WHY FUNNEL ANALYSIS? WHAT QUESTIONS CAN YOU ANSWER?
When developing your Conversion Rate Optimization (CRO) strategy, it is important that you set up, analyze and understand various types of funnels. Your website or the different campaigns you launch might have each a different goals and funnels. In this context, it is crucial to always draw the user flow, divide it into steps, analyze the metrics of each step and optimize accordingly. Funnel analysis will allow you to answer many questions, mainly:
- Which step of the funnel, or page of the website, is breaking the user flow?
- Which step of the funnel has an unusual low conversion rate and why?
- Compared to benchmarks, how can I prioritize the redesign of the various pages of my website?
- How does the funnel’s CR differ per traffic source?
DIFFERENT TYPES OF FUNNEL:
First, it is important to know who your users are and what type of business objective do you want to achieve. Typically, e-commerce ventures would set sales as their main target. Hence, you should study the metrics of every step leading to the “Order Success” page. Other content websites, might have, as objective, to get as many email sign ups as possible. In this case, the funnel analysis will give you an indication concerning the optimization of your lead generation page.
The more you segment your funnel the better you get to understand your users. The following is a checklist of the main segments you should be checking when measuring and analyzing various types of funnel:
- Country and language subdomains: cultural differences might heavily impact the user behavior on your website and, hence, it is worth looking at these separately
- New vs returning visitors: usually, the CR of new visitors is much lower than that of returning visitors and, hence, you might want to investigate in detail the funnel of new visitors
- Device type: study the behavior of your users on pc, tablet and mobile as these should be treated as separate entities
- Browser version: even though you might be optimizing your website on Chrome, you might be forgetting to do so on IE, or even on old IE versions as IE8. Know what browsers your visitors are using and make sure you always check the full funnel on each of these. Also, do not underestimate the number of people using old browsers (IE8 for instance) as they might be your main opportunity to improve the CR
CASE STUDY – Namshi.com Improves Its Checkout:
Namshi had a single page checkout that was quite cluttered and that did not provide the information needed in a user-friendly way. Also, Looking at the funnel from Checkout to Success page, the CRO team identified an opportunity to improve the micro CR of that step and, hence, improve the overall CR. The team decided to AB test a 3-step checkout page against the existing single page checkout. Many of the tools described in http://youngsday.com/2013/10/30/12-tools-that-will-drive-your-conversion-rate/ were used to measure the funnel and the significance of that test. After achieving statistical significance on the 3-step checkout page, the team started to do multivariate tests on the page itself in order to improve every micro step. Hence, a funnel was set up and measured before and after every step of the checkout. For example, going from delivery address step to payment step is one stage of the micro funnel. Hence, the funnel metrics helped the team to prioritize and identify the various steps to improve within the website and within a page.
Thus, a thorough analysis of your various funnels allows you to take measured decisions when optimizing your websites.