What is Funnel Conversion Rate?
Funnel Conversion Rate is a metric that measures the percentage of users who complete a specific action, or set of actions along the marketing or sales funnel, ultimately leading to a desired outcome, such as making a purchase or signing up for a newsletter. The funnel conversion rate is used to assess the effectiveness of a business's marketing, sales, and user experience strategies in driving users toward these desired outcomes.
The conversion funnel is typically divided into several stages: awareness, consideration, decision, and action. By analyzing the conversion rate at each stage, businesses can identify potential bottlenecks, areas for improvement and opportunities to optimize their strategies to enhance the overall customer journey.
Funnel Conversion Rate Formula
Funnel Conversion Rate = (Number of users who completed the desired action) / (Total number of users who entered the funnel) x 100
For example, if 1,000 users visited an online store and 50 of them made a purchase, the funnel conversion rate would be:
Funnel Conversion Rate = (50 / 1,000) x 100 = 5%
Example of KPI target
22% conversion rate
Funnel Goals Completed Rate
Why is Funnel Conversion Rate important?
By monitoring and optimizing this digital marketing metric, businesses can make data-driven decisions to improve their marketing and sales efforts, enhance the user experience, and ultimately drive revenue growth.