Conversion Funnel Optimization: Systems Theory and Circuit Models

Revolutionize conversion funnel optimization by applying Systems Theory. Model leads as current and stabilize CAC with negative feedback.

Published on Jan 16, 2026
Updated on Jan 16, 2026
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In Brief (TL;DR)

Funnel optimization requires a shift from creative intuition to engineering determinism, applying Systems Theory to sales processes.

The model likens marketing to an electrical circuit, mapping budget and friction as voltage and resistance to calculate predictable performance.

The use of PID controllers and feedback loops stabilizes acquisition cost, preventing operational saturation and ensuring sustainable scalability.

The devil is in the details. 👇 Keep reading to discover the critical steps and practical tips to avoid mistakes.

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In the digital marketing landscape of 2026, the empirical approach based on "trial and error" is no longer sufficient to compete in saturated markets like mortgages. **Conversion funnel optimization** requires a radical paradigm shift: moving from creative intuition to engineering determinism. In this technical treatise, we will explore how to apply **Systems Theory** and circuit analysis to model the sales process of MutuiperlaCasa.com, transforming uncertain variables into controllable constants.

Diagram comparing a sales funnel to an electrical circuit with resistors and data flows
Ohm’s Law applied to marketing: transforming the funnel into a controllable engineering system.

1. The Funnel as an Electrical Circuit: Mapping Variables

To apply electronics principles to marketing, we must first establish an isomorphism between physical quantities and business metrics. This is not a simple metaphor, but a mathematical basis for performance calculation.

Ohm’s Law Applied to Marketing (V = R * I)

Consider the fundamental law of electrical engineering: V = R * I. In our conversion funnel optimization model, the variables are mapped as follows:

  • Voltage (V) – Advertising Pressure: Represents the invested budget and the "force" of platforms (Google Ads, Meta) pushing leads into the system. It is the potential that generates the flow.
  • Current (I) – Lead Flow: The number of users passing through the system per unit of time. The goal is to maximize I while keeping V sustainable.
  • Resistance (R) – Qualification Friction: Every field in a form, every credit check, every document verification step acts as a resistor. The higher the resistance (rigorous qualification), the lower the current (leads), assuming constant voltage (budget).

This mathematical relationship immediately tells us a fundamental truth: if we increase **Resistance** (to get more qualified mortgage leads), we must necessarily increase **Voltage** (ad spend) to maintain constant **Current** (sales volume).

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2. Node Analysis and System Impedance

Conversion Funnel Optimization: Systems Theory and Circuit Models - Summary Infographic
Summary infographic of the article "Conversion Funnel Optimization: Systems Theory and Circuit Models"
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A mortgage funnel is not a simple series circuit; it is a complex network. Different traffic sources (SEO, PPC, Email) act as parallel branches.

Calculating Equivalent Impedance

For proper **conversion funnel optimization**, we must calculate the total impedance of the system. If we have two landing pages (A and B) working in parallel:

1/R_total = 1/R_landingA + 1/R_landingB

This model allows us to understand mathematically that adding alternative paths (parallel branches) reduces the overall system resistance, increasing lead flow without necessarily increasing the budget (Voltage). Conversely, adding verification steps in sequence (series circuit) increases total resistance additively.

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3. Stabilizing CAC via Negative Feedback Loop

Technical chart comparing the marketing funnel to an electrical circuit
Electrical circuit theory redefines conversion strategies in the mortgage industry.
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The Holy Grail of systems engineering is stability. In marketing, instability manifests as the oscillation of CAC (Customer Acquisition Cost). To prevent this, we implement a **negative feedback** loop.

The PID Controller in Bidding

In a feedback system, the output (Actual Cost per Lead) is compared to a setpoint (Target CPA). The error is processed by a PID (Proportional-Integral-Derivative) controller that acts on the input (CPC Bid).

  • Proportional Action: If CAC rises, the bid drops immediately.
  • Integral Action: Corrects error accumulated over time (e.g., if CAC remains slightly high for days).
  • Derivative Action: Predicts future trends. If CAC is rising rapidly (even if still under target), the system "brakes" preventively.

This approach eliminates the emotional oscillations of human media buyers, ensuring a flat and predictable CAC.

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4. The Transfer Function and Frequency Response

Every dynamic system has a **Transfer Function H(s)**, which describes how the system responds to stimuli in the frequency domain. In the mortgage sector, this is crucial for managing seasonality.

Analyzing Seasonal Bottlenecks

We can model the sales department not as a pure resistance, but as a **capacitor** that takes time to charge (handle the file) and discharge (close the mortgage). Applying a step signal (e.g., a sudden promotional campaign), the system does not respond instantaneously.

Analyzing the **Bode Plot** of our funnel, we can identify the cutoff frequency. If the frequency of marketing campaigns exceeds the back-office response capacity (the system bandwidth), the system goes into saturation. Instead of generating sales, only heat is generated (lost leads, angry customers).

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5. Infrastructural Requirements for Modeling

To implement this level of **conversion funnel optimization**, the technical infrastructure must be flawless. We are not just talking about marketing, but high-fidelity data management.

Data Logging and Communication

The control system requires real-time data. It is essential to integrate:

  • Advanced VoIP Systems: **VoIP** integration with the CRM is fundamental to measure "service time" (call duration) which feeds the sales department resistance calculation. Without precise voice data, the model is blind.
  • Redundant Data Backup: Loss of historical data compromises the Integral action of the PID controller. Strict **data backup** procedures (both cloud and local physical media for critical redundancy) are mandatory to maintain system memory.
  • Edge Computing Hardware: For fast local processing of system logs, using high-speed memory media like industrial **micro SD** cards in office monitoring IoT devices can reduce latency in transmitting call center environmental data.

6. Practical Optimization Algorithm

To apply what has been learned to MutuiperlaCasa.com, follow this operational algorithm:

  1. Parameter Identification: Calculate the average Resistance of each funnel step (R = V/I, where V is the spend for that step and I are the exiting users).
  2. Circuit Modeling: Draw the equivalent electrical schematic. Identify where resistances are in series (bottlenecks) and where they can be parallelized.
  3. PID Tuning: Set the feedback loop on advertising platforms. Start with a low proportional gain to avoid violent oscillations.
  4. Stress Test: Simulate a Voltage (Budget) increase of 50% and observe if Current (Leads) increases linearly or if the system goes into saturation (indicating operational limits, not marketing ones, but process ones).

Conclusions

disegno di un ragazzo seduto a gambe incrociate con un laptop sulle gambe che trae le conclusioni di tutto quello che si è scritto finora

**Conversion funnel optimization** via Systems Theory is not an academic exercise, but a necessity to scale predictably. By treating leads like electrons and budget like potential energy, we can design sales machines that not only perform but self-correct, guaranteeing MutuiperlaCasa.com an unassailable competitive advantage based on physics, not luck.

Frequently Asked Questions

disegno di un ragazzo seduto con nuvolette di testo con dentro la parola FAQ
How does Ohm’s law apply to the conversion funnel?

Ohm’s law serves as a mathematical model where Voltage equals advertising pressure, Current equals lead flow, and Resistance equals qualification friction. To maintain constant sales volume while increasing quality controls, this principle dictates that the invested budget must be increased proportionally.

What does it mean to use a PID controller in marketing?

A PID controller is a feedback system that stabilizes the Customer Acquisition Cost by eliminating human emotional oscillations. The system automatically adjusts the CPC bid value based on the deviation from the target, ensuring predictable performance through proportional, integral, and derivative actions.

Why prefer parallel circuits in sales strategy?

Configuring traffic sources as parallel branches reduces the total system resistance, allowing for a greater flow of leads without raising spending. Conversely, adding too many sequential steps increases overall difficulty and reduces the number of users completing the path.

How to avoid back-office saturation during seasonal peaks?

Through frequency response analysis, the sales department’s capacity is modeled as a capacitor that needs time to handle files. This allows identifying the limit beyond which the system cannot process contacts, avoiding budget waste on leads that would be lost.

What technologies are needed for circuit modeling in marketing?

A high-fidelity data infrastructure is required, including VoIP systems integrated with the CRM to track handling times and redundant backups for data history. Additionally, edge computing devices help process local logs quickly to feed real-time control algorithms.

Francesco Zinghinì

Electronic Engineer expert in Fintech systems. Founder of MutuiperlaCasa.com and developer of CRM systems for credit management. On TuttoSemplice, he applies his technical experience to analyze financial markets, mortgages, and insurance, helping users find optimal solutions with mathematical transparency.

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