Conversion Funnel Definition

A conversion funnel, also known as a sales funnel or marketing funnel, is a model that describes the path potential customers take, from first becoming aware of a product or service to making a purchase. It is an indispensable tool in growth marketing and works closely with target group definition.

Conversion Funnel

Understanding the conversion funnel

The conversion funnel reflects the process consumers go through when they move from prospects or leads to customers. This process is divided into several stages, usually Awareness, Interest, Desire and Action (AIDA). It is important to apply appropriate strategies at each stage. These are based on the target group and the respective phase in the customer journey and aim to optimize the conversion rate.

Importance of the conversion funnel in the marketing context

There are numerous strategies and methods to increase the effectiveness of the conversion funnel. A high conversion rate means that a large percentage of visitors convert, providing value to the business. By creating targeted buyer personas, companies can individualize their marketing strategies and maximize their effectiveness.

In addition, an important strategy for optimizing the conversion funnel is the use of lead magnets. A lead magnet provides an incentive for consumers to share their contact information and enter further into the funnel. Careful market analysis and continuous optimization can maximize the effectiveness of this tactic.

Identification and optimization of the conversion funnel

Only through awareness and understanding of a conversion funnel is it possible to target where improvement is needed. Market analysis and SWOT analysis can uncover areas where the company may be failing. A SWOT analysis helps identify strengths, weaknesses, opportunities and threats and respond accordingly.

Conversion Funnel and the Customer Journey

The customer journey and the conversion funnel are closely related, but they describe two different perspectives. While the conversion funnel looks at the entire process from the company’s perspective, the customer journey focuses on the customer’s experience on their path to purchase. Both aspects are important for a holistic marketing strategy.


Conversion funnel analysis is an important part of growth marketing. By better understanding the path customers take from first contact to sale, marketing activities can be adjusted and optimized to improve conversion rates and ultimately increase business success.