Empower your Product Management process with our product funnel for Product management

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foreign Market I hope you're all doing great today we are gonna cover one of the most important but super easy and basic analysis that any brand today would be doing we call this funnel analysis uh we use funnel majorly for two purposes one is to understand what is the conversion rate and second is to understand where exactly are our users dropping on the website or the app right so if you see this funnel uh this is a classic e-commerce flow uh how exactly it goes about is a user would be coming onto your website then if there are certain products that the user wants to view the user would be viewing at that product then if the products are interesting enough they will add that product to the cart and and then end up buying the product right this is the four steps involved in a user visiting to a transaction there could be more step but have taken these four major steps uh and uh let's look at the conversion rate if you look at the conversion rate it is about 1.65 which is pretty decent for an e-commerce website uh you would see the conversion rate to be somewhere around one two three percent from a visitor to conversion uh and for a few excellent website there it goes up to even five percent so whereas while I say it is pretty decent there's definitely scope of improvement this could be easily somewhere around two to three percent so to improve this to two to three percent uh let's try to understand where exactly are our users dropping on this website so the four steps are page browse which is visit to the website product view viewing a product add to cart is obviously add to cart and then purchasing the product right so if you look at this funnel uh from page blog visiting a website to even viewing a product uh the conversion is only 40 which means sixty percent of their website traffic who's coming onto their website is not even viewing a single product which is a point of concern um if this should be somewhere less than 50 40 right at least they should be sixty percent moving on to the next stage uh Landing onto the website and viewing a product uh this probably could be because of their source of acquisition so when I say source of acquisition I'll take a separate session on uh source of acquisition or affiliate marketing or how do Brands get traffic onto their website but to keep it short this website can get traffic from different sources like FB or any kind of social media Google or they would have been tied up with any uh some affiliate partner and the traffic would be coming from different sources of affiliate partner so to understand this better um and and what exactly happens in this website is if at all this website is primarily dependent on an affiliate partner to get traffic onto their website uh and if they're on certain models like cost per click cost per visit uh probably these affiliate partners are doing a very bad job in getting a quality traffic they are just focusing on making money and getting some raw traffic onto their website uh because they are going to be paid on cost per click and cost per visit right um so in order to improve this first step uh our first level conversion rate we should focus on acquisition strategy um and honestly if it has to be acquisition strategy that will have to work on that for that we'll have to do further analysis I'll talk about that analysis at the end of this video uh second thing is if you look at stage 2 to stage 3 which is like uh the overall percentage of people moving uh from the total audiences only 11 but between product view to add to cart we have about 27 percent of the audience moving from product view to add to cart now even this number seems to be pretty low they should be somewhere more than 30 35 percent uh how do we exactly improve this is we majorly focus on two things one is right uh website and app experience how do we give right website and app experience if a user is looking at a particular product that is an intent that the user is throwing out when I say that is an intent the user is throwing out the user tells us that the user is interested in that product but we aren't sure whether the user is going to buy that product so that's where product recommendation comes really handy for you to understand product recognition to keep it very simple you would have visited this website uh you would have visited myntra.com amazon.com if you are viewing a particular product uh you scroll down a little they'll show you some recommendations saying hey you may also like similar product so what we are going to do is first we'll have to check whether this website has any recommendation as such if at all they have some recommendation as such we'll have to look at um how good is the algorithm right so when I say how good is the algorithm we are majorly focusing on what is the quality of recommendation that they give right so that that is what we'll focus on to increase this product view to add to cut so that the right set of products are shown to the user and user adds it to the cart and the other way is if even after doing that if there's a certain number of people dropping off um these are the users who have already shown interest on your website so retargeting them through different channels becomes very important when I say retargeting it could be uh you drop off and you go to a social media channel the ads are seen there uh with relevant products or you can use offline channels like email SMS push notification to Target back this customer and get that customer back onto your website these are the two things that we'll be doing uh to improve product view to add to cart ratio now what I've shown is a very basic funnel uh there's a lot more you can do with this funnel for now I have taken all audience into consideration uh the funnel could drastically change when you uh plot the same funnel for new audience against existing audience when you say new audience people who are visiting your app or visiting your website for the first time their drop off would be on an initial level uh foreign existing audience could be at a later stage of the funnel so the problem that you'll have to solve for each of this audience would be completely different right uh so or could be same or to an extent but majorly you'll have to identify what is the exact issue or where exactly are people dropping off of different demographics uh different demography and different behavior when I say behavior I'm referring to the first time visitors too and a new visitor when I say different demography I'm referring to people of different cities people of different genders right and all those information would be available when you start tracking this information on the website yeah so if I to give an example right uh again I'll relate both source and demography together here um say if I'm getting a lot of traffic from tier 3 City and ta3 City page browse to product view uh is only 10 right whereas a few audience coming from tier one the page browse to product views 60 then I actually uh my the right set of audience for me to get into my website would be from tier one rather than tier three that's just a simple example it could be more complicated than this right uh or say for example going back to the other model where if if I'm working with an affiliate partner right uh I'll have to see uh the different uh source of affiliate partners that I work with and different source of traffic that they generate for me or different kinds of ad that they run and generate for me which kind of an ad leads to a lesser conversion compared to which kind of an ad leads to a better conversion so uh while I've shown a basic funnel you can always complicate this by adding more condition rather than doing it on all contacts you better do it on a segmented audience segment could be new users versus an existing user different sources of traffic different demography of a user base is that you'll come to know what where exactly or what exactly you'll have to fix uh in order to increase your funnel conversion rates hope this was useful uh thank you for tuning back to our Channel my tech Market uh please subscribe so that you get more videos on your feed have a great day