The decision funnel is the journey a consumer takes within your e-commerce store, from the moment they arrive until they decide whether to buy from you or from a competitor. Unlike the traditional marketing funnel, which segments audiences by their level of intent before they visit, the decision funnel happens inside the store and determines, question by question, whether a visit turns into a sale or a bounce.
Marketing Funnel and Decision Funnel Are Not the Same Thing
Funnel is a widely used term in marketing. Traditionally, its purpose is to divide an audience into different stages along a journey that gradually narrows down until the consumer converts. Each stage, from the broadest to the most specific, receives its own strategy, creative and messaging.
But what about the decision funnel? The one that happens inside your e-commerce store, when the customer has already arrived through a channel, whether they are more or less ready to buy, and now has to decide whether to purchase from your store or a competitor?
I started using this theory to address high bounce rates and low conversion rates for several clients, and it became something I now apply to virtually every project that comes to us underperforming.
It all comes down to a few questions — sometimes uncomfortable ones — and, most importantly, to truly understanding one thing: your customers don’t arrive at your website already certain that they want to buy from you.
As surprising as it may sound, it’s very common to hear business owners say: “There’s no way my product doesn’t sell.”
The answer is simple: yes, it is possible. Nobody is obligated to buy.
A Practical Example: Buying a Power Bank
Imagine the following customer.
They want to buy a power bank, they know exactly what they’re looking for, and they have clear requirements: it needs enough capacity to recharge a MacBook at least twice and an iPhone at least four times.
They need it delivered within seven days for a trip to Europe, and it can’t be too bulky because they plan to spend a lot of time walking.
Let’s ask a few questions to find out whether this customer will actually be able to buy from your e-commerce store.
Keep the word “able” in mind.
I’ll even include the obvious questions for the sake of the exercise, assuming that the store we’re analysing operates in a niche where power banks are sold.
Stage 1: The Customer Needs to Find You
Are products in this category being advertised?
If not, you already know the answer: your website doesn’t even enter this customer’s consideration set.
The sale is lost before it even begins.
Stage 2: The Customer Decides Whether to Stay
Now imagine that they have found your store.
Before anything else, they decide whether it’s worth staying:
- Did your store load quickly on their device?
- Does your store look trustworthy?
If both answers are yes, you’ve earned the customer’s attention.
But they still need to find what they’re looking for.
Stage 3: The Customer Needs to Find What They’re Looking For
This is where the sequence of questions really starts to narrow down:
- Do you sell power banks?
- If so, is it in stock?
- If so, do you offer models above 100W, or only lower-powered options?
- If so, can it be delivered within the seven days the customer needs?
- If so, are there complementary products that match their needs and could increase the basket value? Consumers will often choose to buy from a store that solves more than one of their needs.
Stage 4: The Customer Decides Between You and the Competition
Let’s assume everything above was a “yes”.
The sale is almost there.
But there’s one problem: a competitor has also answered “yes” to everything.
That’s when the final questions come in:
- Does your store offer free shipping for this order?
- Do you offer interest-free instalments or another convenient payment option?
- Do you offer any additional benefits? Loyalty points for future purchases, an extended warranty, free gifts?
The Customer Narrows It Down Until They Choose. The Question Is Whether They Choose You
Each question works as a filter.
The customer keeps narrowing down their options until they decide which e-commerce store to buy from.
If your store scores poorly on several of these points — or even just one critical point — the sale can be lost, whether that’s right at the beginning or right at the very end.
And be honest: you shop online too, so you know exactly how this works.
You’ve probably abandoned purchases from several stores because of a single “no.”
Solving this isn’t easy, but with today’s level of competition, it has become essential.
Even more so in a world full of marketplaces that offer all of this and more.
So, What’s the Solution?
Improving the decision funnel wasn’t even the main focus of this article. The idea was to make you confront some uncomfortable questions.
But everyone likes to leave with something close to a solution, so here are three possible approaches:
1. Become an Undisputed Brand
The customer buys from you without hesitation.
It’s the ideal scenario, but it’s only within reach of a few brands.
2. Turn as Many “No”s Into “Yes”s as Possible
Take all of these questions, add any others that make sense for your particular segment, and work on turning as many answers as possible into “yes.”
That’s how you overcome objections and improve your conversion rate.
3. Work With People Who Do This Every Day
This is the approach I like the most: work with Lemoon and let us help you solve all of this.
Let’s do it.
Frequently Asked Questions About the Decision Funnel
What is a decision funnel in e-commerce?
It is the journey a consumer takes within an online store, from arriving through a particular channel to deciding whether to buy from you or from a competitor. Each stage works as a filter that either brings the customer closer to a purchase or pushes them away from it.
What is the difference between a marketing funnel and a decision funnel?
The marketing funnel segments audiences by their level of intent before the visit and guides the consumer towards the store. The decision funnel happens inside the store and determines whether that visit turns into a sale.
How does the decision funnel affect bounce rate and conversion rate?
Every negative answer — such as a slow website, an out-of-stock product, a long delivery time or the lack of free shipping — can push the customer towards a competitor, increasing bounce rates and reducing conversions.
How can I improve my store’s decision funnel?
Map out the questions your customers ask at each stage and work on turning as many answers as possible into “yes.” Focus on speed, trust, availability, delivery times, payment options and competitive