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A Conversion Funnel describes the stages leading up to a sale, from the moment potential customers come across a product/service until they purchase. The funnel metaphor illustrates the gradual decline in the number of potential customers – many look at a product, but few end up buying. At the “Upper Funnel” stage, buyers start to research a type of product and brands. At the “Middle Funnel” stage, they narrow down brand selection. Having decided on certain brands, at the “Lower Funnel” stage, they look for information and reviews to help them make a decision.

Optimizing a Conversion Funnel is different at each stage. At the top, it begins with creating awareness and interest in the product and driving quality traffic to the website. In the middle, it means building desire for the product and trust by demonstrating its benefits and advantages over competitors’ offerings. At the last stage, it prompts potential customers to take action (purchase) and encourages customer retention using targeted offers and campaigns.