What is a Conversion Funnel?

A conversion funnel is the journey and specific path someone takes from first seeing your brand to becoming a customer. The typical conversion funnel includes several touchpoints. These interactions often occur across different channels. For example, someone might first discover a business through a Google search result before seeing multiple ads for the same business and making a purchase. Understanding the conversion funnel helps companies nurture customers along the way by providing the right information and interactions at the right time. 

Stages of the Conversion Funnel

The conversion funnel is commonly divided into three levels:

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• Top of funnel (TOFU): The top of the conversion funnel is where potential customers first discover your brand or product. During this phase, customers identify their needs and explore potential solutions. For businesses, the focus of this phase is to increase visibility and build brand awareness to attract any people who might be interested in what you offer.

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• Middle of funnel (MOFU): In the middle of the conversion funnel, customers have clarified their needs and are now evaluating your products. This phase involves comparing your offering with competitors and deciding who best meets their needs.

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• Bottom of funnel (BOFU): This is the point where customers are ready to buy. For businesses, the goal at the BOFU is to remove any barriers to conversion and create a seamless experience that leads to a successful transaction.

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Within these three conversion funnel levels, companies typically subdivide the conversion path into four distinct stages:

Awareness 

The awareness stage is where customers first learn about a brand or product. This can happen through social media, paid ads, and search engine results. The goal at this stage is to make a memorable first impression. Prospects at this stage are still figuring out what they need and most won’t buy from a company on first contact.

Interest

The interest stage is where prospects explore more information about products or businesses. This can involve browsing product pages, reading customer reviews, and comparing competing products. Businesses can nurture interest at this stage by providing as much valuable information as possible. This can include detailed product descriptions, helpful FAQs, and high-quality product imagery.

Consideration

In the consideration stage potential customers are close to making a purchase decision. They have evaluated the potential options and are now determining which solution best fits their needs. During this stage, it is important to convince the customer that you have the best solution to their unique pain point. Highlighting positive reviews, testimonials, and other social proof can increase trust and motivate customers to go ahead with the purchase.

Action

The action stage is where a customer reaches the end of the conversion funnel by making a purchase. This stage is critical, particularly for eCommerce companies as any friction, like complicated checkout processes or hidden fees can lead to cart abandonment. Streamlining the checkout process can help finalize the sale.

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