Analysis of Website Conversion Funnels

Analysis of Website Conversion Funnels (eCommerce or lead generation or any other type of conversions) is important for optimizing digital user experiences.

A website conversion funnel is set up by

1. Identifying a series (funnel) of actions which a website user must take to complete a conversion. A completed conversion is an important event for meeting the business objectives of the website.
2. Defining this series of actions as goals. Each action in the funnel is a goal which must be completed before proceeding to the next action or goal. Hence the last & final action which needs to be completed to close the funnel, would be the website conversion for which the previous series of actions or goals in the funnel must be completed.  
3. Instrumenting the website to track and report on the completion of these goals in the conversion funnel regularly and accurately. 

A product conversion funnel in an eCommerce website is illustrated below

As seen in this illustration of product conversion funnel we have clearly 

1. Identified the series of actions a user must take to complete the conversion. 
2. Defined the conversion clearly. The final goal to close the funnel, is the product purchase. Hence product purchase is the conversion. 
3. The previous goals in the funnel which must be completed before the conversion, are clearly defined. 
• The first goal is to get the users to view the product - product views.
• The second goal is to get the users to customize or configure the product - product customization. Product customization is important to increase the sales dollars from each unit of the product.
• The third goal is to get the users to add the customized product to the shopping cart.
• The fourth goal is to get the users to checkout from the shopping cart.
• The final goal is the conversion for which the previous goals need to be completed. In this case the conversion would be recorded, when the users have purchased the product after completing checkout.  

 Regular and accurate reporting of website conversion funnels would lead to insights on

1. Which goals in the funnel are most likely to be completed.
2. Which goals in the funnel are least likely to be completed.
3. Why the users are dropping out without completing certain goals.
4. What is motivating the users to complete certain goals more frequently then other goals.
5. Purchase trends during different seasons and periods of time. What motivates the users to behave differently by completing further goals in the funnel, during certain seasons and time periods.
6. Which segments of users are most likely to complete certain goals.
7. Which segments of users are least likely to complete certain goals.
8. etc.

Signature: Roopkumar T.V.