Most founders assume people choose tools based on features or pricing. But what if the real reason your competitor is winning has nothing to do with the product itself. This blog might change the way you look at conversions.
Most founders believe a great product should be enough. If it solves a real problem and works well, people will stick with it. That’s the logic. But real buying decisions aren’t just about what the product does. They’re about how it's presented, how people experience it, and how smooth the path is from first touch to conversion.
Here’s why your competitor might be converting better than you - and it has nothing to do with the actual product.
Why Your Competitor's Funnel Is Winning
They Sell the Next Step, Not the Product
Good funnels don’t sell features. They sell momentum. A prospect doesn’t always know what your product can do or how to use it, but they do know what problem they need to solve. If your messaging focuses too much on the product and not enough on helping them take a small, valuable next step, they’ll hesitate or move on.
Example: Notion doesn’t pitch you on its blocks or integrations on the signup page. Instead, it asks what you’re using it for. Docs, notes, project tracking. Then it shapes the experience around that. This makes people feel like they’re already getting something personalized, even before they fully understand the product.
What to do:
- Guide users into a journey based on their intent
- Use simple questions or prompts to segment
- Create follow-ups based on those inputs
What to avoid:
- Generic product feature lists
- Sending ad traffic to your homepage without a focused flow
They’ve Mapped the Entire Journey
Acquisition is just the first part. What happens after a user signs up? What happens if they don’t come back after day one? A winning funnel anticipates these moments and has steps in place to re-engage or support the user.
Example: HubSpot doesn’t just send a welcome email. It uses onboarding emails, contextual tooltips, and a gradual learning experience to walk users through the tool. It’s layered and adaptive. Even if someone logs in once and disappears, they’ll get reminders, helpful tips, and reasons to come back - all aligned with what they were trying to do initially.
What to do:
- Create an email sequence based on user behavior
- Set up product milestones with nudges
- Add reminders through retargeting or notifications
What to avoid:
- Assuming the product will teach itself
- One-time onboarding flows without follow-ups
They Remove Friction at Every Step
Every extra field, delay, or unclear message is a point of friction. When users hit too many roadblocks, they leave. The better-performing funnel keeps everything smooth - from signup to first value.
Example: Calendly doesn’t ask for a phone number or payment details upfront. Just your email, and you’re inside setting up your first event. That simplicity helps people try the product without commitment, which builds trust fast.
What to do:
- Trim your signup forms
- Remove non-critical fields
- Let people explore before committing
What to avoid:
- Forcing demo calls before showing any value
- Overusing popups or aggressive chat prompts
They Push Value Instead of Waiting for Engagement
Most funnels are passive. Someone signs up, and the company waits. Waits for them to log in again, to try things, to convert. But the best funnels stay active, always pulling users forward.
Example: Loom sends new users a personalized video message within hours of signup. It’s fast, direct, and creates an instant connection. Users feel like the company is paying attention to them, which increases retention.
What to do:
- Send follow-ups with product tips and use cases
- Share short examples of how others are using it
- Keep the momentum going within the first 3 days
What to avoid:
- Radio silence after someone signs up
- Only asking for a demo instead of offering insight
Their Content Fuels the Funnel
Content marketing isn’t about just getting traffic. It’s about helping people move closer to a decision. Educational content that doesn’t link back to your product leaves money on the table.
Example: Intercom’s blog doesn’t stop at tips and insights. It always loops back to a tool or use case that their platform supports. It helps readers connect their problem to Intercom’s solution, without sounding salesy.
What to do:
- End content with a specific offer, checklist, or signup link
- Create resources that match the funnel stage
- Use stories or specific outcomes, not vague ideas
What to avoid:
- Educational content that doesn’t connect to your product
- CTA buttons like Learn More or Read More with no context
They Test Boring Things That Matter
Small changes can lead to big improvements. But many founders get distracted by building new features or changing brand aesthetics when basic funnel issues are still costing conversions.
Example: ConvertKit improved demo bookings by changing the CTA text from Get Started to Show Me How. That tiny shift made it clearer and less intimidating for users, resulting in more clicks.
What to do:
- A/B test headlines, subject lines, button texts
- Measure bounce and conversion rates weekly
- Track first-page load speed and CTA clicks
What to avoid:
- Pushing big redesigns without testing the basics
- Making decisions based on personal preferences only
Their Funnel Is a System, Yours Is Just a Set of Pieces
A strong funnel works as a coordinated system. Every part leads into the next. Ads feed into relevant landing pages. Landing pages feed into segmented email sequences. Emails lead back into specific parts of the product. It’s all connected.
Example: A founder runs paid ads that lead to a page asking a single question: What’s your biggest challenge in [X]? Based on that answer, the user gets a tailored video, follow-up emails, and a product walkthrough.
What to do:
- Use one platform or system to track user flow from ad to conversion
- Automate follow-ups based on actions
- Build a funnel before pushing traffic
What to avoid:
- Managing everything through spreadsheets
- Sending traffic before fixing your user journey
They Prioritize the First Value Moment
The best funnels don’t stop once someone signs up. They focus on getting users to that first success as fast as possible. That moment where they say, Oh, this is helpful. That’s the real conversion.
Example: Canva doesn’t just offer templates. When you sign up, it nudges you to create your first design instantly. No learning curve, no delay. You get the benefit of the product within minutes.
What to do:
- Identify the one action that delivers value quickly
- Design onboarding around getting users there fast
- Follow up to encourage repeating that action
What to avoid:
- Lengthy walkthroughs before doing anything
- Delaying the aha moment behind too many steps
They Focus on Micro-Conversions, Not Just the Big One
It’s not all about signups or purchases. Each click, scroll, or reply tells you something. The strongest funnels track these micro-conversions and optimize based on where people drop off.
Example: Close CRM noticed people who added a contact within 5 minutes of signup were 3 times more likely to upgrade. So they started prompting that action earlier. It made a measurable difference.
What to do:
- Track early actions and correlate with conversions
- Encourage low-commitment steps early on
- Use data to predict churn before it happens
What to avoid:
- Judging success only by final conversions
- Ignoring user behavior data in the first session
Conclusion: It’s Not About the Product
People don’t always choose the best product. They choose the one that’s easiest to try. The one that speaks to their problem right away. The one that leads them through a smooth, confident experience.
Your competitor might not have the better tool. But they might have:
- A smoother signup experience
- Smarter onboarding
- Timely reminders and content
- A system that works even when they’re not watching
It’s not luck. It’s intentional funnel design. And it works.
Start fixing it today. Sign up for three of your competitors’ products. Write down every single step they take. What do they show you? What do they ask? What do they send after you leave?
Then compare that to what you’re doing. The gap will be obvious. And so will your next steps.
