The analysis and optimization of the conversion funnel (also called sales funnel, marketing funnel) is an important task in online marketing. The Conversion Funnel shows the individual, measurable stations that a customer goes through until he makes an order (conversion). Each part of the conversion funnel is a micro-conversion. Selling the product (or service) is the real conversion.
The goal is to increase the conversion rate of each subset of the conversion funnel, ultimately generating more sales. It is normal for the number of users to decrease with each step towards the end of the conversion funnel. Measurable values include the bounce rate, exit rate, conversion rate and, of course, the number of micro-conversions.
TYPICAL CONVERSION FUNNEL:
Search Engines (Organic Search, AdWords)
Landing page (Category, product page)
The analysis of the conversion funnel should show possible weak points, which have to be eliminated in the second step by A / B tests. In the first step, the entire target group of your online shop is considered (potential customers or your market capacity). On the second level, visitors to your online shop are shown. They became aware of your product range and showed interest in it. For more details, an intermediate layer can be analyzed - impressions are compared with the number of visitors and show the efficiency of the advertisement (CTR - Click Through Rate) and the search engine optimization.
After potential customers have seen a few pages of the online shop, a large part of the visitors will leave the online shop. Another part shows another initiative and makes contact. This group is called Leads and consists of all potential buyers, e.g. Call your hotline, sign up for newsletters, follow the Facebook page. The normal way in Conversion Funnel is but this: search engines, category page, product page, cart. This is followed by the checkout. It needs special attention and needs to be split into each area to find and optimize ineffective pages in the checkout (e.g., shopping cart, address, payment methods & shipping, order summary).
The bottleneck part of Conversion Funnel is the successful order, which only comes with part of the original lead. This is the ultimate goal of the entire e-commerce process and will be achieved in a moment when the goods have been paid or a binding order has been made. Even after the successful order, there is still a level of the sale funnel, which is called regular customers. The more customers are satisfied with the first order, the greater the chance that they will always shop in your online shop. Improving customer care after the sale, therefore, contributes significantly to increasing the overall performance of an online store.
Logically, the conversion funnel down gets narrower. Proportions between all levels next to each other are the key figures of your success and show where the bottlenecks of your business lie. My recommendation for every online retailer is to create Conversion Funnel with the exact numbers not only for the entire store, but also for individual sales channels. This allows you to compare the efficiency of the sales channels and to find out and increase the ROI (return on investment) of your advertising campaigns.
Google Analytics: tools for optimizing the conversion funnel.
OPTIMIZATION OF THE CONVERSION FUNNEL
Example: If the page "Payment Method" has a very high exit rate in the checkout, then this is an indication that something is wrong here. This may involve the payment methods available, the additional cost of payment methods or the poor usability of the site. Here then helps a classic A/B test.
With the help of the following checklist, you can find out where there is room for improvement in your online shop.
1. MAKE MORE VISITORS TO ONLINE SHOP / CONVERT TARGET GROUP IN VISITORS
Search Engine Optimization: How long is the keyword list? What is the competition for individual keywords? Are title tag, URL and meta description optimized for users and search engines? How good are the ranking for each keyword? Are product and category pages relevant to users and search engines?
Online Advertising: How many banner ads are published in thematic blogs and magazines? Did Google Adwords or other targeted advertising campaigns start?
Offline Advertising: Is your company present at trade fairs, exhibitions and other relevant events? Does the community talk about your product? Will offline advertising campaigns, e.g. Flashmobs, flyers organized?
Online marketplaces: Are the products found on Ebay, Amazon and Co.? Are there special marketplaces only for your target group?
Price search engines: Find your articles on Google Shopping, preisiger.de, idealo, price search, etc. (Germany)? How attractive is your offer compared to the competition?
Social Media & Blogs: What social media channels do you communicate with customers? How big is your audience? How regularly are news posted? Does the news add value to your customers or is it just advertising?
2. GENERATE MORE INQUIRIES ONLINE SHOP / From Visitor to a Lead
Professional design: Does your online shop make a professional impression? Does the design affect the customer emotionally? Is the site pleasant to use?
Good navigation: Are the product categories understandable? Are all categories & product pages easily accessible via the navigation? Does the product search work smoothly?
Sufficient product information: Are all product specifications listed in a comprehensive table? Do you offer enough product pictures? Are the product images of high quality?
Loading time: What is the average speed of the online shop? How fast is the comparison with the external partners (eg payment providers)?
Attractive product range: Do you highlight in the online shop, bestsellers and products of the month? Do you offer discounts to your customers? Are there special promotions that run for a limited time?
Clear call-to-action: Do customers with low Internet affinity understand how to put a product in your shopping cart? Can you find all the necessary contact information in the shop?
Trust elements: How many product reviews are left in the online shop? Are you positive? Do you look realistic? Is there a seal of approval, test judgments in the online shop? Are well-maintained About us, Conditions and Imprint pages?
3. CONVERT MORE ORDERS / POTENTIAL CUSTOMERS IN SELLERS
Customer Support: How long does a customer need to wait for personal contact? Are potential customers satisfied with the quality of the customer center? Do employees of the call center follow the sales guidelines?
Attractive payment and delivery conditions: How many payment options are offered? How fast will the goods be delivered? Can the postage costs be determined exactly?
Newsletter: Are your potential customers informed about daily offers, sales at the end of the season? Do potential customers have a chance to get to know your product better?
FAQ: Are there too many questions about your product / service over the phone? Does the customer understand the added value of the product?
Remarketing: Are you trying to track lost leads? Do you use Remarketing advertising campaign on Google Adwords or Facebook?
4. MAKE MORE RECURRING ORDERS / Customers becomes a regular customer
Advantages for recurring orders: Do you offer discounts for your regular customers? How are they informed?
Improve service: Have customers been asked for their feedback? What is being done to realize improvement requests?
Pass it on: Are your customers satisfied with the first order? Would customers recommend your online shop? Is a bonus offered for a referral?
Social Media Activities: Regular information about news in the online shop.