Acquisition Funnels’ role in improving conversion rates | Mixpanel — one of the best tools to monitor users metrics

Intro

Every e-commerce company starts with a goal in mind-to acquire customers and eventually sell them something. The process of acquiring new customers for a business online is known as an “acquisition funnel” or simply “the funnel.” This article will cover the basics you need to know about funnels and the single best tool that can help you improve your conversion rate in the blink of an eye.

What is an acquisition funnel?

The funnel is the process of acquiring and retaining customers through a website. In its simplest form, it can be defined as an acquisition, or in other words, when a user finds your site by typing in a search on Google or another Search Engine Marketing (SEM) platform, clicking on an ad or link from another site, etc. Funnels are used in many aspects of marketing: from lead generation funnels, for example, to product sales funnels. Here are some examples from different niches:

Acquisition — sales or leads;

Activation — product trials;

Retention — product purchases, subscriptions, or memberships.

Obviously, all those 3 sectors are crucial when we’re speaking about raising conversion rates, and if you decide to give acquisition funnels a shot, we would recommend you start by monitoring the metrics. That’s where different tools come into play. Now you know what acquisition funnels are, what they are used for, and why using them might be beneficial, so let’s get to the most interesting part of this article.

Different tools that will assist you with funnels

You can use software that will be your best friend during the whole process. Special tools gather info about actions users make on your site, like filling out a contact form or downloading a free e-book, for example. This tool then calculates the “funnel conversion rate”, which is the percentage of people who enter into the process compared to those who actually complete it. For example, if 100 people fill out a contact form, and only 2 send in their details, then you have a 2% funnel conversion rate (as opposed to the usual 50% sales conversion rate). You can also find data on the number of people who visited each step of the way. This will give you a clear understanding of where your conversions are being lost, and you can make the necessary changes to improve your funnel’s success ratio.

What is Mixpanel?

Note that there are also free and paid versions of software available online, but many people have found that Mixpanel is the best option due to its simplicity of use and ease of implementation on most websites (it requires no code).

There are two major ways Mixpanel might help you with understanding the customer journey and using the metrics in the most effective way possible:

1) Use them to understand how users interact with your site so that you can create a better user experience for your visitors. Identify your top traffic sources and compare them with the most valuable actions that brought customers who made conversions on those traffic sources.

2) Monitor what the weak sides of your marketing campaign or site are and get a clear picture of which steps are causing the most potential revenue leaks. Using this information, you will be able to get more customers and generate more revenue online by running events that could improve the conversion numbers (such as sending an email or offering coupons). Once you understand which traffic sources bring in the most valuable customers, create funnels from these specific actions and compare their conversion rates. We hope that you get a better understanding of what is causing your main revenue leaks and know how to fix them. For example, aim to reduce the bounce rate and the abandoned cart rate as much as possible.

3) Mixpanel tracks returning customers, giving you even more detailed data than other tools. This is how it works: When a person visits the site for the first time, Mixpanel places a cookie on their browser, which monitors future activities and determines who caused a certain event. The “Viewed Homepage” instrument isn’t clever enough to distinguish between returning and new users, which is why we need to instrument it.

4) Remember! The more interactions you have with your users, the more data you will gather — and with Mixpanel, it will be gathered automatically, thus simplifying the entire process for you.

Conclusion

In conclusion, if you want to improve your conversion rates, it’s important that you have a clear understanding of how the human brain works and what is going on inside their heads as they progress through the buying process. Neuroscience sales tips can help you understand why people buy or don’t buy from different marketing campaigns so that you know which ones are most successful. The best way to increase conversions is by running events such as sending emails at key points in the customer journey. MixPanel’s software will help you with every step of your tunnel acquisition implementation process and will be irreplaceable once you learn how to use it in the most effective way.