Have you ever wondered how to run a successful CRO funnel analysis? Or ever think about why some online stores seem to effortlessly draw in sales, while others can’t seem to convert their visitors into buyers? The key to this mystery often lies in the effective management of sales funnels. In the world of Conversion Rate Optimization (CRO), getting to grips with your sales funnel can be a game changer.
Imagine, if you will, how turning a small gear can set an entire system into motion. This is a concept I was first introduced to as a child, thanks to a robotic toy from my aunt. I remember playing with a lot and would love how by merely turning the little gear you would cause all the gears to turn — including the biggest ones!
This is the essence of CRO. By focusing in on the little details you can make the big dials turn too. And, I’ll show you an example of this with a funnel analysis I have done, which can make the big wheels of conversion turn.
Ready to roll up your sleeves and dive into the basics of funnel analysis? Let’s gear up to transform you into a budding CRO expert!
What is a Sales Funnel?
Think of your paid advertising budget as the beginning of a sales funnel as the path your customers walk down from their first digital encounter with your brand to the moment they make a purchase. This journey is segmented into various stages, each crafted to nudge your prospect one step closer to buying.
The Tale of Two Funnels: A vs. B
Recently, I was comparing two funnels — for simplicity, we’ll call them Funnel A and Funnel B. Initially, the data suggested that Funnel A had a higher overall conversion rate.
However, a deeper analysis showed that Funnel B, though lagging in final conversions, excelled in securing early-stage, or “micro conversions”. The big question was why and how we could boost the micro conversions in Funnel A.
CRO Funnel Analysis Spotlight on Micro Conversions
Micro conversions are the small but significant commitments made by users early in their buying journey. These might include actions like clicking on your ad, loading your website page, reading your sales letter landing page (or in this case watching a video), clicking a call to action button, adding a product to their cart, and ultimately making a purchase.
While these actions don’t always result in immediate sales (save for the last one), they are vital for fostering user engagement. And if you cannot get people through the funnel and make them micro convert, well then, you cannot get them to make that macro conversion.
Learning from Funnel B’s Early Success
Upon closer examination, it became evident that Funnel B’s initial stages were more engaging. This was due to clearer connection between the ad and the video. This more intuitive user interface and “complete package” contributed to its higher rates of micro conversions, despite its lower overall conversion success.
Applying Funnel B’s Strategies to Funnel A
For starters, without this close examination, we would have missed this important piece. This little “gear” in the beginning of the funnel was a “gear turner”.
So, what did we do? We took the winning micro strategies from Funnel B and applied them to Funnel A. This strategic integration significantly enhanced user engagement in the early stages of Funnel A, improving both its micro and overall conversion rates.
Practical CRO Steps on How You Can Analyze & Optimize Your Funnel
Here’s how you can leverage these insights for your own sales funnels:
- Examine Each Stage:
Look at where potential customers are dropping off and figure out why. - Adopt Successful Tactics:
Implement strategies that have proven successful in other funnels. - Implement Tests:
Make changes in a controlled way to measure their impact accurately. - Iterate Based on Data:
Continuously refine and improve your funnel based on the data you collect. - Document Your Results:
If you are split-testing, try to formulate hypothesis and label them like a scientist.
FAQs About CRO Funnel Analysis
- What exactly is a micro conversion?
- It’s a preliminary action by a user that shows interest but doesn’t necessarily lead to an immediate sale. For example, when someone clicks on a YouTube ad; this is a micro conversion.
- Why compare different funnels?
- Comparing funnels helps identify effective strategies, allowing for optimization based on what works best.
- Are these methods suitable for beginners?
- Absolutely! Start with the basics, learn from each test, and gradually advance your strategies.
Conclusion: Your Next Steps in CRO Mastery
By now, you should have a clearer understanding of how analyzing and tweaking various aspects of your sales funnel can enhance your business outcomes. Interested in advancing your CRO skills further?
Let’s chat! We can review your current strategies and explore new avenues to boost your conversion rates. This is your opportunity to take your business to greater heights — don’t let it slip by!
