The Conversion Funnel: Is Your Web App Successful?

Joshua Porter

August 29th, 2006

Mike McDerment, CEO of the web app Freshbooks.com, has written a great piece on measuring the success of your web app. He details the process of some folks we know pretty well: Bryan and Jeffrey Eisenberg.

Mike captures what the Eisenbergs call the Conversion Funnel, the funnel of user activity on your web app, in this graphic:

Conversion Funnel

The first key to the conversion funnel is to get real stats on each level. For each level, can you be sure that the number you’re using is accurate? Once you can be sure you’re getting relatively accurate numbers, it’s simply a matter focusing on the leaky levels to improve the situation.

One of the benefits of putting conversion percentages into this funnel diagram is that it gets rid of the more visitors/more revenue tendency. We often see a tendency to focus on getting more folks using an app knowing that revenue will increase as well. That works, but it doesn’t help with efficiency, or making the most out of the users you’ve got. What would be better? Having 1,000 paying users and 1,000 visitors per day or 500 paying users and 10,000 visitors per day? While adding users is desirable, improving efficiency is better.

For in-depth talk on the Conversion Funnel and other ways to improve the success of your web app, check out Bryan and Jeffrey’s full-day presentation at UI11: Creating Persuasion Architecture Online.

One Response to “The Conversion Funnel: Is Your Web App Successful?”

  1. » Las tres claves del e-Marketing Says:

    [...] Podemos observar estos pasos en forma gráfica en la denominada: Tunel de la conversión (The Conversion Funnel). [...]

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