If your business is struggling to attract customers or suffers from a low conversion rate, this article can offer valuable insights to improve your results. Understanding the business context is essential to carry out an accurate analysis. Understanding the customer's purchasing journey and identifying what stage they are at allows you to direct the best strategy for attraction and conversion. And to understand this journey, we will use the sales funnel, which is a strategic tool that demonstrates the different phases a customer goes through, from the first contact with the brand to the completion of the purchase.
The term "funnel" is used because, as potential customers advance through the stages, the number of people decreases, reflecting those who give up or are not yet ready to purchase the product or service.
This tool helps companies understand consumer behavior at each stage of the purchasing process. By identifying where the customer is in the funnel, companies can personalize their marketing and sales actions, increasing efficiency and conversion rates.
Let's explore a practical example of how to identify a customer's purchasing journey and employ key indicators to assess success at each stage, with the goal of guiding them toward conversion.
1) Top of the Funnel (awareness): At the beginning of the journey, the customer does not know that they need a product or service to solve a problem. This is the moment when awareness begins to emerge, as he begins to explore information and better understand his needs. For example, a consumer experiencing back pain may not initially realize they need a new mattress; he just starts looking for content about well-being and ergonomics.
At this stage, the objective is to attract visitors and increase brand recognition. Using the previous example, it is at this stage that the customer needs to know the mattress brand. The following KPIs can be used to measure this objective:
1. Reach (impressions): measures how many people were exposed to the campaign or content. It is an important metric for evaluating brand visibility.
2. Website traffic (unique visitors): the number of new visitors to the website or blog, originating from marketing campaigns. Evaluates the effectiveness of actions in attracting the public.
3. Engagement on social media: interactions such as likes, shares, comments and link clicks. Measures acceptance of the content by the target audience.
2. Middle of the Funnel (consideration): In the middle of the funnel, the focus is on engaging leads and sparking their interest in the product or service. Using the example of mattresses, now that the customer knows they need a new mattress, at this stage the customer already recognizes that sleep and well-being are essential and begins to look for specific solutions.
This is the time when the brand should provide more detailed information (product comparisons, customer reviews, guides on how to choose the ideal mattress and even educational content on the benefits of a good rest). The objective is to help the customer realize the value of the product and how it can solve their problem, bringing them closer to the purchasing decision.
1. Lead Conversion Rate: Percentage of visitors who became leads when filling out a form or downloading content, such as an e-book.
2. Cost per lead (CPL - Cost per Lead): Average cost to acquire a new lead through marketing campaigns.
3. Email opening and click rates (Open Rate and CTR): Measures the level of engagement with email marketing campaigns, reflecting the lead's interest in the content sent.
3) Bottom of the Funnel (Decision): the objective is to convert leads into customers. The KPIs here measure sales team efficiency and closing rate. In the example of mattresses, the customer is already seriously considering purchasing the product. He can compare prices, analyze promotions, consult the warranty policy and check customer testimonials.
The sales team can offer personalized service, special payment terms or even a demonstration of the product, with the aim of eliminating any objections and facilitating the purchasing decision. Success is measured by KPIs such as:
1. Sales Conversion Rate: Percentage of qualified leads that converted into customers. It is one of the main metrics for evaluating the efficiency of the funnel.
2. Customer Acquisition Cost (CAC): Average cost to acquire a new customer, including all marketing and sales expenses.
3. Revenue generated (Revenue Generated): Total direct revenue generated by sales made during the analysis period. It is a crucial metric for measuring the impact of conversions.
Now that we know what the customer journey is and how to measure it, we need a solution to put it into practice. Have you ever thought about having a data analyst in your business to extract this information, create indicators and generate value for your business?
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