What Are Conversion Funnels?
Conversion Funnel Elements to Measure
Impressions - number of times an ad is seen, whether clicked on or not.
Clicks - number of people who follow an ad link to a web page.
Visits - someone visited your landing page or website.
Viewed Product/Service - someone viewed a product page.
Added Product to Basket - visitor adds a product to checkout basket.
Started Checkout - someone starts the checkout process, submits a lead form, or calls
Completed Checkout - a customer performs a completed transaction/sale.
Most new online marketing campaign conversion funnels look like the first or second funnels, and improve from there. Let's look at each of the six conversion funnels in more detail.
1. The START funnel is usually a limited promotional campaign or advertising test, that has little exposure, persuades a low number of prospects, and converts very few into sales.
Marketers at this stage of the conversion funnel are usually struggling with simple issues such as:
- Which publishers should I source leads from?
- What staff have the skills to execute my online campaigns?
- Which systems should I use to publish and track my results?
- What does success look like?
2. The LEARN funnel describes the shotgun approach of many marketers who launch a big ad campaign that targets many of the wrong types of people, resulting in poor persuasion and conversions.
Marketers at this stage of the conversion funnel are asking themeselves things like:
- Which keywords should I target and why?
- Can I scale this channel to meet my sales goals?
- What will it cost me?
- How relevant is my offer/product/service to prospects?
3. The REFINE funnel describes a more refined and targeted marketing approach that's a bit more efficient up front, doing a better job at prospect targeting but a poor job at persuasion and conversion.
Marketing teams at this stage of the funnel optimization process are doing things such as:
- Pausing ineffective keyword bids
- Adjusting their ad spend in various channels
- Testing new ad creative (copy, banners, offers, LP's, etc)
- Trying new lead sources
4. The CONVINCE funnel is generally good at targeting, pretty good at persuasion, but poor at converting.
Marketing professionals at this stage of the funnel optimization process are working hard at:
- Trying various messaging
- Establishing trust
- Performing A/B tests
- Providing more relevant experiences
5. The IMPROVE funnel is good at targeting, bad at persuasion, but better at conversion.
Marketers at the IMPROVE stage of the funnel optimization process are performing tasks such as:
- Understanding customer needs and behaviors
- Managing hundreds of ongoing multivariate tests
- Refining processes and removing barriers
- Testing segmented offers and incentives
6. The PROFIT funnel is great at targeting, persuasion, and conversion. The funnel is wide enough to attract the right prospects without being inefficient and does a good job helping educate, persuade and convince prospects to convert into customers at a favorable ROI.
Marketers at the PROFIT stage of the funnel optimization process have:
- Hired an experienced internal team of employees/outsourced to a qualified external agency
- Launched re-marketing initiatives to better lost prospects
- Set up daily (or even hourly or real-time) monitoring of key performance metrics
- Ventured into tier 2 lead sourcing and optimization