Understanding the Conversion Funnel: Who Created It and How to Optimize It

The conversion funnel is an essential part of any e-commerce business model. Learn who created it and how to optimize it for maximum impact.

Understanding the Conversion Funnel: Who Created It and How to Optimize It

The shopping funnel, or shopping funnel, is a consumer-centered marketing model that illustrates the customer's theoretical journey towards purchasing a good or service. This initial model has been modified by marketing consultants and academics to serve the modern customer and is now referred to in marketing as a buying funnel or purchasing funnel. Nowadays, there are many different models of purchasing between companies and consumers, but it is generally accepted that the modern business-to-business purchasing funnel has more stages, considers the intention to repurchase and takes into account new technologies and changes in consumer purchasing behavior. Similar to a shopping funnel, the conversion funnel is a technical term used in e-commerce operations to describe the trajectory that a consumer follows through an advertising or Internet search system, when navigating an e-commerce website and eventually becoming a sale.

The modern conversion funnel can have many points of entry, meaning that people can enter at any stage of their life cycle, they can leave and re-enter. As a result, an effective online marketing strategy requires an omni-channel approach that combines several sources of traffic, campaigns and loyalty channels, and makes them work as one to complete the purchase and even generate loyal customers or brand advocates. A conversion funnel is a process that leads potential customers to buy your products or services. They are the cornerstone of all e-commerce business models and guide potential customers from the moment they know your brand to the moment they make a purchase and beyond.

The sales funnel has been a cornerstone of marketing strategy for more than a century. It was invented by E. St. Elmo Lewis in 1898 and is widely considered to be the first formal theory of marketing.

It evolved throughout the 20th century and became better known as the “hierarchy of effect”, the basis of Dagmar's advertising planning models (defining advertising objectives for measured advertising results) and as an important structuring tool for large consulting firms. It's rare to find a major McKinsey compromise that doesn't contain, much less, a purchasing funnel of one kind or another. When you optimize your conversion funnel, you maximize the impact of your online marketing strategy and increase sales. You can sort these reports based on many different conversion metrics, but some of the most useful for determining sources of qualified traffic are the custom parameters of your campaign.

As you begin to develop your conversion funnel, think about how visitors go from their first interaction with your site to becoming customers. In addition, mentioning that the discount is only available “for the next 48 hours” creates a sense of urgency, which is almost never a bad thing for boosting sales. This is because email is an extremely effective channel for keeping potential customers in your funnel and bringing them closer to conversion. In addition, in most cases, these types of conversions require an email address that allows you to stay in touch with that user even after they leave your site.

Creating ongoing campaigns that can run in the background while you and your employees focus on other tasks is useful for maximizing profits. If you're new to the world of conversion funnels, think about the shape of a funnel: it's wider at the top and narrower at the bottom. Then, five days later, you can send a second email encouraging them to read a blog post or informational article that addresses the questions your audience usually has early in the conversion process.

Cassandra Paule
Cassandra Paule

Certified social media guru. Hardcore food scholar. Freelance baconaholic. Infuriatingly humble bacon specialist. Subtly charming web aficionado. Certified twitteraholic.

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