The most basic concept of Internet industry: conversion funnel

Article Description: the 30/10/10 gold ratio in the internet industry.

Funnel (or conversion funnel) is one of the most basic concepts in the Internet industry, meaning that 100 of people pass through your website and you can turn several people into loyal customers.

Generally the most basic e-commerce funnel, about five steps:

• 100%-Flow
• 20%-email Subscriber (or Facebook fan)
• 10%-Join Member
• 3%-Place the order
• 1%-Repeat Purchase

You can see that I've added a number to the front of each step so that you have some ideas for the funnel (these are the numbers I'm getting at, and each company will be different because of their business model).

If it's a free smartphone App, it's about the funnel:

• 100%-click Admob/adsense/iad ads
• 20%-Download
• 6%-Open once
• 2%-Reuse

Note that each site will not have only one funnel, traffic from different places, often have different first, second layer conversion rate, for example: SEM (keyword ads) conversion rate is often more than SEO (Search engine optimization) a bit higher. So you have to be clear about how many major funnels you have and the detailed tracking.

But after "membership" (or "download"), that's the problem with your product itself. At this time different funnel people, the difference is relatively small. Fred Wilson had published a 30/10/10 law that was very consistent with my observations, presumably like this:

• 30% members/downloads will be used once a month
• 10% members/downloads will be used once a day
• The peak period of the same time online users are about 10% of the number of members

So in other words, starting with membership, your goal is to get 1/3 of users to use your service at least once, and then make 1/3 of them "the main customer." This is probably one of the most basic "gold ratios" in the Internet industry, and if it can be optimized to such a degree, it can be said that your product has reached a certain level of products Marketfit. If you can't keep 1/3 of your guests, you may want to consider Pivot to other products.

Internet industry has been 16 years, which not only accumulated a lot of esoteric knowledge, the rules are always updated.