You undoubtedly want visitors on your website to take certain actions. Maybe you want them to make a purchase, sign up, or fill out a form. When someone does something you want them to do, it’s known as a conversion. The visitor converts from browsing to taking the action you want them to take. A funnel is the set of steps a visitor needs to go through before they can reach the conversion. Think about the Amazon purchase funnel. There are a few steps a visitor has to go through before they can purchase a product. Here’s how it looks:
There are additional steps/actions that can be taken in between each of these steps, but they do not matter in the purchase funnel. For example, a visitor may view Amazon’s About page, Contact page, and Careers page, but we don’t need to count these in the funnel because they aren’t necessary steps. Why is the set of steps to conversion called a “funnel”? Because at the beginning of the process, there are a lot of people who take the first step. Then, as the people continue along and take the next steps, some of them drop out, and the size of the crowd thins or narrows. (And even further along in the process, your sales team gets involved to help close the deal).
The top of the funnel is where everyone goes in (visiting your site). Only the most interested buyers will move further down your funnel.
So when you hear people say “widen the funnel,” you now know what they are referring to. They want to cast a larger net by advertising to new audiences, increasing their brand awareness, adding inbound marketing, etc. in order to drive more people to their site, thus widening their funnel. The more people there are in a funnel, the wider it is.
You aren’t limited to using your funnel strictly for signing up and/or purchasing. You can put funnels all over your website to see how visitors move through a specific website flow.
You may want to track newsletter signup (Viewing newsletter signup form > Submitting form > Confirming email) or a simple page conversion (Viewing a signup page > Submitting signup).
Figure out what your goals are and what you want visitors to do on your site, and you can create a funnel for it.
Once you have the data, you’ll be able to see where roadblocks are and optimize your funnel. Let’s dig a little deeper into that.
With a funnel report, you can see where you are losing customers. Let’s take your average SaaS (Software Sold As A Service) business as an example. Here’s how a funnel may look for them:
Do people have to use the product before paying? They don’t, but it’s a good idea to track it so you can see if it’s a roadblock for them.
A Funnel in Real Life Funnels occur everyday with consumers. Let’s look at the funnel process for a retail store and see the corresponding steps in an e-commerce store. We’ll be tracking a purchase funnel.
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