Customer Funnel Analysis: The Key to a Successful E-commerce Business

Successful Ecommerce Shopping -Credit Card Payment - Customer Funnel Analysis

Before a user becomes a customer, a series of steps are involved which ultimately leads to conversion. From the first point of contact with the brand, various factors such as broken links or unmet wants, determine if the user takes the desired action or drops out.

A customer funnel analysis examines the journey of your users through all the steps towards conversion, and tracks how many reach the intended goal. It is a fundamental tool for gaining helpful insight into the behavior of users across your digital platforms.

Characteristics of a Good Customer Funnel Analysis Tool

An effective analytics tool should help you understand how to optimize your website to improve customer experience and encourage visitors to take the desired action. The following features ensure its effectiveness.

A heatmap makes it possible to monitor your visitors in real-time. You can better understand what is working, and refine the website based on the customer’s reactions and expectations, giving them a better user experience.

Your heatmap tool should be able to track every click, conversion, mouse movement, the operating system in use, device, geographic location, and every in-page behavior. This makes filtering of sessions easier and tracing the real problematic area more efficient.

Session replays can make it possible to view historical customer experience analytical data and find answers to current customer behavior that could be as a result of past user experience.

Actionable Insight You Can Obtain From the Analysis

Where are the major drop-offs?

This sheds light on the points that need improvement. If most drop-offs are occurring between visiting the website and loading the cart, you need to come up with strategies that entice visitors into buying.

If it’s all smooth until the point when credit card information has to be entered, consider other payments methods that would make the customer feel more secure.

What is the time delay between the steps?

If your users are taking too long to load the cart, this is an indication of indecisiveness or a complicated process. The information provided may not be adequate.

Use clearer pictures with more detailed information. Create simpler and more straightforward processes to give the customer an easy time completing the purchase.

How is the market segmentation?

A customer funnel analysis can show the user-segment which is more likely to convert. It becomes easier to know the market segment that your product appeals to the most.

With this information, you can make decisions on new products, and campaigns that target the market segment you want to draw in.

How Does a Change Affect User Behavior?

The best thing about a funnel analysis is that you can quickly determine if a change to your website or product has a negative effect on your conversion rate, and take prompt action to prevent further damage.

A customer funnel analysis is the key to a successful e-commerce business.

With the right tool which can capture every movement from your users and show it in real time while still recording for future use, you can keep your customers satisfied and loyal giving them an experience that meets their every need.

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