TRACKING
Product Funnels
The product funnel is a framework outlining the stages of the customer journey or milestones, starting from its awareness and ideally leading to customer conversion and retention rates.
Why we use them?
It helps the product team identify drop-off or fallout areas within their CX (customer experience), which can give the research and design teams guidance as to where to further investigate why dropouts are happening within certain sections (e.g., the payment button was below the fold, and users couldn't see it).
It also helps organizations & product teams improve conversion rates and create a positive customer experience leading to higher satisfaction and better results.
Can help marketing teams identify the most successful customer acquisition channels (ie. paid or free social media posts) and help product teams understand which channels had better conversion rates.
Can also help track, understand and create "drip" marketing efforts (ie. user didn't complete the purchase and we sent and email the next day with a 10% off that specific item promo).
Some ideas on what you can track
Awareness stage
Website traffic – the total number of visitors to your site from different sources (organic, referral, paid ads, social media).
Social media engagement – user interactions (likes, shares, comments) on your social media platforms.
Education & Interest stage
Content engagement – how prospects engage with your content, including page views, time on page, and bounce rate (the percentage of users that navigate away from the site after viewing only one page.)
Newsletter open rates – an indication of how effective your email marketing campaigns are in capturing and retaining interest.
Engagement & Consideration stage
Free trial sign-ups or demo bookings – the demand for more in-depth information and the desire to try out the product are direct indicators of serious interest in your product.
Product Qualified Leads (PQLs) – the number of users who have experienced the product value enough to consider purchasing the product. This depends if you offer a free product that eventually leads to a paid subscription or pay wall.
Purchase stage
Conversion rate – the percentage of leads that turn into paying customers, critical for understanding the effectiveness of your sales process.
Customer Acquisition Cost (CAC) – the total cost of acquiring a new customer, essential for evaluating the efficiency of your marketing-sales funnel.
Retention/Recurrence stage
Churn rate – the rate at which customers cancel their subscriptions, vital for understanding customer satisfaction and long-term value.
CSAT – a customer satisfaction score, indicating how good the product is at addressing customer needs and delivering a positive customer experience.
Loyalty stage
Referrals – the total number of times when customers refer new users.
Reviews - star reviews, some product teams will look for NPS scores
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Great article and