Conversion Funnel
The conversion funnel, also known as the sales funnel, describes the individual stages a potential customer goes through – from the first contact with a brand to the final desired action, such as a purchase or a sign-up. The term “funnel” illustrates that many users enter the upper stage, but only a portion of them convert by the end.
A typical conversion funnel consists of several stages: awareness, interest, decision, and action. In the first phase, the user discovers a product or service, usually through advertising, social media, or search engines. This is followed by the phase in which the user explores the offer more closely and may consult comparison sites or reviews. In the decision phase, they weigh specific options – until finally performing an action, such as completing a purchase or filling out a form.
Understanding the conversion funnel is essential for successful online marketing. By specifically optimizing each individual phase – for example, through improved landing pages, clear calls to action, or user-friendly checkout processes – companies can reduce drop-off rates and increase the conversion rate.
A well-analyzed and optimized funnel not only helps attract more customers but also improves understanding of user behavior and enables more efficient use of marketing activities. This makes the conversion funnel a crucial tool for increasing online business success.