Lemon #99. The funnel
While Reading “Growth Hacking” from Luis Díaz del Dedo we learned that a product funnel is the visual representation of the user distribution throughout different stages differentiated by the level of commitment of the users with our product.
Every stage should have a series of parameters associated that are measurable and traceable throughout the time. Every stage is unique, and a user/client never knows in which stage is in and when he/she is changing.
Each company should have its own funnel, but the most common stages tend to be as it follows:
- Acquisition: It counts the unique users that we can get into our website.
- Activation: Users that have understood the product.
- Retention: Users that come back to use your product. If they never come back, they did not find any value in our product.
- Revenue: Get the user to spend money for our product.
- Referral: It should be pushed throughout the process. How many users can they get for us?
Then, each stage can be divided into a subset of stages to better track the behavior of our users/clients and to determine where we are losing them or where we can improve. The more detailed each stage, the better.
It is important to start from the top to the bottom, and once we have a stage optimized, move to the next one. The funnel is as weak as the weaker of its points.
What should you improve in a funnel as the one showed above?
Luis Díaz del Dedo @ Growth Hacking.