We all love to think our marketing funnels are broken because of the usual suspects like:
And while these things can be important, they’re not the real reasons.
The uncomfortable truth is this:
Most funnels fail for more subtle psychological reasons. The kind you don’t spot on your Google Analytics dashboard but ones that your prospects feel the moment they enter.
So, let’s dig into the psychology behind why people drop out and how you can stop building Swiss-cheese funnels. 🧀
Financial businesses are notorious for throwing too much at people at once.
Acronyms. Charts. Disclaimers longer than the sales page.
When people feel overloaded, they shut down. It’s not because they don’t understand, but because their brain is conserving energy. Decision-making is costly and when your funnel feels like a tax return, prospects will escape at the nearest exit.
How to fix it? Strip it back. One message per page. One action per step.
Many finance companies confuse authority with trust. They pile on badges, awards and of course, that compliance boilerplate.
But prospects aren’t asking: Are you regulated? They’re asking:
Are you on my side?
Trust is emotional before it is rational. A testimonial about how “the API reduced settlement time by 13%” builds authority. But a story about how you helped a CEO sleep better at night builds trust.
How to fix it? Replace “we’re experts” with “we get you”. Show you understand the person behind the job title.
People don’t buy because of logic. Well, at least not at first. They buy because it feels like a fit for who they are. Or who they want to be.
This is why so many fintech campaigns flop: they speak to the product, not the persona. A risk manager doesn’t just want to be known for “reporting efficiency”. They want to be the one who saves the bank from a reputational disaster.
A founder doesn’t just want “capital optimisation”. They want to look like the genius who spotted the gap before anyone else.
How to fix it? Reframe benefits around identity. Position your funnel as the path to becoming the kind of person your prospect aspires to be.
Funnels often front-load persuasion and then get lazy. The final step – the form, the call booking, the sign up… often feels transactional and cold.
That’s like having a great first date and then ending the night with:
“So, shall we sign this?”
Psychologically, people want consistency. If your funnel has been warm, human and engaging, don’t suddenly turn into a compliance robot at the finish line.
How to fix it? Make the last mile feel like the rest of the journey. Keep the tone, warmth and reassurance right up to the final click.
Every funnel leaks energy. The longer it takes, the more people fall out. It’s not that they’ve decided against you – they just got distracted.
This is called the “intention-action gap”. People genuinely mean to come back. But then life intervenes.
By tomorrow, your funnel tab is lost between “holiday deals” and “should I worry about this cough?”
How to fix it? Build in nudges that reignite momentum. A short, well-timed follow up email isn’t nagging. It’s psychological scaffolding that gets people back on track.
Look, funnels don’t completely collapse because your copy is bad or your CTA button isn’t orange. They fail because of deeper psychological friction: overload, mistrust, identity mismatch, cold endings and lost momentum.
If you fix those, you’re not just optimising your funnel – you’re removing excuses for people NOT to say YES!
Speak soon,
Leave a comment
Your email address will not be published.