A Quick Guide To Tracking Your Sales Funnel KPIs (What Funnel Tracking Is, Its Importance, and What Exactly To Track To Boost Conversion Rates)

Tracking important numbers like Key Performance Indicators (KPIs) in your sales journey helps you see how well your business is doing and how to improve your strategies further. 

One integral concept in the sales process is the sales funnel, which categorizes your target customers into distinct stages as they progress through your sales pipeline.

This practice enables you to closely monitor a lead’s progression from the initial stage all the way down to conversion, allowing you to make the necessary adjustments along the journey for generating high-quality leads.

In this article, you’ll gain a comprehensive grasp of what funnel tracking is, why it’s important, and the metrics that you need to monitor to ensure that you maintain optimal performance throughout your entire sales funnel journey. 

So, let’s dive right into it!

What is Funnel Tracking?

Funnel tracking involves observing and examining the various phases that users undergo when engaging with your e-commerce platform, SaaS offering, or services.

3D graphics of a colorful sales funnel and different kinds of charts.

At the very top of the funnel, you have a pool of potential customers who are just becoming aware of your brand or product.

As these potential consumers move down the funnel, they become more engaged and interested, eventually ending up making a purchase or conversion at the bottom of the funnel.

The objective of funnel tracking is to grasp user actions, pinpoint any potential obstacles or instances of disengagement, and enhance the user experience to improve conversion rates.

Why Should You Track Your Sales Funnel’s Performance?

A person typing on a laptop with white outlined question marks popping up.

Tracking your sales funnel isn’t just for show, but it’s essential for staying competitive in today’s market.

For instance, imagine that you invest time, money, and effort into marketing campaigns, only to see lackluster results.

(It’s not only a demotivator, but it’s also a huge waste of time)

With proper tracking, you can pinpoint exactly where things are going wrong and course-correct in real-time.

Think of it as having a GPS for your sales process because it guides you through the twists and turns, helping you achieve higher conversion rates and increased revenue.

What Are the Stages of Sales Funnels?

The components of a sales funnel.


The initiation of a sales funnel occurs when individuals first encounter your company, product, or service, marking the broadest section of the funnel.

This introduction could occur through various channels, such as visiting your website’s homepage, stumbling upon a social media post, or receiving a recommendation from a customer or follower.

Initially, individuals may not even recognize a problem requiring a solution, but as they progress through this stage, they begin to identify the issue and explore potential remedies.

It’s during this phase that your focus shifts towards raising awareness of the features and benefits of your offerings and market them as viable solutions.

The primary objective here is to pique enough interest during the initial interaction that prospects are compelled to take action, such as signing up for a valuable free offer in exchange for their contact information, like an email address or phone number.

Additionally, this stage serves as an opportunity to refine your understanding of your target audience and buyer personas by gathering data and deepening insights into their preferences and behaviors.


As your potential prospects move into the consideration stage, they’re actively evaluating their options.

But once they become acquainted with your brand, the next stage of the funnel involves cultivating their interest in your business and familiarizing them with what you have to offer.

More often than not, stimulating your prospects interest begin with online content addressing topics relevant to your business’s offerings which simultaneously establishes the company’s authority and credibility.

The main objective is to interact with potential customers and foster trust, enticing them to subscribe to your email list or blog, and in order to enhance the likelihood of them opting in, concentrate on producing high-quality content and visuals for your website.

Some companies even appeal to potential customers by offering eBooks containing relevant information tailored to their target audience, while others provide discount codes to incentivize initial purchases.


Necessitude is just a fancy way of referring to your target customers’ desire to purchase your products.

One way to further encourage your prospects to purchasing your offerings is by utilizing product reviews and testimonials and showcase the value of your solution and how it has benefited previous customers facing similar challenges.

Other effective strategies for this stage includes various tactics such as creating landing pages, social media posts, FOMO marketing or ads featuring enticing lead magnets like newsletter subscriptions, e-book downloads, quizzes, and free trials.

By leveraging attention-grabbing elements like compelling visuals and engaging descriptions, partnering with influencers, and offering incentives such as free shipping further enhance the appeal of your product.

Ultimately, the goal of this stage is to persuade potential customers that not only do they need the product, but they specifically need it from your company.


This stage is where all your hard work pays off as prospects take the plunge and go from potential leads to paying customers. 

At this stage, your company’s attention needs to shift towards effectively meeting your new customer’s needs and expectations.

This can include providing additional support or educational resources related to your product, aiding them in understanding how to use it correctly or efficiently.

To optimize the likelihood of a purchase being pushed through, prioritize streamlining the buying process to make it as effortless as possible for customers.

Additionally, you can also consider potential enhancements or adjustments to the checkout process to maximize your conversion rates.

By monitoring minor adjustments, such as incorporating reviews into the checkout page, they can offer valuable insights into optimizing the purchase decision process for potential buyers.


Last but certainly not least, we have the loyalty stage, because it’s not enough to acquire customers, but you want to keep them coming back for more.

This stage involves nurturing the customer relationship, providing excellent service and support, and offering incentives to encourage them to repeatedly make purchases and advocate for your brand, further amplifying word-of-mouth marketing efforts.

What Should You Be Tracking at Each Stage?

Now that you understand the stages of the sales funnel, let’s talk about what metrics matter most at each stage. 

  • Awareness Stage: Track metrics such as impressions and reach to measure how visible your campaigns are. For instance, monitor the number of website visits, social media followers gained, and the reach of your online ads like on Facebook. These metrics help assess your brand’s exposure and initial audience engagement.
  • Consideration Stage: For this stage, you should focus on engagement rates like email open rates, click-through rates, time spent on your website, lead magnet downloads, webinar registrations, and the like. These metrics indicate the level of interest and consideration among your prospects.
  • Necessitude stage: Tracking metrics such as customer pain points, market demand, and competitor analysis allows you to make informed decisions and tailor your offerings to effectively address the specific needs of your potential customers.
  • Conversion Stage: Monitor conversion rates such as the percentage of leads who complete desired actions like making a purchase or signing up for a trial, abandoned cart rates, wishlist rates, form submission rates, and checkout completion rates to identify potential barriers to conversion and optimize the user experience accordingly.
  • Loyalty Stage: In this stage, you should specifically measure customer retention metrics like repeat purchase rates, customer satisfaction scores, and referral rates. Additionally, you can also track Customer Lifetime Value (CLV) to assess the long-term value of your customers and prioritize efforts to retain them.

Remember, the key to effective funnel tracking is to continuously optimize them based on the current trends in the market.

Constantly monitor your metrics, identify areas for improvement, and tweak your strategies accordingly (Don’t just set it and forget it!)

start tracking Your Funnel Performance and Improve Your Overall Conversion Rates

Now that you’re armed with the knowledge of how funnel tracking works and why it’s essential for your business, it’s time to take action!

And if you’re unsure of where to start, it all begins with setting up the right tools and metrics to monitor your funnel effectively.

Invest in a reliable analytics platform that allows you to track key metrics at each stage of the funnel, from awareness to loyalty, and once you have your tracking systems in place, make it a habit to regularly analyze your data and identify areas for improvement.

Ask yourself, “Am I losing leads at a particular stage? Is there a bottleneck in my funnel that’s hindering conversions?” and use your data to tweak your strategies accordingly.

And remember, funnel tracking isn’t a one-and-done deal, but it’s an ongoing process of refinement and optimization.

Continuously test new approaches, measure their impact, and iterate based on your findings. By staying agile and adaptive, you’ll ensure that your funnel remains finely tuned for maximum performance and conversion rates.

Having said that, are you interested in learning more about effective marketing strategies that ended up in real-life results?

If you are, then don’t hesitate to join our email list and gain valuable insights into how successful people got to where they are now and apply them to your own marketing tactics!

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