From Zero to Hero: Building a Winning Ecommerce Funnel

When we think about our own online shopping habits, it becomes immediately clear that the online buying journey is very personal and quite complex. We have a need, so we search for a product or service to fill that need. We discover a brand. We do some research. We compare. We consider. Maybe we browse a bit more. This journey – from the initial search to the final purchase – is the ecommerce shopping funnel. And optimizing each stage of this journey is more important than ever.  

Successful ecommerce brands blend technology with CX planning to effectively connect fragmented buying journeys. This requires a deep knowledge of the ecommerce funnel since shoppers typically bounce from different channels, devices, and touchpoints across a nonlinear path to conversion. Creating personalized experiences based on real data is the challenge here. Meeting shoppers’ needs – and your own growth goals – begins with a deep understanding of what the ecommerce funnel looks like for your business and your customers. 

What is an Ecommerce Marketing Funnel?

An ecommerce marketing funnel is a map of the customer’s buying journey that plots every interaction that contributes to a conversion (typically, the final sale.) The funnel is increasingly consumer-driven and it’s more complex than ever. Wrapping your brain around what the funnel looks like in 2025 is the only way to optimize each stage of the buying process. 

These stages include:

• Awareness: First contact. The shopper, we’ll call him Joe, learns about you (or your products) from outside channels like social media, paid advertising, search, or word-of-mouth.
• Consideration: Active research.  The shopper rabbit hole that involves lots of research and comparison. For example, Joe may watch videos on YouTube, scan forums, and download product specs from your website. He’ll also likely compare prices and features until he’s left with one or two likely choices.
• Conversion: Time to Buy. Joe finalizes his research and settles on a product. He’s ready to buy and buy he does, hopefully from you. 
• Retention: Keep the connection. You and Joe are friends now, but friendships need nurturing. Retention involves maintaining a relationship with Joe so he’ll buy from you again.
• Advocacy: Retention on steroids. Joe isn’t just loyal, he’s an advocate for your brand. He waxes poetic about you to his friends and writes glowing reviews.

It looks nice and neat, doesn’t it? But listing out the different stages is only the beginning of understanding the complex (even convoluted) ecommerce funnel, particularly when you consider that the buying journey looks more like a maze than a straight line from awareness to conversion.

5 Key Stages of an Ecommerce Funnel

Again, the stages of your ecommerce funnel are closely tied to the buying journey. Using our fictional shopper, Joe, as an example, we’ll define the funnel. Joe is interested in purchasing a starter drum set for his 7-year-old daughter. We’ll begin there. 

Stage 1: Awareness: First Contact

Joe’s “need” begins on Facebook when a friend shares a video of his son playing drums. Joe’s daughter Sarah has been drumming on everything in sight—maybe it’s time she has real drums to learn on. This moment marks Joe’s entry into your brand’s world.

At the awareness stage, potential customers discover your brand through multiple channels:

• Social media content showcasing young musicians thriving with your instruments
• Search results when parents research “best starter drums for kids”
• Recommendations, both online and off, from music teachers and other parents
• Educational content on blogs, competitors’ websites, news sites, etc. about nurturing musical talent in children 

Once you understand the most common ways your customer learns about you, you can drive traffic via the various channels – for example buying ads on TikTok and Instagram, collaborating with influencers to showcase your products, and creating content that ranks well for keywords Joe might be using to research starter drum kits.

Use the shopper’s motivation to create content that’s meaningful (e.g., a short video that addresses parental concerns about introducing children to musical instruments). This introduces your brand to Joe while simultaneously turning you into a trusted advisor. 

Stage 2: Consideration: Active Research

Joe turns to YouTube looking for videos of kids playing starter drum kits. This is his first encounter with your brand. He clicks over to your website, intrigued but cautious.  Drums aren’t a small investment, and he wants to make the right choice for Sarah. This is the consideration stage, where potential customers actively evaluate products and brands.

During consideration, shoppers seek more information through:

• Customer reviews and ratings. In Joe’s case, he’s looking for reviews from other parents
• Video demonstrations of a product in use (drums being played, jeans being worn, etc.)
• Detailed product specifications and comparisons 
• Expert recommendations. Joe is looking specifically for recommendations from musicians, parents, and educators
• Not-so-expert opinions from users (like children Sarah’s age) 

Email marketing plays a big role here. Joe signs up for your “Guide to Choosing Your Child’s First Drum Set,” which lets you nurture his interest with targeted content about different starter kits. This is an opportunity to keep the conversation going, say, with a newsletter series that provides maintenance tips, practice exercises, and success stories from your community of young drummers.

This does the trick, motivating Joe to add a drum set to his cart. But he leaves without buying because he’s still not 100% sure this is the right set for Sarah. At this point, you can re-engage with Joe by running “retargeted ads” that keep those drums (and your brand) visible as he browses online. The ads might show images of the drum set in his cart or reinforce his interest with a relevant headline like “5 Signs Your Child is Ready for Drums” or “How to Create a Practice Space That Won’t Drive the Neighbors Crazy.”

Social proof is another tactic that helps motivate shoppers during the consideration stage. Social proof elements like ratings, reviews, and popularity badges (e.g., 25 customers purchased this item in the past 24 hours) help Joe feel more confident about this big purchase. You can also pull user-generated content into the product detail and other key pages (e.g., kids performing with your drum sets).

Stage 3: Conversion: Time to Buy

After two days of research, Joe’s impressed with your brand. He’s also pretty sure he found the perfect starter drum kit for Sarah. He’s added it to his cart. This is a critical moment in the ecommerce buying journey – the moment the shopper turns his intention into action. At this stage, removing any friction between Joe and the “Buy Now” button becomes paramount.

Checkout must be smooth, easy, and incredibly fast. The term “streamlined checkout process” crops up often. Here’s what it looks like in practice: 

• Easy: Offer multiple payment options including credit cards, digital wallets, and options like Buy Now Pay Later or Klarna
• Fast: Allow guest checkout for faster purchasing
• Brief: Minimize form fields. Stick to essential information
• Secure: Display security badges (these build trust) and clear links to return and privacy policies
• Transparent: Show shipping cost and delivery time as early as possible in the checkout process

The above list incorporates the basics of a great checkout experience, but you can also sweeten the deal (and add urgency) with persuasive messaging like “Free shipping for the next 24 hours” or “Only 3 drum kits left in stock.” Motivate Joe to make the purchase, but don’t overwhelm him. 

A word about mobile – Over 60% of online shopping now happens on mobile devices. Your checkout process must be flawless on smartphones. Incorporate large, thumb-friendly buttons, forms that automatically adjust for mobile keyboards, and payment options like Apple Pay. If Joe can’t easily complete his purchase while waiting in the car during Sarah’s parkour class, you’ve probably lost the sale.

Stage 4: Retention: Keep the Connection

Joe’s painstaking research – and your careful attention to the buying journey – are a success. Sarah loves her new drum set. Now your goal shifts to keeping Joe engaged with your brand and encouraging him to return for future purchases. 

Send Joe regular emails about accessories like drumsticks, higher quality drumheads, and different kick pedals to level up the set as Sarah builds her skills. Go beyond the transactional.

Successful retention strategies focus on building lasting relationships through:

• Personalized email campaigns based on purchase history (e.g., maintenance tips for Sarah’s specific drum model, or upcoming local music events).
• High value content like how-to videos, informational guides, and inspiring testimonials.
• Loyalty programs that reward repeat purchases with points, exclusive discounts, or early access to new products.
• Strategic upselling through targeted recommendations (like premium drumsticks and practice pads).

Personalize your retention strategy based on the customer. Use Joe’s purchase data and browsing history to create tailored experiences. For example, you might send a follow-up email two weeks after purchase asking how Sarah’s drumming journey is progressing or offer a special “first upgrade” discount when she’s ready for intermediate equipment.

A loyalty program takes retention even further, drawing shoppers back repeatedly by offering points for actions (purchases, reviews, referrals, etc.) Points can be redeemed for perks like free shipping, premium accessories, or exclusive merch like branded hats and t-shirts.

Stage 5: Advocacy: Retention on Steroids

There’s lots of potential to continue building a strong relationship with Joe – a loyal brand advocate. As Sarah’s skills grow, her needs change. Advocacy is the final stage of the funnel and focuses on turning happy customers into vocal supporters. 

Encourage advocacy through various outreach initiatives and incentives like:

• Referral programs that reward customers for bringing in new sales
• Affiliate partnerships with music teachers and schools
• Social media contests showcasing student performances
• Customer spotlights featuring young musicians’ progress
• Easy sharing options for proud parents to spread the word 

Brand ambassadors like Joe can also drive awareness and help instill trust by sharing product reviews and user generated content. 

Tools and Metrics to Track Your Funnel’s Performance

It’s one thing to build an ecommerce funnel and quite another to optimize all the moving parts that make your ecommerce marketing approach work well. You need to identify roadblocks that prevent conversion and fix them as quickly as possible. For that, you need the right tech. AI-powered tools like Monetate help you monitor funnel performance with: 

• Audience Analytics & Insights: Track customer behavior patterns and segment performance
• Journey Analytics: Understand how customers move through your funnel across channels
• Audience Discovery: Automatically identify new segments and opportunities for personalization
• A/B and Multi-Variate Testing: Validate what works at each funnel stage

Each stage of the buying journey comes with its own set of relevant metrics, here’s a cheat sheet to help you monitor (meaningful) performance: 

• Awareness: Traffic sources, bounce rates, initial engagement, impressions, clicks
• Consideration: Time on site, email open rates, return visits
• Conversion: Cart abandonment rate, conversion rate by segment, Overall conversion rate
• Retention: Repeat purchase rate, customer lifetime value
• Advocacy: Net Promoter Score (NPS), referral rates

Common Mistakes to Avoid

To keep Joe moving smoothly through the buying journey, here are some common mistakes to avoid:

1. Overcomplicating the Funnel

Keep it simple – too many steps or options can be overwhelming, especially at the early stage of the buying journey and during the checkout phase.

2. Ignoring Mobile Users

Mobile isn’t a trend. It’s how people shop. If you don’t factor mobile optimization into your ecommerce marketing strategy, you’ll lose sales.

3. Failing to Test and Optimize Regularly

People change. Technologies change. Competitors get more competitive. All of this requires running tests to gauge the effectiveness of key elements like CTAs, headlines, and checkout flow.

4. Neglecting Cart Abandonment

Cart abandonment is a reality of ecommerce shopping. Combat this with a strong outreach strategy that incorporates tactics like cart recovery emails, exit-intent popups, and retargeted ads. 

5. Skipping (or skimping on) Personalization

Joe is buying a drum kit for his young daughter, not for himself. If you use messaging that doesn’t acknowledge this, show him irrelevant products, and don’t understand his needs – he will bounce. Invest in personalization so that the buying experience remains meaningful.

6. Poor Checkout Experience

Checkout is your last best effort to close the sale. Make it a good experience. Limit the steps involved, provide adequate payment options, include clear information about shipping costs and delivery times – all of this matters. Again, keep it simple.