The Complete Guide to Ecommerce Conversion Funnel

Ecommerce Conversion Funnel

Are you struggling to convert your website visitors into customers?

Are you seeing a lot of traffic on your online store but not able to generate revenue? Well, you need an eCommerce conversion funnel.

In this guide, I will walk you through every aspect of the eCommerce conversion funnel and how you can create an effective conversion funnel for your eCommerce business.

Ready? Let’s get started.

What is an eCommerce conversion funnel?

A conversion funnel is a visual representation of how your target audience follows a path from getting to know your brand to become a paid customer.

In short, it is a visual illustration of converting an unknown stranger into a customer.

Every business out there has a conversion funnel, whether defined or not, but it exists. Every business person or entrepreneur knows that you can’t just open a store or website and expect people to come and buy from you.

You have to create a buzz among your target audience to let them know about your products and services. And reach out to them again in one or another form to remind them or offer better deals.

And that’s what a conversion funnel is all about. It just helps you track and understand your audience better.

Why do you need an eCommerce conversion funnel?

You might be thinking about why put extra effort into creating a conversion funnel when all you can do is focus on driving traffic to your website using paid ads or SEO and generating more sales. 

But here’s an eye-opening fact for you – more than 95% of first-time visitors never return if they leave your site without converting. 

So, you need a conversion funnel to visualize how a prospect interacts with your brand and where they drop off without converting. This way, you will be able to retarget them again via different marketing channels or optimize your website content to ensure low drop-offs and high conversion rates. 

And, remember this – you won’t be able to do this without creating an effective eCommerce conversion funnel in the first place. 

Having said that, now let’s dive into creating a funnel for your business.

Key stages of eCommerce conversion funnel

To create a conversion funnel, you need to first understand the 3 primary levels of a customer’s buying journey, which are as follows –

  1. Top of the Funnel – At this stage, people are not necessarily looking to buy your product instantly. They might be looking for solutions to their problem or researching for future purchases. 
  2. Middle of the Funnel – At this stage, people interested in buying identified your brand and are considering and comparing it with other brands available.
  3. Bottom of the Funnel – This is the final stage consisting of people who decided to buy from your brand. Most of them will buy eventually, while for others, you may need to give a little nudge to make the purchase. 

Now, for eCommerce businesses, you can break down these levels into four key stages of the customer buying journey, which are as follows – 

  1. Awareness
  2. Interest
  3. Desire
  4. Action

Here’s how these stages can be represented in the form of the funnel –

eCommerce Conversion Funnel

Every business needs a custom conversion funnel, but the stages remain the same with actionable strategies depending on their business model, products, and how customers complete their purchases.

Having said that, let me explain each stage of the eCommerce conversion funnel.

Stage 1: Awareness

At this stage, your goal is to reach out to your target consumers available on different marketing channels and make them familiar with your brand and what you offer. 

This is the first time they will find out about your brand. So you want to create a lasting impression on them by providing informative content about your products and how it solves their problems.

Think of this like you are meeting someone very important for the first time. So you don’t want to start with direct selling, instead, you want to know them and help them with their problems. 

Therefore, at this stage, you should focus on creating informational content or advertisements that people can relate to their problems. 

For instance, take a look at this guide from Loreal Paris –

Blog post for conversion funnel

The brand has created this guide to help anyone who wants to get rid of the under-eye bags. Here, they are not selling their products directly, instead, they present them as a solution that readers can try. 

When someone visits this article via google search, social media, or ads, they get into your marketing funnel, and you know that the readers are looking for that specific problem. So, leverage that information and get them moving to the next stage of the conversion funnel. 

Stage 2: Interest

Once you have people who know your brand, you need to keep engaging with them with more informative content related to their past interactions so that they remain interested in your products. 

So, at this stage, you will need to leverage the marketing platforms like Facebook, Instagram, Pinterest, and other that enables you to retarget such visitors on the platform and drive them back to your site.  

For instance, using the last example, the brand can run a targeted ad campaign to the visitors of that article with a video interview with an expert on what causes under-eye bags and how to avoid it.

Your objective at this stage should be to keep providing valuable content to such potential customers so that whenever they are ready to make a purchase decision. 

Stage 3: Consideration

At this stage, you have filtered out the people who were just randomly looking for the information and most likely not interested in purchasing your product ever. 

Now, you have the audience who interacted with several of your content and showed that they want a reliable solution for their problems. But, remember that you are not the only brand they have interacted with during this journey.

So, at this stage, you have to provide content that proves that you care about their problems and you have the perfect product they are looking for. 

To create that impression, you can create articles or videos comparing your products with different brands. Or better, you can ask influencers to make such content and bring it to your audience’s attention. 

Another way is creating an interactive quiz that recommends the best product based on a set of questions. For example, a cosmetic brand can create a quiz that tells people the best products based on their skin type, color, style preference, and more (like this one by IPSY)

Interactive quiz for eCommerce conversion funnel

This way, people will know that the recommended products are personalized based on their requirements and are most likely to take action, as discussed in the next section.

If this idea sounds great, you can use the products like Outgrow to create interactive quizzes and a product recommendation system for your eCommerce site.

Stage 4: Purchase

This is the final stage where you should have your most ideal consumers ready to buy products from you. 

The people reaching this stage have chosen your brand over others to buy the products. You just need to give a little nudge to make them add products to their shopping cart and complete the checkout process.

At this stage, you should have conversion-friendly product pages and a smooth checkout process, ensuring that people complete the process easily. 

Also, prepare a sequence of abandoned cart emails and SMS alerts to remind shoppers about their cart and push them to complete the purchase. You can use email marketing software like Omnisend to automate your email and SMS marketing campaigns. You can read more about it in our detailed review.

Wrapping Up

An ecommerce conversion funnel is the must-have for any brand that strives to make data-backed decisions and is always ready to do experiments to find out what works best to convert consumers at each stage of the funnel. 

The conversion funnel helps you analyze your marketing performance at each stage of the buying journey and provides you with data to optimize your content and marketing strategies for better performance. 

That’s why I recommend collecting your consumer data and creating a well-defined and effective conversion funnel for your eCommerce business. But remember that you can’t just create a funnel and leave it as it is forever – you must analyze it regularly and optimize it for better results.

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