What Is An eCommerce Funnel
The eCommerce funnel is a tool that eCommerce businesses utilize to help optimise the flexibility and adaptability of their online properties. The process involves supervising and analysing the road to conversion through a set of core phases to check whether there are any problems on the way to carrying out a transaction successfully. A business’s properties could be a desktop website, mobile website or anything that requires multiple stages in the process leading to a transaction.
The eCommerce funnel controls all phases on the road to a successful transaction, or a goal that can be achieved by customers like subscribing to a blog, although the later is not a common focus. Usually a transaction is considered as complete when a customer has gone through checkout, entered their credit information and paid for their products. The phases provided here will give a basic understanding of the process a customer must go through to reach a transaction in a typical websites :
- User visited the website homepage
- User navigated through a list of products or category and sub-category pages
- User viewed the product page
- User added one or more products to their shopping cart
- User began the checkout process and provided their information
- User carried out and completed a transaction
The information gathered throughout this road will help your business find out what’s working and what’s not, and common missteps that result in an underperforming product page like :
- The images on your pages don’t refer to the actual quality of the products – which you can improve by putting high definition images that are related.
- The descriptions on your product pages are too complicated – easily fixed by simplifying content.
- Users don’t add items to the shopping cart because your website online presence isn’t high enough – which is something reviews from customers and professionals can help with.
So how exactly does a business determine which phase is working and which isn’t performing as intended ? That falls to benchmarking – those below numbers are the qualified benchmarks from one phase to the next for all eCommerce transactions.
- Visited Category – 100%
- Viewed Product – 80%
- Selected Product to add to Shopping Cart – 20%
- Finished Checkout – 70%
If you have worked out some optimal solutions for obvious problems in each of those phases, don’t stop there yet. Keep finding new methods to improve your website’s performance by doing some analysis along with comparison, and especially focus on the percentage of conversion based on customers that have passed through the previous phases of the funnel. You may also want to keep an eye for problems that arise in the bottom end of the funnel, because it can affect directly to your business revenue and conversion rates.
But just simply monitoring and optimising your eCommerce funnel isn’t enough. The next step in this process would be segmentation, and it should be implemented in your conversion funnels in order for it to cover more platforms. Popular segmentations that businesses often apply are :
- Mobile devices only
- Foreign customers
- Visitors from a specific channel only
There are some techniques you can use when you’re determining the performance of each segments :
- Make some comparison the average performance of all segments to the performance of a specific segment. This way you can pick out any problems and complications that are unique to that segment.
- Take advantage of a grid format to discover any abnormalities in a specific segment when comparing to other content-related segments. Also focus on optimising the segment that has high amounts of traffic, or the one that produce the most profit.