A concise definition of this term is challenging, but it is an important concept for any site that features a membership-based monetization strategy.
The simplest way to break down an audience is binary:
However, a purchase funnel contemplates that there are many more “levels” for non-members (and even for members as well). For example, a site that monetizes through subscription revenue may break down its audience into:
The idea of a funnel comes in to play because the number of visitors who fall into each segment tend to decline as we progress towards the ultimate goal (a paying member). In other words, it can be visualized like this:
The following image from BlogMarketingAcademy represents a “flatter” way to visualize this process, with multiple autoresponder emails designed to prompt an upgrade to a members area:
The biggest takeaway here relates to crafting a strategy to gradually move potential customers through the purchase funnel, instead of trying to close on a sale all at once. For many sites, investing in (and continuing to test and improve) an email autoresponder is one of the biggest opportunities for a “slow drip” sales process. The links below contain much more on building effective email autoresponders.
There are 3 (three) indicators to see whether your purchase funnel works
There are some ways to improve your purchase funnel
The purchase funnel is the metric to analyzes your customer acquisition process to help you understand how potential customers discover your brand how they eventually become loyal customers.
It’s hard to pinpoint what stage a customer is actually at in the purchase channel since marketing efforts today have to be integrated with multiple media channels that buy interface within their daily lives
Once you established metrics for your purchase funnel, you’ll want to establish processes to monitor this and other marketing KPIs
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