E-commerce: How to Use Analytics to Plug Holes in the Conversion Funnel

Gniwisch pointed out that tests like that one aren’t about driving more traffic to his Web site, but rather pushing the traffic that does come to Ice.com deeper into the site. “If I have a 1 percent conversion rate on my site, and I have the opportunity to bring more people on the site, sure I’ll get more sales,” he said. But he believes that’s the wrong way to look at the problem. “If you plug the funnel and fix the places where people are exiting, you can make more money with the people who already are coming to your site,” he said. Using that attitude as a guide, he was able to increase conversion from 1.2 percent in 2005 to 3 percent in 2006, all without spending more on ads to drive more traffic to the site.