Gaining conversions out of marketing activities is a big goal for most companies – that’s clear. However, often, what is unclear, is how prospects become customers (or don’t). In recent years, it has become increasingly clear that the journey is the goal with regards to customers.
Therefore, the path to conversion has become one of the most crucial adjustment points in online marketing. Thus, it is worthwhile for every company to accompany potential customers on it. To help with adjusting the path to conversions aptly, there are analysis tools such as Google Analytics or AT internet that can be used to perform a funnel analysis. But what is this exactly, what are the advantages, and what does this mean for the customer journey? We have summarized everything worth knowing about funnel analysis in the following.
What is funnel analysis?
Funnel analysis can also be called conversion path analysis, which makes the subject even more evident. Funnel analysis involves examining user behavior at each step along the way to conversion. It focuses on the two questions of whether and where users bounce prematurely and end their journey on your website. Suppose you imagine a purchase in an e-commerce store at the end of the customer journey. In that case, fewer users will complete the final steps of buying an item than will just put something in their cart.
Why is funnel analysis so effective?
It helps generate leads:
Already at this stage, often big mistakes are made. The structure of your page and the corresponding address must fit. You should maintain user-friendliness and clarity and implement the appropriate mix of advertising media as supporting pillars. Suppose users do not feel addressed; they will quickly leave your page. With the help of thorough analysis, you can recognize the shortcomings and optimize your page accordingly.
Measuring and improving usability:
For your funnel analysis, all inquiries and ordering processes must be straightforward and easy to understand. Otherwise, there will be dropouts along your conversion path. With funnel analysis, you can measure behavior at every step of the customer journey and identify your optimization potential.
Optimization:
Pinpoint analysis makes ideal optimization possible in all areas. You can do this at any time, as long as you have collected a significant amount of data.
What you need for a funnel analysis in Google Analytics
At the beginning of every analysis, there must be goals. This is no different when conducting a funnel analysis in Google Analytics. Once an account has been created and set up in Google Analytics, you’re ready to go. We have a short guide here on how the Google Analytics View Setup should ideally look.
If you want to map a conversion funnel, you will first have to define your goals. To do this, click on the cogwheel that lets you access the admin area in Google Analytics and select the menu item “Goals”. Here you can specify your own Conversion Goals or use one from the template.
We recommend using Google Tag Manager in combination with Google Analytics for your funnel analysis. For an example of how to set up a goal template for a completed contact form, see our Google Tag Manager tutorial.
For example, for your funnel analysis, micro-goals such as adding a product to the shopping cart and macro goals such as ordering a product might be helpful.
Once you have set everything up, all the funnel steps you wish to measure can be viewed and analyzed in Google Analytics. All that you need to do is to open the funnel visualization tab.
In funnel analysis, your company can obtain countless exciting pieces of information about the customer journey. However, the focus should always be on essential metrics. We have listed the top 5 here.
Conversion Rate:
The conversion rate shows how the goals you set are performing. You can calculate your conversion rate by dividing your conversions by the number of sessions measured within the same timeframe.
Bounce Rate:
Perhaps the most important metric to start. Your bounce rate represents the ratio between sessions that are longer than two seconds and users who leave your website immediately.
Acquisition:
What channels do your visitors use to access your website? You can access this view quickly through the funnel analysis in Google Analytics. This information is essential for evaluating the performance of your various advertising channels.
Session duration and page views:
In Google Analytics, it is possible to see how long users stay on your page and how many subpages they visit. With this information, you can learn to understand where they exit your website.
The number of visitors: A classic data point in many analyses. The number of visitors and their development also play a role in your funnel analysis – although not the central part.
In general, we recommend you check these data metrics regularly to make sure your data is correct.
Key figure benchmarks
There exist benchmarks for each industry so that you can understand where you rank in your industry. These benchmarks should serve you as a comparison and, in most cases, can be easily researched on the internet. In the beginning, however, it makes sense to work on your performance and funnel independently of benchmarks so you can achieve better results and, in the end, generate more revenue.
What happens after the analysis?
Once you have analyzed your funnel, we suggest you optimize every step of the funnel according to the insights you have gained. As a result, you will make the path to conversion on your page as easy as possible for your users!
Thanks to years of experience and valuable insights gained in web analytics and conversion optimization, we are perfectly set up to support you in the whole process. Or, if needed, in parts of your analysis, such as setting up a funnel or analyzing the existing funnel.
