Conversion Funnel

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In simple words it is the phrase or a word used to describe or track the route or journey, a user takes to traverse through the e-commerce website and finally do a purchase. Funnel, in general, is an instrument used to pass certain thing from bigger source to narrower end, and hence in the websites, funnel tells about the wider source i.e. customer’s navigation traffic to end i.e. the purchase of a product from that website.


The working of the funnel is very simple and gives the detailed analysis. The following figure gives a short example for the same:

  • AWARENESS- Many of the customers are linked to the e-commerce websites from the various links/ads present on different websites. But an only small proportion of those actually visits the website. So first step tells about the awareness proportion of the website, i.e. how many people are being aware of the e-commerce website and how many are clicking the link. Typical banner and advertising click-through rates are 0.02% in late 2010 and have decreased over the past three years.
  • FAMILIARITY- This section of the decreasing diameter funnel tells about the people who know your site already and are returning visitor. People are already familiar with the services of your website and are returning again. This accounts for the lesser number of people who are satisfied with your services and want to enjoy the same.
  • INTEREST- After the above parts, comes the interest. This section tells about the people who are able to find interest in your website and are browsing further. They might be able to find the desired service or product.
  • SHOPPING- If the product of interest is found, people tend to look out for more and buy that. At this point, the width of the funnel decreases further and contains a lesser proportion of the count of customers. Users who are able to find that one product which they were looking for, tend to shop for that product and hence land on the Shopping page.
  • PURCHASE- This section tells about the customers who were able to complete the payment and are done with the purchasing of the product. This section of the funnel further decreases in width and contain the minimal amount of users who actually completed the purchase process. It has the least width because not everyone comes to an end to purchasing the product.

Now for this funnel, customers can be lost in any section of the funnel. It actually decreases down the funnel. People are lost in most numbers at the top level i.e. Awareness level because it is not important that everyone click your website and visit the webpage. After visiting your webpage, they may not find your page interesting and so they quit after the top level and so traffic is decreased at the second from top level i.e. Familiarity and so on. So overall the funnel is a very useful term and analysis method which gives you an overview of all the traffic present for your website and how they are being manipulated at different levels.