A conversion funnel refers to the path taken by a potential customer from the moment they become aware of your product or service to the point of making a purchase. It is also known as the sales funnel or the customer journey and is used to measure the effectiveness of a website in terms of turning visitors into customers.
History of Conversion Funnel
The concept of a conversion funnel dates back to the early days of advertising and marketing when businesses started to measure the effectiveness of their campaigns. However, the modern conversion funnel as we know it today was first introduced by E. St. Elmo Lewis in 1898. The model consisted of four stages, namely Awareness, Interest, Desire, and Action, which still form the foundation of most modern-day conversion funnels.
The conversion funnel has become an essential tool for businesses operating in today’s digital age. According to a report by eMarketer, the global e-commerce market is expected to reach $5.4 trillion by 2022, up from $3.5 trillion in 2019. With such a huge market volume, businesses need to create a solid conversion funnel strategy to stand out from the competition and convert potential customers into loyal customers.
The effectiveness of a conversion funnel can be measured by analyzing the number of people who complete each stage. According to a study by HubSpot, the average conversion rate for a website is around 2.35%. This means that for every 100 visitors, only two or three will make a purchase. However, by optimizing the conversion funnel, businesses can increase their conversion rate and generate more revenue.
In conclusion, a conversion funnel is a vital tool for businesses looking to increase their online sales. By understanding the customer journey and optimizing each stage of the funnel, businesses can turn visitors into loyal customers and stay ahead of the competition.