Don't Be the Dentist Who Pulls the Wrong Tooth: Master Funnel Analysis to Boost Your Sales

Imagine going to a dentist who removes a perfectly healthy tooth and gives you a high dose of painkillers. You might feel temporary relief, but soon the pain returns, often worse than before.

Similarly, many businesses throw money at ad spending without addressing the real problem. If you don't identify the right issue you cannot fix the problem. This is what most businesses are doing. They are investing heavily in Ad Spends but not fixing their funnels.

A client came to us a while back to increase their revenue with the same problem statement: which channel to invest in? Even though they were getting great traffic, yet their CR remained below 1%, YES BELOW 1%!!!

Can you guess why?

People were not able to find the product they were looking for, the ones who did find the relevant items often ended up purchasing. You need to understand the journey of your customers. You need to understand what’s stopping them from befriending you and your brand. You need to remove the friction that’s stopping them!

Why is funnel analysis important? By analyzing each stage of the funnel, you can identify where potential customers drop off and what might be causing it. This allows you to make data-driven decisions to optimize each stage, ultimately leading to higher conversion rates and increased revenue.

But what is it?

Funnel analysis is a method that visualizes and tracks the steps a potential customer takes from their initial interaction with your brand to the final purchase. This journey is often depicted as a funnel because it starts broad at the top (with many prospects) and narrows down towards the bottom (with fewer conversions)

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Your typical funnel in reality!

You would’ve read or heard about the AIDA(Attention-> Interest -> Desire -> Action) framework this is AIDA in the real world of data!

Let me explain how it works technically:

1.????? Awareness: You see an ad on Youtube or Facebook or Instagram, you click it and enter to a website, the tracking implementation fires a tag that records an event known as session start, Basically your journey for that website starts as a potential customer. You are at the awareness stage of the brand.

2.????? Interest: You see a product or service, depending upon how the events are set; View item (product view) or view_item_list (many products being viewed) is recorded. You are exploring the offering at this stage, known as the interest.

3.????? Desire: If you like the product or service and think of it as being reasonable you desire to purchase it. Therefore you add it to cart, the event being recorded here is also called add_to_cart.

4.????? Purchase: Going through the cart and adding your details you finally pay the price, and the journey for this session ends with the event of purchase.

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Let’s walk through a few funnels…

What do you think is the main reason for fewer conversions from this above funnel?

What I can see is there’s an extremely high 84% drop-off rate between the "Visited Site" stage and the "Product Viewed" stage. This means that a large portion of your site visitors are not even viewing the products, which is a critical issue impacting your overall conversion rates.

Would you still try to increase your marketing budget for CRO? I would dig deeper to understand that is this the case for all the landing pages. For all the Channels? For all the days of the week? Make a sub-funnel at this stage, to understand why its happening. ?It could also be due to complicated navigation or a poor website layout or the page load speed.

How about this one?

Let me lay the stats for this one:

1.????? Visited Site to Product Viewed: Approximately 56.1%

2.????? Product Viewed to Add to Cart: Approximately 90.1%

3.????? Add to Cart to Begin Checkout: Approximately 46.7%

4.????? Begin Checkout to Shipping Info: Approximately 35.9%

5.????? Shipping Info to Add Payment Info: Approximately 14.8%

6.????? Add Payment Info to Purchase: Approximately 8.8%

Now we see 2 major drop-offs, but more pressing here is the 2nd stage, Product Viewed to Add to Cart: Approximately 90.1%. ?This could be due to a number of reasons like Inadequate or unconvincing product descriptions and images can deter visitors from adding products to their cart or lack of customer reviews or social proof can also negatively impact the decision to add products to the cart. Or like what happened to our client people are not able to find the right products.

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Did you know?

According to a McKinsey & Company report, companies that personalize the customer journey see conversion rates that are up to 5 times higher. Funnel analysis provides insights into customer behavior, allowing you to personalize your marketing efforts and interactions, ultimately fostering customer loyalty and increasing their lifetime value. (https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-personalization)

Also…

A study by the Baymard Institute found that the average website abandonment rate is a staggering 69.23%. Funnel analysis helps you identify and address the reasons behind cart abandonment, leading to a significant reduction in lost sales. (https://baymard.com/blog/ecommerce-checkout-usability-report-and-benchmark)

Pricing?

Well though my digital copywriting mentor-Guru Alex Cattoni gave a number I decided to remove bias but found that GPT 4-o also gave the same number:

Don’t worry I have an amazing offer for you, or let’s say the first 10 of you, the first 10 businesses get this checkup for free. All you need to do is:

1.????? Share your thoughts on this article,

2.????? Share it in your circle,

3.????? Fill up this form: https://forms.gle/TYSUxdbnLg3uu7Tn8 ?(MUST)

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Hope to connect with you to get your Conversions go up High!!!

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Ciao!

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