Purchase Funnel Metric - Klipfolio
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The purchase funnel (alternatively called the marketing funnel) is typically broken down into five stages: awareness, interest, consideration, preference, and ... KPIExamples/DigitalMarketingMetrics&KPIsPurchaseFunnelMetricUnderstandyourcustomeracquisitionprocessfromawarenesstopurchase.GetStartedFreePurchaseFunnelDefinitionThePurchaseFunnelanalyzesyourcustomeracquisitionprocesstohelpyouunderstandhowpotentialcustomersdiscoveryourproductorbrandand,moreimportantly,howtheyeventuallybecomealoyalcustomer.Thepurchasefunnel(alternativelycalledthemarketingfunnel)istypicallybrokendownintofivestages:awareness,interest,consideration,preference,andpurchase.Fromameasurementpointofview,thismaymaptoavarietyofsalesandmarketingchannelsfromsocialmediaandwebvisitstomailinglistsandsalescontacts.Thekeytothepurchasefunnelisanalyzingconversionratesfromonestageofthefunneltothenext.Thestrengthofthefunnelistheabilitytozeroinonyourstrengthsandweakness.Forinstance,youmayhavestrongbrandawareness(representedbyahighnumberofwebvisitors)butyourabilitytoconvertleadsintowinsmayrepresentaweakpoint.Thefunnelallowsyoutoseeandactonthisinformation.KeyTermsFunnelstage:Fivekeystagesthatrepresentthetypicalcustomeracquisitionprocess.Stagesinclude:awareness,interest,consideration,preference,purchase.Conversionrate:Thepercentageofpeoplethatmovefromonefunnelstagetothenext.PurchaseFunnelSuccessIndicatorsAhighconversionratethroughallstagesofthefunnel.Highvolumethrougheachstageofthefunnel.Improvingconversionratesforstagesperformingpoorly.PurchaseFunnelChallengesIt’shardtopinpointwhatstageacustomerisactuallyatinthepurchasefunnel.Earlymarketersknowthepurchasingfunnelasthemarketingfunnel,butinadditiontoanamechange,thismetricitselfhasbeenmodifiedtofitthecompetitivedigitalageofmarketing.Andthisnewlandscapeischallenging.Nolongerdopotentialconsumersgraduallymovedownthefunneluntiltheypurchasefromonecompany.Marketingeffortstodayhavetobeintegrated,meaningtheyaddressthemultiplemediachannelsthatbuysinterfacewithintheirdailylives--emailcampaigns,videos,e-newsletters,onlinereviews,productcomparisons,etc.Goodbyetoone-waymarketing,hellototwo-wayconversations.Here’ssomeexpertinsight:GuyChriswick,ManagingDirectorofWebloyaltyUK“Consumersnowspend34%moretimeonshoppingforfashionthantheydidtenyearsago.Takenalongsidetheincreasinguseofonlinechannelsbyconsumersaspartofthisprocess,thisofferstheopportunityforbrandsto‘personalise’thepurchaseexperience.”--Whatthisalsomeansisthatthedurationoftimeforconsumerstomovefromthetopofthepurchasefunneltothebottomismuchlongersothismetricneedstobepairedwiththeonlineconversionsmetrictoallowforafullunderstanding.PurchaseFunnelBestPracticesMakesureyourwebsiteiseasytonavigatetoavoidanysortofdistractionthatcouldcausealostopportunity.Whencustomersareintheconsiderationstageofthefunneltheyareweighingtheprosandconsofthepurpose,soavoiddistractionstoensuretheyfindwhattheywantfast.Reviewsareagreatwaytoensureyouareaddressingthepreferencesinthecustomerjourney.Alle-commercecompaniescanbenefitfromallowingcustomerstowriteproductandexperiencereviewsbecauseiteliminatesanydoubtspotentialcustomersmayhave.Atthepurchasestageofyourfunnel,youhavetothinkaboutwhatwouldmakethatcustomercomebackorbetteryetspreadtheword.Meaning:howareyoubuildingloyalty?HowtoMonitorYourPurchaseFunnelinReal-timeOnceyouhaveestablishedmetricsforyourPurchaseFunnel,you’llwanttoestablishprocessestomonitorthisandothermarketingKPIs.Dashboardscanbecriticalinthisregard.LearnmoreabouthowtotrackyourPurchaseFunnelonaDigitalMarketingDashboard.PurchaseFunnel:TopResourcesHowtoDefineCriticalKPIsAcrosstheMarketingFunnel,JessicaDonlonCustomerJourneyChallengesYouNeedtoOvercomein2016ChallengetheFunnelApproachTheConsumerPurchaseFunnel:FromBrowsingtoBuyingRelatedMetrics&KPIsExternalWebsiteLinksMarketingOriginatedCustomersWebTrafficConcentrationStarttrackingyourmetricsLevelupyouranalyticswithaKlipsaccountGetStartedFreeThiswebsiteusescookies.BycontinuingtousethiswebsiteyouareagreeingtoouruseofcookiesasdescribedinourPrivacyPolicyOK
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