A sales funnel for eCommerce is a route the customer takes from awareness to purchase and loyalty. It is wholly mapped and data-driven, making it an essential tool for anyone looking to sell online.
In simple words, it’s a live visual experience of the journey which the customer undertakes online. The funnel will be longer or shorter depending on the type of product. If it is a relatively inexpensive product like a cosmetic, etc., the sale may happen faster, as the customer doesn’t have many doubts. In the case of more expensive products like luxury goods, expect a greater deal of back and forth before the sale happens.
The three stages of the eCommerce funnel, which are upper, middle, and lower, correspond with the marketing funnel stages: awareness, consideration, and decision. In contrast, the fourth retention stage comes into play only for those converted.
So let’s see how the funnel pans out in eCommerce.
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Upper funnel
Here the tools that make the consumer aware of the brand come into play. Whether through SEO blogs, Google ads, or social media platforms, all create brand awareness.
The latest trend of influencers promoting brands using video, particularly on Instagram, is impossible to ignore for marketers of all sizes.
Remember, first impressions are often lasting, so have a clear and concise marketing message with a high quality of execution.
You can assume that the customer is looking at competitors at this stage; hence, repeated communications are required for conversion to the next funnel stage.
It is most likely that the customer is looking at technical features and specifications at this stage, so the product listing must have explicit content that resolves the queries.
Middle funnel
The middle funnel in e-commerce corresponds to the consideration stage of the marketing funnel.
Here the brand gets a chance to engage with an interested audience. Email marketing, social media posts and push notifications are all part of the engagement strategy.
This is where you have to get them to subscribe to your email newsletter and follow your updates on social media, which should not be a challenging task if your product or service is alleviating their pain point.
In general, all the content related to your brand should ensure your customer is moving towards a sale. There should be several genuine reviews and social media comments that favor the brand.
If there are real issues related to the product, they should be resolved earliest. Reputation management should ensure that even negative comments are replied to with honesty, timeliness and a solution-based approach.
If people feel the brand is successful, they are more likely to associate with it. So use the full range of marketing and advertising tools to ensure early sales.
Try to include good quality images and videos as they increase sales. Write about the benefits they will derive from the features and highlight them.
Lower funnel
Here it is time to close the sale. The customer has almost chosen you over competitive brands. All you have to do is remove roadblocks toward a smooth purchase.
However, only 3% of visitors to the site go on to purchase, so one has to ensure a trouble-free shopping experience. Take a look at the reasons and stats related to cart abandonment. Keep the checkout experience short and simple.
Most cart abandonment happens due to payment-related issues, so ensure a great user experience regarding payments. Moreover, try to include information about extra charges beforehand so that the customers do not feel like they are being taken for a ride.
Send emails to the customers who have abandoned carts and give them discounts as incentives to purchase within a time frame.
Competitive shipping prices, after-sales servicing, and discounts for timely checkouts are all incentives to close the sale.
Retention stage
While we have considered three stages as a part of the eCommerce funnel, we cannot ignore the retention stage, which comes after the decision stage.
It’s always cheaper to retain an old customer than acquire a new one. Here are a few ways to retain them.
- Points-based loyalty programs incentivize existing customers to keep purchasing.
- Special offers for subscribers incentivize users to renew their subscriptions on time.
- Value-driven client accounts that stand a chance to win prizes like vacations, shopping coupons, etc., are another way to retain clients.
- Email management systems ensure that your clients get the latest updates about everything happening with your business.
How to create a great sales funnel strategy?
In order to create an excellent funnel, you should know where your customers come from. Map your customer data and identify the significant sources of traffic.
Whether it be Google ads, Facebook ads, blogs, Instagram or Twitter, put your marketing dollars on the platforms that get you enough traffic.
Use various offers and test them to see which ones get the best response. Improve your website’s stickiness with great visuals, information and backlinks.
Once the customers are on the site, a compelling all-out pitch must allure them to convert. Now you can watch real-time recordings of users navigating your website. So you can see the features that resonate with them and those that drive them away.
A/B testing must be an ongoing process to ensure a great user experience. Know which elements and ideas are converting users so that you can develop them further.
Key sales funnel metrics to monitor
Traffic
The number of visitors to your site must align with your business vision, or else your business will not meet its targets. Companies invest in paid and free tools to increase traffic on their websites, such as Google ads, Facebook ads, blogs, etc.
Conversion rates
Even if you are getting a lot of visitors, but they are not converting to customers, then it becomes a problem. You have to ensure the right kind of audience is visiting your site.
Facebook has a lookalike audience feature, wherein users whose demographic profile and interests match those of your existing customers are targeted. Such kind of targeting is essential to boost conversion rates.
Bounce rate
The bounce rate is the number of visitors who leave the site after visiting just one page. Many factors can contribute to the bounce rate. Your site may be hard to navigate, the design may be tacky, and the user experience complex.
Keep your site easy to use and navigate so that you don’t experience high bounce rates.
Sales
It all comes down to sales. The business will survive and grow only with sales. There should be steady upward growth. Sometimes dips due to seasonal factors may occur, but ultimately growth should be constant.
Cart abandonment
A higher than normal rate of cart abandonment is a cause of concern. It shows problems with either ease of payments, payment options, hidden charges or shipping costs. These must be resolved at the earliest.
Add to cart rate
This is simply the percentage of site visitors who placed at least one item into the cart during a single session indicating whether your products are in demand, your marketing efforts are working, and your site is functioning correctly.
Customer lifetime value (LTV)
LTV is the amount of business a customer will generate across the company’s lifespan. Using LTV, companies can predict the customer segments that will cause the highest revenue and focus on servicing them.
Average order value
This is the average amount your customers spend every time they buy from your site. This can be achieved either by adding more items or more high-value items. Every company should aspire to attract clients with a high order value.
Retention rate
This is the percentage of clients who place repeat orders. It indicates the degree of loyalty customers feel towards a brand. Loyalty programs, discounts, upselling, cross-selling, product recommendations and email updates are excellent ways to improve retention rates.
How to create the best sales funnel for Ecommerce?
Understand the buyer’s journey
Know where your visitors are coming from and where they go after visiting your site. Using color mapping, understand the parts of the website they spend time on and those that drive them away.
Ensure ease of navigation
Ensure product categories are segregated to ensure they reach their area of interest. Have auto recommendations so that they can see best-selling products quickly.
Trigger conversions with content
Have the right content ambiance with on-site reviews, Google reviews, and social media comments so that your brand is associated with success.
Create your sales funnel with finesse, and read more such blogs with insightful marketing knowledge and stats at CuriousOwl.