A sales funnel is the process of a visitor who passes by your store turns into your customer. For the success of an eCommerce, the sales funnel must be optimized with proper strategies to convert a visitor into a customer of yours. Once you have a marketing funnel set up, you have fine-tuned the lead conversion engine on.
But just like any other marketing task, you need to periodically check if the marketing funnel is working in the desired manner, and fix if it’s not.
Here are a few metrics that can determine the working of your marketing funnel:
The website traffic is a basic metric of the efficiency of the marketing funnel and is probably viewed by every eCommerce store owner. The web traffic is very important when while building the marketing funnel as it allows you to see the volume of people passing visiting your website as per the content.
For example, let’s say that we created a set of content, grouped into the four key stages. The website traffic can be found for each group:
- Awareness: 1000 visitors
- Consideration: 800 Visitors
- Purchase: 50 Visitors
- Repeat purchase: 30 Visitors
A huge drop-off in pageviews from “consideration” to “purchase” content is noted. We can now analyze the content and determine whether it’s been optimized for the right people and most importantly, fix the issue that was causing people to exit the marketing funnel.
Another way to check whether your marketing funnel is working correctly is by taking a look at your website’s conversion rate. The formula to calculate the conversion rate is:
(Total website visitors/sales) x 100
If the conversion rate of your visitors is lees, then your sales funnel might need a little boost. There’s probably an obstacle that prevents people from progressing to the next stage. This obstacle might be hurting your lead conversion.
The average eCommerce website conversion rate is 1-2%. To have sales above this percentage, extra effort needs to be put in. Optimize the funnel for better conversion.
Most of the people add items to the cart and exit the website later on before completing the purchase, leaving the items in the cart unattended. They are still in the purchase stage, where the chance of them being converted to a customer depends upon a nudge.
However, calculating your cart abandonment rate can give you a brief overview of the performance of your marketing funnel.
A cart abandonment rate above 69% average might indicate the underperformance of the bottom layer of the funnel. Re-optimizing the content, retargeting the audience with abandoned cart emails, or adding more social proof and trust signals to your checkout page might help to plug the leak.
Cart abandonment must be reduced to as less as possible. If customers are purchasing, this means your sales funnel is effective at converting the leads
Another key metric in detecting the efficiency of a marketing funnel is the rate of converting the cart abandonment into a purchase, which is called as the cart recovery rate.
A high cart recovery rate means the bottom-funnel content used to drive people back to your website is effective. They find it interesting enough to read, resulting in absorbing your knowledge, increased trust and conversion.
With the above-mentioned metrics, you could check the efficiency of your marketing funnel. Using a funnel engine for your Shopify eCommerce store is the best option as it would optimize your funnel according to the best strategies. Optimize your eCommerce funnel, test it and re-optimize it for the best lead conversions.