Landing Page or Online Storefront: What to Use? Comparing and Understanding the Funnel Differences

Today, we’ll discuss the topic of landing pages and online storefronts in the microfinance (MFO) vertical. Each of these options has its own features, advantages, and disadvantages, and the choice between them depends on the advertising campaign goals and the characteristics of the target audience.

Analyzing the Landing Page Funnel: Traffic Flow Path

Unlike an online storefront, a landing page focuses on a specific loan offer from the MFO vertical. This creates a direct path for the customer: from search to loan acquisition, thereby increasing conversion chances. Let’s delve into what a funnel with a landing page looks like in the MFO vertical and the stages traffic goes through on the way to a loan.

Breakdown of the Funnel:

• Attracting traffic. Of course, the most crucial aspect is traffic. Facebook is a good choice.
• Landing page and redirect to the MFO site. Once users come to the landing page and select suitable loan terms regarding amount and duration, they encounter a data collection form. After the user submits their contact information on the landing page form, they are redirected to a site where a specific product is presented.

Next, the choice remains with the client: to choose this offer and submit an application or to leave the website if they don’t like the offer. In the future, if the client leaves the site, they can be retargeted using email or SMS campaigns and attempt to monetize them by directing them to a storefront with offers.

When It Is Better to Use Landing Page: Pros and Cons

In attracting new clients for the MFO vertical, it’s important not only to make good creatives but also a quality funnel. Every affiliate has the opportunity to advertise on a landing page or a storefront.

What you need to know when driving traffic to a landing page with an offer:

• Promoting a new product in the market. Thus, when advertising on a landing page, you can focus the user’s attention on a single offer. New products on the market typically feature good conversion rates;
• Working with a narrow audience. This involves specific landing pages for specific categories of people, such as microloans for students or retirees with more advantageous and interesting conditions;
• High conversion. When you drive traffic to a single landing page, it can lead to higher conversion rates than advertising on a storefront: the target audience will not have much choice, and it will not be able to choose another offer.

Pros and Cons of Using a Landing Page

Pros:	Cons:
Higher conversion compared to online storefront offers	Landing page is designed to promote advertising to a specific audience and may thereby limit its reach
Easier to analyze traffic and make changes	You need a constant flow of traffic. In an online storefront, on the contrary, the same person can take advantage of several offers at once
You can easily adapt the content and structure of the landing page for a specific audience

By the way, if you want to know more about landing pages, read our article and find life hacks that will help you get a good landing for nutra offers

Analysis of the Funnel with an Online Storefront: Traffic Flow Path

An online storefront allows the target audience to compare terms and choose the most advantageous option for themselves. Let’s discuss when storefronts are used, their pros and cons, and what they look like.

Breakdown of the Funnel:

• Attracting traffic. In the case of an online storefront, besides Facebook, SEO optimization can also be used. However, it’s important to consider and check search engine rankings for competitors and study the legislation of the country where you intend to promote the site;
• MFO online storefront. Once a user lands on the storefront, they encounter various offers detailing loan terms.

After the user selects the offer they like, they click the “Get Money” button and are redirected to the advertiser’s website, where they fill out a form.

If a user’s loan application is not approved, they have several other options on the online storefront, significantly increasing their chances of acquiring leads.

When is it Better to Use an Online Storefront: Pros and Cons

A storefront, unlike a landing page, serves as a platform where offers from various MFOs are gathered. This allows users to compare loan conditions and select the most suitable option.

What you need to know when driving traffic to a storefront with MFO offers:

• Larger audience. The online storefront attracts users with diverse needs and financial capabilities, making it suitable for broader traffic acquisition;
• Profit from a single customer. Users can compare different offers and select multiple suitable ones without visiting numerous other sites. For affiliates, this means potential profit from multiple offers per customer;
• Loyalty. Offering users a choice rather than a single offer increases trust and loyalty to the platform. This can lead users to return for future loan needs.

Table: Pros and Cons of Traffic Acquisition on a Landing Page

Pros:	Cons:
There is an opportunity to reach a broad audience with traffic	Reduced conversion rates are possible due to the variety of offers potentially complicating decision-making, leading to a drop in conversion rates
For the user, several offers are presented at once: there’s a chance that something will resonate with them, leading them to submit an application	It’s more challenging to analyze the traffic
Offering a choice between offers increases user trust in the platform. Once a user obtains a loan on your website, they may return again	The website itself with its storefront should be well-designed and user-friendly

Conclusion

So what should you ultimately drive traffic to? It all depends on budgets and the availability of offers, but the most common option currently is an online storefront. It can be used both for monetization purposes and generally for driving traffic to it.