It’s pretty rare for a user to land on a website and be ready to buy immediately. More often than not, there are a series of steps taken before a user is ready to take action, and in marketing this is known as the conversion funnel.
Understanding what the conversion funnel is, how it works, and what you can do to create a well-structured funnel that drives customers towards a decision is crucial for success. So, if you’re not clued up on conversion funnels, then here is everything you need to know...
A conversion funnel is a marketing term used to describe how a user goes from discovering a business to completing a desired action, which could be anything from making a purchase to signing up to a newsletter.
There are four main stages of the conversion funnel:
It’s known as a funnel because the number of people decreases at each stage. Thousands of people may become aware of your brand, but a smaller percentage will actually consider it, and an even smaller group will commit to a decision.
Here's a breakdown of each stage:
Also known as TOFU (top of the funnel), this is where people first discover your business, brand, or product. This isn’t the time to sell - people are looking to gather information, so you should be using this stage to educate your audience and establish trust.
Focus on providing useful information, answering common questions in the form of blogs, infographics, explainer videos, and social media posts. Don’t put pressure on a user to take any action here, just introduce the brand and demonstrate your expertise.
Also known as MOFU (middle of the funnel), the consideration stage is where some momentum has built. The user recognises what their problem is and is beginning to consider possible solutions by comparing products/services, reading reviews, and downloading guides.
You need to use this time to show consumers that you understand their problem and have something to offer. Focus on demonstrating results that build the confidence people need to move onto the next stage. This can be done using assets like long-form content and case studies.
Also known as BOFU (bottom of the funnel), customers at this stage are ready to choose a solution. They know exactly what they need and are deciding which brand or product to commit to.
The most important thing at this stage is to reduce friction. It’s easy to lose a customer at this point if you have unclear or missing information or a complicated checkout process. Make it as quick and as easy as possible for a customer to complete their action.
The funnel doesn’t end when a customer converts. Once they’ve made their purchase it’s all about building loyalty and encouraging them to buy again. This is where the purchasing and post-sales experience is crucial. A poor one can deter people from returning, while a positive one can prompt repeat purchases.
The overall purchasing experience, from beginning to end, needs to be seamless. Any hiccups here, especially if they’re not handled appropriately, can lose you business. You also need to take steps to entice people back. This is often done using a series of post-purchase emails designed to coax customers into repurchasing. You can also use this stage to encourage reviews or referrals.
Communication styles change at each stage, as the level of interest in each section of the funnel is different. The funnel helps inform the best type of campaign and messaging or ad copy to use.
For example, demand generation campaigns help users identify common problems. At this point users require dependable information to get their questions answered. Once they have this, they need a supplier, and now costs, reviews, and shipping details become important. These are all elements to consider when promoting your business.
Without thoughtful planning, you might push people to take action too early and drive them away, or fail to build trust at a crucial stage in the decision making process.
Knowing where you lose customers is incredibly beneficial. For instance, you might successfully attract visitors and keep them interested, but lose them at the last hurdle. This often indicates a poor checkout experience, which when improved, can significantly boost your conversion rates.
You can use the Purchase Journey and Checkout Journey reports in GA4 to identify where these are. Just keep in mind that these are closed funnels, so you may need to create new reports to populate them with your website data.
Ultimately, a more structured and informed approach will help you produce more effective marketing material and focus your efforts in the right places, resulting in more conversions.
By recognising the different stages of awareness, consideration, and decision, you can increase brand awareness, build trust, and convert more visitors into customers. If you’re looking for expert guidance building a logical and effective conversion funnel, then don’t hesitate to get in touch with us today!
