In any marketing and sales campaign, there are key points where your visitor becomes your customer. Understanding the metrics (i.e. the numbers) behind your campaign means you’ll know what adjustments need to be made to grow and scale your business. It’s time to prepare for blastoff, starting with your conversions…
Converting With A Basic Funnel
In a basic funnel, there are at least 3 key points of conversion.
Point 1: When someone clicks on your ad to your landing page (this expresses interest in what you have to offer)
Point 2: When someone visits your landing page and opts in (this shows intent to consume or be a part of your offer)
Point 3: When someone visits your sales page and buys (Congratulations! You’ve found a customer who aligned with your ad and offer.)
Tracking each point from when a person enters your funnel to when they exit (purchase) will give you visibility on the higher converting parts of your funnel as well as the areas for funnel improvements.
Let’s move a bit deeper into what these numbers mean to your business profit and loss.
How you get visitors to your site can come in many forms both online and offline. In both cases, it is important to be able to track which traffic sources are the most successful.
Ways to track include coupon code redemptions, opt-in offers, or phone call tracking. The ability to able to track your visitors from the very beginning allows you to calculate your CPL (Cost Per Lead) and CPC (Cost Per Conversion).
Hang tight, I won’t go into alphabet soup. Check out the chart below.
Here’s a quick chart on the math behind the conversion:
Lead Cost Analysis
How much is traffic costing you to come to your site?
Let’s take a look at an example. Below are the numbers for a fictitious company called ConvertED. They sell two digital products online (@ $37 and $197). The owner fills in their ad spend ($1,500) and the number of people who clicked on their ad (1,000) during the month of January.
For this ad campaign, they know their historical conversion rates (opt in – 36%; sales – 9% and OTO – 5%). With just those pieces of information they are able to calculate their earnings across their funnel (see image below) and they’re $79 profitable.
Great, they profited from this campaign but not by much. Over the course of the next two months, they decided to boost their sales and test changing one variable in their campaign at a time check out their results.
Here are some of the insights you can use from their results.
Test 1: Increase Ad Spend
Bump up the Benjamins and add more funds into your paid campaigns or joint venture with a well-known influencer.
Test 2: Increase Traffic
Expand your target audience or target indirect competitors.
Test 3: Get More Opt-ins
Change your landing page to speak more directly to your ideal customer including video and pictures to help them visualize what you’re offering.
Test 4: Sales Rate Increase
So What Did They Learn?
When all the testing was said and done, ConvertED learned that adding more money to their campaign doesn’t achieve their goal of wanting to make more sales. It may actually make things worse. Their most profitable bet is to increase the amount of traffic they’re sending to their offer.
What changes can you make in your campaigns and funnels today that will give you the rocket fuel to blastoff your sales?
Want your own tracker? Download it here (no opt in required, you’re welcome).
About Claudia Pilgrim
Claudia is a former business analytics consultant who has spent the last three years studying online marketing and has now released her new superpower to the world. Specializing in the mash-up of science and art, 925 MARKETING MIXOLOGY is proud to spearhead the industry in compelling marketing and measurable results. Interested in working with Claudia? Contact her here: firstname.lastname@example.org
From the capital of politics, parties and persuasion…Washington, DC, Claudia “Ms. Copywriter” Pilgrim, @MsCopywriter, provides launch and webinar copy for established Infopublishers and Software as a Service (SaaS) founders. She is a conversion focused copywriter and data analysis expert, a featured columnist on marketing metrics for Funnel Magazine, a former Associate Director of Online Marketing for Save The Water, and a mommy keeping up with her kids’ social lives. Her momentum is kept by family, great food and tons of laughter, oh, and enjoying a glass of Cabernet Sauvignon. Apply for your next launch consultation today: www.mscopywriter.com/apply