In the field of E-Commerce, the different behavioural steps of a potential customer to the actual purchase is called Conversion Funnel. The allegory of a funnel is quite appropriate if you image the purchasing in online-shops to be at the end of this funnel. Step by Step, more and more potential customers will decide not to buy the product or to buy it somewhere else and at the end you have the customers who will buy your good.
There are several steps which make the visitor of the web-page – the potential customer – a customer who buys your products. This change from a “visitor” to a paying customer is the conversion, the required steps are called “micro conversions”. On every level of the process on the way to a successful buying, the number of potential customers decreases; that is the case if they decide not to continue a step of the micro conversions anymore. The different stages for the decision-making can be the images, a banner ad, an instruction or the final click on “Send Order”. Consequently, there are ways to optimize the Conversion Funnels in order to decrease the number of potential customers who won’t buy the product at the end. So, the Conversion Funnel rate gives information about how many potential customers will become paying customers and it is of course rewarding if this number is as high as possible.