E-commerce sites have a median conversion rate of 2.63%. This means 97.37% of site visitors are simply browsing. This is an ugly average given the high cost involved in gaining traffic.
However, you can do better by comprehending the consumer’s buying journey so you can improve your platform’s digital marketing tactics and boost its conversion rate. A lot of e-commerce business owners are unable to conceptualize their site’s sales funnel beneficially for their customers and their company. They think the process is streamlined – from X to Y – but a more effective method would be to tackle it phase by phase.
This post can help you do it by enabling you to understand a typical consumer’s journey. Plus, you can learn how to use the insight to improve your e-commerce sales funnel’s buyer retention and conversion rates.
Introduction to The E-Commerce Sales Funnel
This funnel shows the journey undertaken by a visitor to move from prospect to an existing buyer and onward to retention. This journey can be fast (the customer immediately buys something they see and like) or it could take them months of years to make the final purchasing decision.
There is a lot of difference in sales funnel design among industries and marketers. For instance, there are demand-generation funnels, marketing funnels, and conversion funnels. While each adopts a slightly different method, their main goal is the same which is to map the buyer’s journey toward making the wanted action.
5 Phases of The Funnel
To understand your sales funnel, you can simplify it into the following 5 phases:
The awareness phase: In this phase, customers are learning about your brand through marketing tactics like referrals, paid traffic, organic search, and others.
The consideration phase: In mid-funnel, you’ve have attracted the consumer’s attention and interest. Now, you need to take the process forward through product descriptions, customer testimonials, and other relevant content.
The decision phase: Here, customers are assessing their final options. Now, you can show your customer support abilities and offer limited-time discounts to help the customer select your product.
The buying phase: In this phase, you’ll find consumers who have who have decided to purchase. Make the process easier by offering them a frictionless account registration and the checkout experience. If the customer decides not to purchase, retarget them with relevant ads to bring them back into the funnel.
The retention phase: These buyers have gone beyond the sales funnel. You can use loyalty programs, customer accounts, and email sequences to keep these consumers interested in cross-sells, upsells, and add-ons. The first four stages aim to move the prospect forward in the funnel and convert them. The objective of the fifth phase is to get repeat purchases from existing customers.
Next, we’ll discuss how to enhance each funnel phase.
How to Enhance The Awareness Phase
Since this stage is high up the funnel, it can be difficult to view the relationship between your ad expenditure and revenue. But, the tactics you use for top-of-the-funnel consumers are vital for developing your target buyer segment. In the awareness phase, you should aim to attra