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Conversion funnel - how to build it in your industry?

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Conversion Funnel: This term is a hit in industry seminars and webinars. When you are not yet sure what exactly is going on, it may seem like a fanciful, insignificant concept. Meanwhile, the conversion funnel governs the behavior of your customers - if you plan it consciously.

In the US, the conversion funnel is only used in 32 percent companies. It is estimated that in Poland this indicator may be even lower. On the other hand, in some industries the indicator reaches 100% ... 

96 percent Web site visitors are not ready to buy anything. It is for them that it is worth having a sales funnel that will gently guide them through the various stages of brand awareness. Starting with a casual look at blog posts, by subscribing to mailing, after an irresistible desire to make a purchase. 

The effectiveness of the conversion funnel also depends on the medium you use. For example, for organic traffic on the website it is on average 16%, with Google Ads - 3.75 percent, and in social media - 0.71 percent. Interestingly, it also matters whether your customers use the phone or the laptop. On mobile devices, only 1.53 percent on average. people decide to buy. Meanwhile, the sales funnel works on an average of 4.14 percent. people who use the computer. 

Conversion funnel - what is it?

The conversion funnel is the path your customer takes from the first interaction with the brand (search engine advertising, email in the inbox) to making the purchase decision. She is pictorially depicted as a kind of inverted pyramid, specifically a funnel, hence the name. At the top are all the random people who got the message or saw the banner. Below are those who got interested. Even lower are those who clicked (signed up for the webinar, went to the store's website, downloaded the e-book, etc.). At the very bottom, there is a group of people who bought the goods, paid for the service or performed other activities expected by you, as narrow as the neck of a funnel. 

Effective Conversion Funnel?

We know how to build it. Also for your company.

How to build a conversion funnel? 

Plan what communication channels you will use, given cost and effectiveness. For example the effectiveness of email marketing it is an effect of scale, because e-mails can be sent to millions of people (and you pay nothing for each subsequent one). Meanwhile advertising in social-media is often paid per view. In the PPV model, where you pay for each impression, you need a higher conversion. 

Online conversion funnel it relies heavily on automated solutions. Only then does it pay off to send several thousand e-mails. Before you start, make sure you have automated tools or mailing sequences that allow you to react quickly, for example, if many people would like to purchase your product at the same time or even subscribe to a webinar or mailing list.

When to use the conversion funnel? 

Today, conversion funnels are mainly talked about in the context of email marketing. Before that, however, they also existed and were used in telephone or direct sales. But let's focus on internet sales, because it allows you to reach thousands or millions of potential buyers today at low cost and in a simple way. The sales funnel is most often used to build a mailing list, when organizing a webinar, and for sales in general. Both other elements, i.e. the webinar and the newsletter, can also be part of the sales conversion funnel. 

Conversion funnel - how to measure? 

On the web you will find a list of average conversions for each of the industries. For example in e-commerce it is 1.84 percent., now in the financial industry - approx. 5 percent. Marketing guru Amy Porterfield's advice is to build a conversion funnel based on your industry average, and only then set your own, more ambitious goals after that. How to measure the conversion? 

The email marketing conversion funnel consists of: E-mail "openability", number of clicks, alone conversion, and number of canceled subscriptions. Check the averages for your industry and set goals for each of these areas.

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Itself measuring conversions in ANDon the internet it's fairly simple where you have access to stats. If you sell only through the website, you just need to compare the number of visitors with the number of purchases made - this is your conversion. If you run an e-mail marketing campaign, set the number of messages sent with the number of clicks on the link or replies to the e-mail.  

Dedicated tools make it easy to measure results. A link or code available only to e-mail recipients means that you will have no doubts where the buyers are coming from. The conversion funnel is likewise easy to evaluate in cold calling or direct sales (number of finalized transactions / number of calls = conversion level). It won't be that simple anymore with a billboard or scattered forms of marketing whose reach is difficult to define. 

1 percent conversion - is it a lot or a little? 

The conversion funnel is an effective tool and is therefore standardized sales support on-line. First-time newcomers are sometimes disappointed with the conversion rate, which is often a few percent. If on average only 2-3 people make a purchase for every 100 people, is it a success? This is a wrong question.  

Conversion funnel effective in 1-2 percent. sometimes that's enough to be successful. For example: if you send 1,000 automated emails a day and the conversion is 1-2%, that means about 10-20 new customers a day. 3.75% average conversion that's a lot if millions see your Google ad every day. Whether a conversion of a few percent is a lot or a little depends also on the industry.

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If, for example, you sell exclusive real estate, it pays off to invest in mailing to 1,000 people, if as a result one of them will spend millions on an apartment. However, if you sell pens, such mailing would cost you more than the expected revenues when converting 1%. 

Remember that you can influence the conversion funnelby perfecting its individual elements. Well-written, attractive content will make your e-mails open to a dozen, not a few percent of recipients, and from among them, a dozen, not a few percent of people will click on the link or offer. All this means you can end up with a conversion much higher than the industry average. In addition, automating the process removes the costs of sending an individual e-mail from you - it does not matter whether you send 100 or 1000 e-mails with the offer. 

We all know companies whose marketing and offer are so good that we do not need to be persuaded to subscribe to the mailing list - we apply ourselves and then wait for e-mails with offers. Efficient marketing strategy it will make customers wait for emails from your company, which significantly increases conversion. 

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