desire. Shoppers who reach this stage are one step behind converting and should be nurtured to take action. Some of the actions brands and retailers can take are upselling, cross-selling, and offering discounts and exclusive promotions, to continue to engage customers.
- Action. The final stage is where marketers want to take customers. This is where shoppers finally make conversions. To minimize churning, brands and retailers should make the checkout process as seamless as possible. This could entail offering free shipping and having all major methods of payment available.
How Can You Optimize It?
The conversion funnel helps marketers optimize and understand the purchase process. Brands and retailers can effectively distribute their funds and efforts when they know where and how they attract the most customers. It also gives them a basis for creating a business plan.
Here are some of the ways to enhance the process and drive conversions:
- Send email reminders to customers who have abandoned their carts. This gives them an easy way back to continue the purchase.
- Use recommendation carousels to make it easy for customers to connect to their desired items.
- Create unique, meaningful content that can engage customers and provide more information on the products and services you have on offer.
- You can take advantage of social media by planning posts and engaging with followers.
- Show user-generated content that helps instill trust in your products.