The Journey from Visitors to Customers
Funnels are foundational-level building blocks of all digital businesses. Funnels are the path taken by visitors to a website, to become a customer. Visitors flow through a website in large numbers, but all of that traffic funnels down to just a trickle of signups, sales, or conversion. Marketing Funnel monitoring and analysis can help spot where users are leaving your website so that you can take necessary action to increase conversions.
Why you should monitor Marketing Funnels?
As a business, you would want your prospects to visit your website, learn about what you do, check out the pricing details, and take certain actions. Actions can be completing a purchase, opting for consultation, filling out a form with their details, or signing up for newsletters.
A funnel shows you how the visitors move through the website. Typically funnels have user goals based on the business case. Depending on the conversion definition, a funnel can have various stages that a user might go through before making a decision, such as a purchase, signup, or filling up a form.
If we represent the stages graphically, it would resemble a funnel, hence the name Marketing Funnel. E.g. Out of 100 Visitors > 80 may have browsed products > while 50 would have added items to cart > and only 10 would have made a purchase. This top-down approach is wide at the top and narrow at the bottom, giving the concept the functionality of an actual funnel.
Benefits of Funnel Monitoring:
1. Helps identify key traffic sources
The three main website traffic sources include direct, referral, and search, although there may be some traffic from campaigns such as banner ads or paid search. In addition to measuring the number of visitors from each traffic source, you can consider analyzing the number of goal completions from each source. You can have funnels for each source if it makes more sense for your business.
2. Spot high-traffic pages
You will know where you are getting all the traction. It will help you focus your optimization efforts on the biggest opportunities.
3. Identify high-exit pages
You will know where exactly in the journey, users are dropping off. It will help you focus on pages/items that need improvement. It will help plug holes in your marketing funnel.
4. Know the source of high-quality visitors
You can identify the traffic sources that have the highest goal conversion rates to divert more efforts on campaigns involving those sources.
5. Understand shopping behavior
Shopping Behavior shows how many people view each product and indicates which pages are least persuasive—a great starting point for optimization efforts.
6. Analyze checkout behavior
Checkout Behavior shows where users drop off within a checkout process, grouped by form field (e.g. email, phone, address, credit card number). For instance, a user may start the checkout process and enter their email (which usually isn’t a drop-off point) but abandon the page on the payment info fields (which usually is a common drop-off point).
If that’s the case, you can explore more convenient alternatives, like adding a Payment wallet option or a one-click purchase button.
7. Monitor revenue
If you are into affiliate marketing then funnel monitoring will help you monitor your revenue through monitoring metrics such as Cost per Click(CPC), Revenue per Click (RPC), Revenue per search (RPS), etc.
8. Make rapid, profitable decisions
Funnels are a straightforward way to share where your business is doing well and where there are opportunities for improvement. Funnel reports are an easy visual aid to use in presentations to stakeholders and team members, helping you get buy-in for future optimization work for all stakeholders.
Metrics to track Conversions in Digital Business
For a Digital Business, following are the KPIs that needs monitoring: Sessions, Bounce Rate, Pages per Session, Avg. Session Duration, Click-Through rate, Email list, Growth rate, Email Open rate, Email Click-through rate (CTR), Email Conversion Rate, Email Unsubscribes, Engagement Rate, Impressions, Followers, etc.
Key Conversion KPIs which will help improve Digital business performance:
· Cost of Customer Acquisition (CoCA)
· Return on Ad Spends (ROAS)
· Average Order Value (AOV)
· Cart Abandonment Rate
· Ecommerce Conversion Rate
· Sales generated per Channel
· Repeat purchase rate
The list of KPIs depends on the business and the complexity of monitoring each one them increases as the business grows. For large scale digital businesses, just historical monitoring of past data is not sufficient. You need to take timely action if something is not right. An anomaly detection tool enables you to do that.
How does Anomaly Detection help in Marketing Funnel Analysis?
An AI-driven anomaly detection tool will monitor all business KPIs autonomously and trigger alerts if there is an anomaly. A tool such as CrunchMetrics leverages AI/ML algorithms to understand the business behavior of every metric separately and flag out any abnormalities in terms of an anomaly. It is a highly scalable application that can handle data from enterprises of all sizes and provide reliable output in terms of identifying anomalies in real-time and probable root cause analysis which will help businesses take action and improve conversions.
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Kshitish Sahoo is the product manager at CrunchMetrics. He has more than 7 years of experience in domains such as Energy and Utilities, QSR, Healthcare, CPG, Real Estate, Banking and Insurance and E-Commerce. He has worked on setting the strategy, developing the feature propositions, marketing the product and handling the financial metrics of the product.