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Conversion Optimization

5 stages of an eCommerce conversion funnel (+ways to improve each step)

Want to boost your conversion rates? It starts with your conversion funnel. Here is a founder-focused guide to building an optimized eCommerce conversion funnel.

5 stages of an eCommerce conversion funnel (+ways to improve each step)

Don’t be intimidated by the term ‘conversion funnel’.

If you run a business, you already have a conversion funnel in place. 

And that’s a good thing.

Now, all you need to do is optimize the conversion funnel to make the most out of it.

Don’t know where to start? We’ve got you covered. 

In this post, we cover the basics of a conversion funnel and the different stages involved in an eCommerce funnel.

So, what is a conversion funnel?

In simple terms, a conversion funnel is a journey each customer goes through consisting of different stages on the website that ultimately lead to conversion.

The different stages include the homepage, product pages, cart pages, and checkout pages. There is a significant drop-off of the visitors at each stage and the number becomes smaller as you get closer to conversion. 

As an eCommerce business owner, your job is to discover weak areas and optimize them so there’s a lesser drop in customers at every stage. 

The conversion funnel is divided into three stages: upper funnel, mid-funnel, and lower funnel.

eCommerce conversion funnel

Upper Funnel: The upper funnel or top of the funnel is when the users get to know about your brand. They might come to your website to check the products, pricing, and for overall experience, and then could go to a competitor's website to compare. 

Mid-funnel: At this stage, customers actively know about your brand and explore the offerings at a deeper level with a greater likelihood to purchase.

Bottom funnel: This is where the magic happens. Leads become customers, which increases your conversion rates.

The 5 stages of an eCommerce conversion funnel (& solid marketing ideas for each one)

A standard eCommerce funnel usually has four stages: Awareness, Interest, Desire, and Action.

And then comes the fun bit: Re-engagement. Bringing ‘em back & continuing through the cycle.

You can use this marketing funnel to understand where your customer is and what can be done to move them to the next step.

eCommerce conversion funnel

1. Awareness (how to TELL people)

This phase is where you’re working to attract customers who might be interested in buying your product. 

Here, visitors get to know about the brand.

They look at the products or the services you offer and decide if they like the brand and what you have in store for them.

This stage requires educational content from you. You need to tell customers why your brand is better than others. 

Take the help of inbound and outbound marketing, blogs, webinars, guides, social media, etc. — anything that can make visitors aware of your products and services.

While you can reach out to many users at this stage, make sure that you’re targeting the right audience who is more likely to make it to the next step. Otherwise, you’re spending your time, energy, and thousands of marketing dollars for no real impact. 

As you move forward, keep your target audience in mind who are more likely to give you conversions soon — if not immediately.

🚨 Convertcart Actionable Insights

a. Grow your audience with the Facebook Lookalike strategy

Facebook has a capability that helps businesses reach wider audiences. The Lookalike strategy allows you to target new people similar to your ideal customer. 

While it might sound similar to the Adwords “Similar Audiences”, the major difference is that Facebook's feature is not based on certain defined parameters. Rather it finds people having traits, interests, and disinterests similar to the profiles suggested by you. This way, you can reach a wide but relevant audience. 

Here’s how you can set up Lookalike Audiences on Facebook:

  • You can either do this during the Ads creation process using Ads manager or go to Audiences
  • Create audience > Lookalike audience
  • Choose the source. This can be from your pixel data or can be a custom audience. 
  • Pick the desired country/region
  • Pick the ideal size. Don’t keep it too wide. Facebook recommends the range of 1000-50,000. 
  • Click on Create Audience
  • It takes up to 24 hrs to create the audience and about 3-7 days to update the target for any active ads
Facebook Lookalike Audiences
b. Find negative unsatisfied customers of your competitors online

When a customer is unhappy with a product or a brand, they are usually quite vocal about it. This dissatisfaction is usually expressed through negative reviews on Amazon or the website. 

As a competitor, this is a pool of high-value customers. These people are looking for a better way to solve their problems or satisfy their wants. This is the right time to jump in and capitalize. 

This certainly does involve some grunt work but it will be worth it. Find these reviews on Amazon or the competitors' websites and go through their public profiles.

You might not be able to connect with them immediately but you can study their activity online. Look into what products they buy, why they don’t like a product, what their needs are, etc. 

With this information, you can update your Audiences on Facebook or Google to run more effective ads. 

Another quick hack is to be active on Quora.

Try searching for ‘reviews’ and the name of the competitor. You’ll surely find a couple of unhappy customers. You can respond to them with a convincing pitch and draw their attention to your brand. 

The key to success here is to identify their needs and what was missing in the competitor’s product. Based on this, you can tailor your pitch to drive more conversions. 

Marketing on Quora
c. Partner with the right brand for a coalition loyalty campaign

Coalition programs are nothing new but many eCommerce stores stay away from them either due to poor experiences or lack of justifiable ROI. 

The key here is to find the right partner to work with and build a more long-term relationship with them. 

While they certainly help in reducing the costs of acquiring new customers, they are a great way to gain access to unique customer insights and behavior. 

When choosing your ideal partner, there are a couple of aspects to consider:  

  • Relevance to your brand (Can you pitch an offer together?)
  • Is it a highly dependent relationship? (It has to be. Otherwise, you risk losing partners in a short period.)
  • What do they have to offer and what can you give in return? 

Once you have the right partner, keep the following tips in mind when creating a loyalty program:

  • Run collaborated surveys to gain maximum insights before drafting the program. 
  • Bundle your products smartly. You can use this opportunity to clear some slow-moving stock while getting new customers to your best-selling products.
  • Get more from your customers - social shares, referrals, and a comprehensive review of certain products. 
  • Have tier-based rewards systems - for instance, if they promote your product, get a valuable referral, and are frequently participating in your sales campaigns, they get a high-value freebie. For just a social share, they could earn a flat 10% off any product.
Hey, you'll love this: 14 eCommerce Loyalty Programs Backed By Science (Examples)
d. Find channels that drive relevant traffic

When you are targeting broad, you’re casting a wide net and trying to poach people who may not be interested in your product or service.

To attract leads that have the possibility of becoming customers, you need to figure out where your best traffic is coming from. 

The answer lies in Google Analytics’ referral source reports

Go to your Acquisitions → Overview, and you’ll see a report similar to the one below:

Google Analytics’ referral source reports

On the top, you can see the channels bringing in the most traffic to your site. In this example, it’s Direct. 

Next to that, you can see the average session duration, pages per session, and bounce rate. In the last section, you can see the channels bringing in the most conversions for your site.

But as you can see, this is sorted by the general channel type. 

So, the details such as which search engine you are generating traffic from and what’s included in the ‘other’ sources aren’t specified.

To view that information, open your All Traffic report on GA.

Something like this should appear:

All Traffic report on GA

Click on secondary dimension, choose source/medium and that will give you the breakdown of the search engines and other details about where you’re getting the best traffic and what can be done to leverage them more.

If you notice some of your ad campaigns bringing in traffic that is ultimately converting, invest more in those campaigns that can help to maximize visitors on your site who are looking for your product and are genuinely interested in buying it.

2. Interest (how to get others to CARE)

This is where you want to attract customers to your products or services.

Your website, content, and social media channels are the most powerful medium here. At this stage, you’re looking to create a relationship with your customers.

One of the ways to do so is by capturing their email IDs.

Send them blog posts, newsletters, in-depth guides, etc. which can tell them what you do and what you can offer to them.

Come up with attention-grabbing copy and creatives to get people to turn their attention. 

Have a well-executed layout on the website, blogs, product pages, and homepage for the right impression. Formatting can affect what customers think about the brand and therefore, impact the conversion rates.

🚨 Convertcart Actionable Insights

a. Promote UGC on social media and website

The best sales pitch is one that comes from your happy customers - this is a known fact. 

To pique the interest of your potential customers, send them user-generated content like social posts and positive reviews on Amazon or your website. This works better than generic newsletters, blogs, or discounts. 

Many customers add images and video reviews to your product listing on Amazon, this is the easiest source of user-generated content. No effort in marketing collateral. 

UGC on social media

Instagram is another easy source of such content. If you’re a new brand, you can easily leverage simple social proof like the above to build consideration towards your brand.

b. Have video-based product descriptions (include social proof)

Over a third of the audience prefer to learn about the product through a video. 

Many people, especially visitors from GenZ are more inclined to video and audio-based content. So, while it is important to have a creative and compelling written description, having a product video will help convert the younger audience. 

You don’t have to shoot an Ad style, high-production video. Something as simple as a presentation-style video of around 45 seconds to 1 min will do. 

Check out how video-based product descriptions are uploaded on Amazon.

Video-based recommendations
c. Proactively address queries through FAQs

Having an FAQ section on your website has plenty of benefits. It helps attract new visitors to your site through improved SEO. It is a proactive approach to customer support. Finally, it helps re-create a store-like experience. 

In short, it helps improve your performance during the Awareness and Interest stages. 

When creating an FAQ, avoid questions to do with the benefits of using the product. That should be covered in the description. 

Here, you’re getting a bit technical as well as covering a few things regarding customer support, privacy policy, and shipping information. 

What to avoid: “How is this product better than what’s out there?”

What to address: “What are the materials used to make the product?” or “If the product fails to work, can I get a replacement?”

To help you create a list of such queries, browse through Quora. Look at what potential customers ask about the product and a competitor's brand. 

You can also look at your competitor’s website and address those questions. This helps avoid any room for doubt when browsing. 

d. Introduce Live Chatbots 

Over 85% of visitors have had a good experience with a chatbot. 

Consumers feel that they are prompt, help address queries immediately and keep them engaged. 

So, at this stage, it is beneficial to have a chatbot set up to boost engagement.

If you have a store on Shopify, here’s how you can set this up:

  • Customize Theme > Customize Button.
  • Footer Option on the Left Side Panel.
  • Click Theme Actions > Edit Code.
  • From, you would need to copy and paste the code snippet of your preferred chatbot app. 
e. Run tests & collect data (always a good idea)

There might be many reasons that generally come into play why users don’t check out. But how can you tell which one is causing low conversions from this? With Heatmaps.

These maps are a visual representation of where your users focus their attention on the site and where they don’t. 

Check out this example:

Heatmaps example

The glowing areas are where the customers are focused. This means a majority of people are clicking on these areas. 

Since the purpose of this page is to drive more people to a CTA, it looks like they’ve done a good job in capturing customers’ attention & getting them to take action.

Now, say, this is what your heat map looks like:

Poor heatmaps example

How are you going to figure out where your customers are most focused? You can’t. 

That means you have some serious work to do.

Running heatmaps is the easiest way to gain insights into why your customers aren’t converting.

The other way is a rather obvious one. 

A/B tests.

You create two variations (Variation A and Variation B) and test them out against each other. After running the test, you see which variation generated more conversion against another. 

If you want to test which CTA will generate more conversions between orange and green, your test will look something like this:

A/B testing for eCommerce

Every time you learn about the possible changes for your site, you can A/B test them to know which one has the scope to bring more conversions.

Keep Reading: Data beyond Heatmaps — that top eCommerce brands track
f. Find where shoppers (generally) drop off

Each level of your funnel filters out users who aren’t interested and qualifies the others to the next level. Many users tend to leave by the side. 

These holes are called leaks in your marketing funnel.

So, how do you identify these leaks?

Open the sweet GA again.

If you have added funnels to your goals in GA previously, you can go to the Funnel Visualization Report.

Select “conversions” from the Analytics menu and then click on funnel visualization.

Once you come here, you’ll see a detailed visual representation of how users move through your website.

Funnel Visualization Report Google Analytics

The above screenshot is a breakdown of the journey a customer has taken on an online eCommerce store. You can see here at what stage you are losing the visitors.

You can see what steps they’re exactly taking rather than staying on your website.

From here, you’ll have to weed out what leaks are causing a significant dropout and which ones don’t make any difference.

Another way to do this is with the Reverse Goal Path report.

This report shows you how a visitor arrived at the conversion rather than how they moved through the funnel. 

You can also refer to the Goal Flow report for similar insights.

This report provides an analysis of the common paths taken by users from the beginning. Rather than telling you about their past actions, it helps you monitor them from the very start. 

This can help you learn more about visitors’ behavior and if their actions are in line with your conversion funnel, so you know if you should make any changes to your conversion funnel or not.

3. Desire (how to get 'em to WANT what you offer)

Once you’ve got customers interested in your brand, the next step is to make their desire stronger for your products/service. 

At this stage, customers are looking at the problem you can solve and how your solutions are different (and better) than what other companies are offering.

Once you have customers’ attention, talk to them about the benefits of the products, not features — to build their desire.

Use higher-level attention-grabbing methods to get them close to the product purchase. This would mean including high-resolution images, product descriptions, and a product video to entice customers to place an order. 

Make sure you gain some customer reviews after making a sale. This will give visitors an unbiased opinion of your products, and also provide other necessary information they need about the brand.

🚨 Convertcart Actionable Insights

a. Highlight security certificates and payment modes

Now that visitors are sold on your product, you need to let them know that your website and brand are trustworthy. 

About 15% of the visitors abandon their cart owing to concerns about security. 

SSL certificates, multiple payment options, and trust badges help get rid of these worries. 

The key here is to place them in the right place on your website. On the product page, place them right under the CTA button or the product title to grab their attention. If you run your store on Shopify, this is taken care of for you.

Here’s a quick example.

Security certificates eCommerce
b. Exit intents should have more than just discounts

You can save at least 10-15% of your visitors with a well-crafted exit intent popup. However, you need first to understand what a good exit intent popup looks like in today’s dynamic.

What it’s not - just another boring sales pitch with a discount offer.

Instead, change up the messaging to something a little more subtle. 

Here’s an example - rather than saying “hey, how about a flat 50 off?”, you can allow visitors to save the product to come back to it later. 

The image below is a clear example of this. 

eCommerce exit intent

As you can see, it’s not pushy with its messaging. It allows visitors to save their items of interest to later come back and purchase them. This way, you get some action from them without completely driving them away. 

c. Make it easy to compare options

It is pretty evident in the image below that visitors don’t buy something without doing enough research. About 24% of visitors state this as a reason for leaving a site.

The research is a comparison between what you offer and what is out there to find the best value for their money. 

Why buyers abandon shopping carts

At this stage when you have their attention, you certainly don’t want to risk losing them to a competitor. The solution? Bring the research to your site.

Create a comprehensive product comparison chart for your products and also include your competitors. 

Add in details that make you look better than the rest. If your price is higher, wow them with the features. Let them know that they only pay for good value. 

Don’t forget to add in reviews, ratings, and product specs. You can also add best-seller tags and a “Who generally buys this product?” section. 

Here’s a look at a well-structured product comparison chart. 

eCommerce product comparision

By the way, if you can’t name your competitors, just compile the information under “Other products/brands”. This way, you save yourself from a potential lawsuit without missing out on a sales opportunity.

d. Set goals for soft and hard conversions

Once you’ve established a flow for customers, the next thing you should do is measure how users are moving through your site. 

One of the easiest ways to do this is by setting up goals in Google Analytics. 

To measure how your conversion funnel is performing, you need to set goals at every step.

Each stage should have at least one goal and you can even set more if you want to.

Log into Google Analytics and go to Admin Settings. Select the view or the concerned page, and then click on ‘goals’ from the drop-down menu.

Goal setting Google Analytics

Next, click on New Goal on the upper left side. It should appear like this on your GA:

Goal setting Google Analytics

From here, you will have different options to set up your goals. 

Goal setting Google Analytics

On the top, there are different templates to choose from. These include online registration, submitting content, referring friends,  reading reviews, etc.

If any of these options match with conversions you want to measure, set up those templates and assign yourself a goal. 

For metrics that don't show up here, you’ll have to create custom goals.

Google Analytics allows four ways to do it:

  • Destination: When users visit a particular URL
  • Duration: The amount of time spent by the user on the site
  • Pages per session: Number of pre-set pages viewed by a user
  • Event: Action taken by the user on the element tracked by JavaScript

With each new goal, you can also add a funnel. This means you can add a list of pages that users visit before completing the action, which can later help to measure conversions more effectively.

e. Identify where micro-conversions happen

When you develop a funnel, look into the micro-conversions that need to happen before the macro conversion — of the visitor turning into a customer.

Some common micro-conversions can look like this:

  • Newsletter sign-up
  • Browsing specific pages such as product pages, category pages, homepage, etc.
  • Adding products to the cart
  • Product launch sign-ups, etc.

Your micro-conversions can include as many actions as you like, depending on the business type and site.

You need to segment what content the customers will see at different stages that will prompt them to move ahead.

Hey, have you seen this? 11 brilliant ways to get More micro-conversions (Updated 2022)

4. Action (how to PULL the trigger)

This is the stage when you want your prospective customers to add products to their shopping cart, type in the payment information, and finalize the transaction.

This is also the stage where most dropouts happen. 

Focus on your product pages and remove any kind of friction that can lead a customer to drop off. Examine your checkout page and make sure you have only included relevant fields to make the process quick and simple. Just making these small tweaks can make a significant difference in your conversion rates.

🚨 Convertcart Actionable Insights

a. Offer guest checkout option on the checkout page

Nearly 40% of visitors who abandon an online store do so because of having to create an account. 

When they’ve made up their mind to buy a product, you have very little time and very less room for error. 

Instead of having them sign up, offer a guest checkout option to make things faster.

Here’s how you enable it if you own a store on Shopify:

Shopify admin > Settings > Checkouts > Under the customer accounts section choose “Accounts are optional” > Save to confirm.

Here’s how it’ll look on your site:

Nordstrom guest checkout

An alternative to this is to enable Social Login. This allows you to gather all the information you need and connect with them post-purchase without having a long process. 

Etsy guest checkout
b. Reduce the number of form fields 

Marketo ran an experiment to test the effectiveness of 5 fields, 7 fields, and 9 field forms in converting visitors to a site. They found that 5 fields convert the best.

Restrict the details to just the email address, delivery location, and full name.

Following the 5-field rule, you can split the location into 2 fields and also add in a field for their contact information. 

Here's another study comparing usability performance and number of form fields:

Usability performance against number of form fields
c. Customers expect full disclosure (pricing and policies)

When customers are ready to checkout and purchase a product, they are convinced that it is worth a certain amount of money. 

But when they are about to make the payment, if they are met with a new, hiked-up price with little to no explanation, it is close to impossible to close the loop. 

That’s why you need to provide a clear explanation of the total cost including tax information and packaging fee. 

Apart from this, on the same page, mention the terms and conditions of your refund and return policy. Keep it crisp and straightforward to avoid any misinterpretation. 

Learn from Amazon when it comes to this step. 

Amazon policies
d. Measure the right metrics

To keep the cycle going in the right direction, you need to measure ALL the right metrics and accordingly find & fix gaps.

Here are 8 metrics that'll help you measure the effectiveness of your funnel at each stage:

Conversion rate: Measures what percentage of your total visitors actually convert into paying customers.

You can calculate this metric by using this formula:- Number of customers/ Total or average website visitors.

Click Conversion Rate: Similar to the previous metric, this measures the click-through rate to conversion ratio. For instance, if you ran an Ad campaign and it had 1000 clicks and 100 customers, it means that you have a 10% click conversion rate.

You can calculate this metric by using this formula:- Number of conversion clicks / Total clicks.

Cart Abandonment Rate: The rate at which your visitors leave your site without buying anything. In specific, how many visitors add something to the cart and then leave without completing the checkout?

You can calculate this metric by using this formula:- 1 - Number of completed checkouts / checkouts initiated x 100%

Add to Cart Rate: Measures what percentage of your visitors add an item to your cart.

You can calculate this metric by using this formula:- Number of add-to-carts / total visitors.

Customer Lifetime Value: Measures the value of each customer or the amount each customer has spent on your store to date.

You can calculate this metric by using this formula:- Average customer lifetime x average monthly spend x % gross margins.

Average Order Value: Measures the amount of money a customer spends on your store each time.

You can calculate this metric by using this formula:- Total revenue / Number of checkouts.

Repurchase Rate: Measures how many customers are coming back to buy more from your store. It could apply to your site or a single product.

You can calculate this metric by using this formula:- Number of customers who bought more than once in a particular period / Total customers in that period.

Returns: Measures what percentage of your orders are returned for whatever reason.

You can calculate this metric by using this formula:- Number of return requests / Total number of orders fulfilled.

Curious? Check out 7 unconventional product page Metrics for eCommerce (& insights)
e. Make your site really easy to navigate

There should be a clear path for a customer to follow. Whichever page a customer lands on, make sure there are clear steps after that. 

Every product page should highlight a shopping cart. The shopping cart should lead to a checkout page.

Each step of the conversion funnel should be designed to provoke action to the next step.

We saw a traditional conversion funnel above but this varies for different businesses. It can be as complicated or simple, depending on the steps and processes you want to analyze. 

Visitors arrive at the homepage or product page, add items to the cart, make the payment, and then checkout. Seems easy, right?

No. Because not every visitor takes the same path. 

When you’re mapping a conversion funnel, keep in mind there’s an ideal path you want a customer to take, and then there is a path that customer takes, which needs to be mapped and accounted for in the funnel.

eCommerce conversion funnel

You can create these different funnels when you are aware of user behavior and how you can convert them into customers.

If you attempt to push everyone through the same funnel, you’ll see no significant improvement in conversions because people may be taking different paths to reach your site.

Work backward.

Understand what’s the most important goal of your website. It could be sales, lead generation, or getting customers to sign up. 

Then look into what actions a customer should take to complete the step.

Convertcart eBook

5. Sales & Re-engage (how to get 'em BACK)

Most standard conversion funnels miss out on this stage but it’s extremely important for your business.

Your goal is not only to get one-time traffic but make these people come to you again. 

Retaining customers is the crucial aspect of growing a business and this step enables you to do that.

Invite these customers to sign up for newsletters and social media channels that will encourage repeat purchases. Send them a coupon code or discounts via email. Include personalized notes in the packaging to make a lasting impression in their mind. 

Make sure you’re not bombarding them with newsletters and promotional campaigns. That can negatively affect your brand’s image and can lead customers astray.

🚨 Convertcart Actionable Insights

a. Order confirmation emails - it's ONLY about the order

These types of emails are the first communication after the purchase and see 6X more open rates than other emails. 

So, it is crucial to ensure that you get these right. 

In all honesty, avoid pitching other products in these emails. This isn’t the place for that. It can make customers doubt the legitimacy of your brand. 

Instead, focus more on providing every detail your customers need to know:

  • The order summary
  • When they ordered it
  • When they receive/expect to receive the order
  • The mode of payment used and the payment status
  • The break-down of the cost, including taxes and shopping breakdowns
  • Refund and return policy (just the important details)
  • Contact information of the customer support team

Here’s a good example of the format of transactional emails by Fitbit.

Fitbit email marketing eCommerce
b. Welcome them creatively

Since the goal here is to drive them back to your website to buy more, your welcome emails need to do more than just saying “welcome to the clan”.

And welcome emails are the best place to be creative as they perform better than your typical transactional emails by 300%.

There are 4 important aspects to focus on here:

  • Strong subject line and headline
  • Crisp and sticky copy
  • Smart placement of the CTA
  • Compelling incentive

Let’s look at a few examples of good welcome emails and break them down.

DogVacay email marketing eCommerce

In the above email, the purpose is much more than to say welcome. They present a quiz to the customer to keep them engaged and gather more data for further campaigns and emails.

The headline “You’re part of the pack” is crisp and eye-catching. 

As you read the email, you’ll notice that they don’t offer a typical incentive. Instead, they tap into their fun side and use “cute puppy pics” to draw in customers. Overall, the copy, creativity, and incentive are very reminiscent of their brand’s voice. 

Casper email marketing eCommerce

There’s a lot going on in the above email but it’s all with purpose. To begin with, there is a clear social proof presented while welcoming the reader: “community over 1000,000”. This immediately gives confidence to the customer that they are in good hands. 

The email continues to assure customers by re-visiting the benefits of the products with their “Here’s what you’ll get” section.

Finally, it provides a simple tip and non-pushy sales pitch to drive them to the website. 

So, Social Proof + Content Marketing + Sales Pitch = Here’s my money!

Keep Reading: 7 surefire ways to grow your email list in 2022
c. Exclusive early access to products

Exclusivity surely drives interest from customers. We all know this.

So, during this stage of the funnel, it is easy to drive that sense of exclusivity within your customers. 

However, you need to build a segment of your audience to pitch to, based on behavior and their interaction with your brand. 

This includes purchases from your store, searches on your site, page visits, etc. 

The more focused the group, the easier it is to create that feeling of exclusivity. 

Based on this, your campaigns need to be subtle and give out very less. Draw them on the website or landing page to reveal the product. 

Here’s an example of an exclusive product launch email:  

Email marketing eCommerce

BONUS: Frequently Asked Questions

What is an eCommerce funnel?

An eCommerce funnel is the segmentation and sales process of your business.

It's an organized system that allows you to set goals and track how well you are performing with leads and conversions.

An eCommerce funnel is made up of multiple steps or stages that will guide your potential customers through different steps to ultimately end up making a purchase.

What is a good funnel conversion rate?

3.1% to 5%.

The Adobe Digital Index 2020 report found that most funnels convert at a rate of around 3.1% to 5%.

This of, course, can then be seen by the industry with gifting bagging the highest (4.9%) and consumer electronics bringing only a mere 1.4%.

What is another name for a conversion funnel?

Generally known as the conversion funnel, it can also be referred to as the sales funnel or the AIDA funnel.

What are the stages of an eCommerce funnel?

Generally seen as AIDA, the sales funnel takes you through four stages namely Awareness, Interest, Desire, and Action. With eCommerce, you can also introduce the fifth stage with Re-engagement.

How do I build an eCommerce sales funnel?

An eCommerce funnel is a sequence of steps designed to help an online store convert visitors into customers. The goal of a sales funnel is for your customers to complete the conversion or purchase process, which generally generates a monetary result for you.

The steps can be created manually or automatically depending on the eCommerce platform you use and what tools are available. You can follow the steps outlined above to create an effective eCommerce sales funnel.

Do sales funnels really work?

The short answer is — yes. Sales funnels were created for eCommerce businesses to increase conversion rates so that you can make more money from every customer. eCommerce is a business that relies on every conversion to turn a profit and, again, sales funnels increase the chances of your customers converting into paying customers.

How do funnels work?

The eCommerce funnel is an exciting and inspiring concept in online marketing. The concept of an eCommerce funnel revolves around moving an average customer through a series of stages as they progress through their purchase cycle — thereby increasing the likelihood that they will complete their purchase.

Wrapping up

Creating a conversion funnel can be challenging, but it becomes easier to patch the holes and bring in more sales with insights and data. Remember the four fundamentals of a conversion funnel — awareness, interest, desire, and action, and move up from there. 

Take your time learning about your audience and what they need to convert and then optimize your funnel depending on the results.

A customer’s journey is not linear — but the more you know about their behavior and history, becomes more predictable and recurring.

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