1 Learn the concept
A conversion funnel describes how people move from first seeing a business to taking the action it wants. It is called a funnel because many people enter at the top and fewer reach the end. Mapping the funnel shows where you lose people and where a small change could make a big difference. This lesson explains the common stages and how to improve each one.
2 See it in action
- Awareness: people learn the business exists.
- Interest and consideration: they compare options and look for proof.
- Conversion: they take the action, such as buying or booking.
- Retention: they return, and sometimes bring others.
Worked example
Which leak do you fix first?
Numbers: 10,000 visitors, 3,000 product views, 600 carts, 300 checkouts, 120 purchases.
Step rates: 30%, 20%, 50% and 40%. Overall: 120 divided by 10,000 is 1.2%.
Reading it: the lowest step rate is product view to cart (20%), which points to product pages, prices or missing information.
Impact: lifting that step from 20% to 30% would mean 900 carts instead of 600, and at the later rates about 180 purchases instead of 120.
Takeaway: fix the weakest step that has a clear cause and measure again.
3 Study an example
Example scenario
An online store sees many visitors, many product views and few purchases. The funnel shows most people leave at checkout. Simplifying that page does more for sales than buying more traffic would.
4 Apply it and download
- Draw a funnel with four stages for a business you know.
- Estimate how many people reach each stage.
- Mark the stage with the biggest drop and use the funnel template to plan a fix.
Worksheet Funnel templateOpen, print or save as PDF