4 Easy Steps To Setup Conversion Funnels

A marketing funnel is something which business owners and advertisers still miss out on while running campaigns. Most businesses are using Google Analytics ( and the goals in it) today. However, when it comes to understanding and optimising user journeys, most marketers still have a long way to go.

A clear understanding of your conversion funnel can help you improve your website/app’s UX , create better customer journeys and eventually lead to more revenue.

In this post, we’d be talking about 4 easy steps to nail conversion rate optimisation using funnels

  • Understanding your customer’s buying patterns and journey touchpoints.
  • Defining the goals and events that make a difference to your business.
  • Setting up and understanding funnels in google analytics.
  • Taking data driven decisions to improve your marketing.

#1 Understanding Your Customer’s Journey

customer-journey

Image Source: Shopify.com

Any business can classify their user’s journey in 3 simple steps

  • Top of the funnel: How do people get interested in buying your product/service?
  • Middle of the funnel: Once someone is interested, how are they moving further towards the final buying stage?
  • Bottom of the funnel: What triggered them to pay up on the last step?

Depending on the nature of your business, these journeys can be short, medium or long.

However, the entire customer experience map can be summed in these 3 steps.

If you can address these points firmly, you can do great with conversion optimisation !

Let us consider some examples

Buyer Journey For An eCommerce Business

Top of the funnel : As mentioned, the “top of the funnel” audience would be people who are interested in your product. In this case, the best example of such leads would be people who have shown an interest in the product by adding it to their cart/wishlist, reading reviews or visiting the product page multiple times.

 

top-of-the-funnel-ecommerce


Middle of the funnel : 
This is the part between the cart and payment stage. This could be considered as the stage when the user is adding his address details, his payment preferences, browsing more products etc.

 

middle-of-the-funnel-ecommerce

 

Bottom of the funnel : This is the part which takes into account $$$. When the user is entering his/her payment details, it means that they’ve reached the bottom of the funnel.

 

bottom-of-the-funnel-ecommerce

 

Buyer Journey For A Consulting Business

Top of the funnel : When a potential client is visiting your website several times, spending considerable time on your services/case studies page, asking for a quote etc. , all these stages can be accounted as top of the funnel.

 

b2b-top-of-the-funnel

 

Middle of the funnel : When your proposal/quote is being discussed actively with the lead, that particular stage qualifies for this category.

Bottom of the funnel : When you’ve decided on a working model, process and milestones, that stage is called reaching the bottom of the funnel.

 

To know more on how to design a buyer persona framework for your business, download our E-book today!

buyer-persona

 

 

# 2 Defining The Goals And Events That Matter  

 

Google Analytics allows you to setup multiple goals and events to understand how your users are interacting with your business.

Let’s consider the case of an eCommerce business here.

Here are the goals/events that need to be tracked:

  • Top of the funnel : Clicked “Add to Cart”
  • Middle of the funnel : Entered shipping address.
  • Bottom of the funnel : Completed Payment.

Let’s now use analytics to set these goals up:

Goal 1 : Adding To Cart

Most websites will not change the URL once someone adds a product to the cart from the product page. It is best to define an event in Google Analytics when someone clicks on the cart button.

Here is a simple event tracking code that you can put up on the “Add To Cart” button

onClick=”ga(‘send’, ‘event’, { eventCategory: ‘Site Events’, eventAction: ‘Click’, eventLabel: ‘Cart Adds’});”

Once you define this, you would be able to see the number of cart additions from Google Analytics

add-to-cart-event

Image Source : WooCommerce

You can even turn this event into a goal in Google Analytics. Here is how to do it:

 

event-to-goal

event-goals

 

Goal 2: Adding shipping address

Most websites will have the payment page show up once someone has filled in their shipping address. That would mean someone reaching the payment page has successfully submitted their address.

Let’s use this opportunity to define a goal. Here is how to do it:

 

 

shipping-goal-1

 

shipping-details-2

 

 

Goal 3 : Payment complete

This is similar like the above page. If you have a “thank-you” page after a payment is made, you could use that as a signal for successful payment. If someone reached the thank-you page, it would mean they have reached the bottom of the funnel. Here is how you would setup a goal for such an audience:

 

payment-goal

 

#3 Setting Up A Funnel In Google Analytics

 

Now that you know how your customers interact with your business, it’s time to setup your funnel.

In the above example, we can summarise our funnel in this fashion : Cart – Shipping Details- Payment

Let’s build this in Google Analytics.

While creating the last goal ( payment done), you can add previous steps to it. This will Google Analytics to build a funnel for you showing the steps that lead to the conversion.

Here is how the setup needs to be done

 

payment-funnel

 

And here is how your funnel would look like

 

funnel-visualisation

Image Courtesy: BlueStout.com

 

Congratulations! You’ve successfully built a funnel which takes into account critical steps before a customer buys !

 

If you’re looking for more analytics tools apart from Google analytics, get our Ebook today!

free-growth-hacking-tools

 

 

 

# 4 Taking Data Driven Decisions To Improve Your Marketing

 

The entire point of a sales funnel is to empower you with data about conversion metrics, customer drop off and insights on how to improve revenue.

With our eCommerce example in focus, let’s brainstorm about the funnel points

  • Where does the customer drop off?
  • What can be the possible reasons for abandonment?
  • What can be made better to improve conversion rates?

Where does the customer drop off ?

Most eCommerce businesses face a high cart abandonment rate. If that’s the case with you as well, your focus should be around reducing the % of abandoned users.

What can be the possible reasons?

Multiple reasons could account for this. Some of the most common could be:

  • Poor experience on mobile/tablet.
  • Hidden shipping/extra costs.
  • Customer needs some more time before paying.
  • The customer found a better deal elsewhere.

How to improve conversion rates?

  • UX will always be a major contributor. If your landing pages and CTA’s aren’t smooth enough, your business would never reach it’s true potential.
  • Some products can’t be purchased in one go. Especially if the product price is high( like furniture etc), customers will evaluate for a while before making a decision. It’s necessary to keep reminding them by using some targeted emails and remarketing advertising.
  • Be clear on delivery and shipping. The more details you give to the user before entering the funnel, the better your conversion rates would be.

In a nutshell, conversion tracking and optimisation is an ongoing process. You need to understand what you are tracking, how to access data and act on that data to make important marketing decisions.

 

Marketing-Masala-Case-Studies

 

About Shivankit Arora

A marketing enthusiast by choice and an engineer on paper,Shivankit loves strategising marketing plans and implementing the same. Out of work, he can be found making his next travel plan. You can reach him at shivankit@marketingmasala.com