How E-commerce Can Optimize Their Marketing Funnel For Maximum Conversion

20 December 2017 2277

If you are a successful e-commerce, then you have probably considered how best to continue to grow your company. However, the competitive nature of e-commerce requires that savvy marketers continuously optimize and improve on the marketing/sales funnel.


After all, this is where potential customers either learn about your products and eventually purchase or completely forget you, never to come back again. You will want to make sure that each stage, you decrease the number of potential customers that do not convert into the next stage.


In this article, Ivan Hruska, head of Marketing at ROI Hunter will go over:

  1. How to determine which part of the funnel to focus your resources on
  2. Calculating the conversion rate and determining your benchmark
  3. Building a continuous flow of potential customers

Which part of the marketing funnel do you need to focus on?

No matter the size of your business there will always be a goal to reach or a fire to put out. Determining what issues you’re trying to solve is the first step to finding a solution.


Depending on what stage you have the most trouble with, you will need to adapt your advertising. The ecommerce marketing funnel is very similar to other marketing funnels. The distinguishing factor is that for e-commerce brands, almost every section will inevitably drive people back to your website instead of a brick & mortar store for example.


So take some time to look through your marketing activities in the past year. 


  • Are there any trends that keep recurring? 
  • Look at your marketing funnel, where do you have the largest drop off? If this is at the beginning then maybe you need to focus more on product/brand awareness. 
  • If there is a significant loss of clients from the top or middle of the funnel, then you might need to remind your target audience about why they need your product. 


Your findings will determine your actions and what tactics you use to drive consumers to buy from you and more important, keep coming back.

Calculate conversions and set your benchmark

You can easily calculate this by comparing the number of people that you have at any point in the funnel to any section below it. Based on the e-commerce marketing funnel below (from Kipzier), you can determine how many visits you had to your web page or product views.


For the sake of this example, let us say 10,000. Then you can find out how many product views you had, you can then look at the next stage, product customizations. If there were 500 purchases, then you know that you have a 5% conversion rate from product view to purchase. 

It might be difficult to find out what the conversions for each stage of the funnel is for your vertical but steep drop-offs should signal that there is a problem.


Below, is a table from Invespcro that provides a breakdown of different e-commerce vertical and the conversion rates they should expect to get.

Below there is a table that shows the overall ecommerce conversion rates.

These tables give you conversion rates based on purchases and not each stage of the funnel. However, having a benchmark will help you know what to aim for.

Build A Continuous Source of Potential Customers

Regardless of where you fall, you will need to optimize at every section. One way to do this, is by building a continuous source of customers. For simplicity’s sake, I will break down the marketing funnel into three parts: top, middle, bottom.


1. Top of the funnel

This part can be difficult for new e-commerce brands. For established brands, it is a matter of keeping the brand top of mind. Use this part of the funnel to grow knowledge and loyalty to your brand with interesting how-tos, facts, news and more.

  • Some methods to increase visitors to the top of the funnel are to:
  • Reach out to instagram influencers and send samples to them
  • Reach out to blogs and press that share similarities with the products in your online store
  • Engage on social media regularly with your followers
  • Use prospecting ads to increase brand awareness


2. Middle of the funnel

In this section, you can both sell and show other products that are related to your products. To help increase potential customers who add products to their cart, you can:

  • Show related products as customers search
  • Send e-newsletters with deals and discounts


3. Bottom of the funnel

This section should be used to drive sales:

  • Serve remarketing ads to potential customers who showed interest in products, specific pages or left items in the cart


In order to build a continuous source of customers, you can use Facebook pixels for constant remarketing based on certain events that are triggered on your site.


Maximizing the marketing funnel can take a lot of time and work. However, if done properly, you can optimize conversions so that the highest number of purchases are made over time and you aren’t left struggling later on.

Ivan Hruska

Head of Marketing at ROI Hunter and ROI Hunter Accelerate, a platform designed to help optimize Facebook advertising at every step of the marketing and sales funnel.

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