When it comes to any funnel marketing, knowing your numbers is very important.
However, when it comes to paid funnels (using online advertising to generate traffic) metrics and knowing your numbers is of critical importance.
You need to know how much money you are putting in your machine (sales funnel) and how much money your funnel is giving you back.
Your quantitative analysis will give you some vital information:
- How well your funnel is performing.
- How much money you are making (revenue/profits).
- How can you improve the efficiency of your efforts (making more money from the same amount spent).
- How can you scale your funnel (how much can you increase the volume of traffic to your funnel).
From a very high level, when you look at the paid acquisition funnels, there are two main metrics that you continuously need to be aware of:
- Cost per visitor (CPV or usually Cost Per Click)
- Revenue per visitor
These are essentially telling you
- How much money are you paying to get one visitor.
- How much money are you making per each visitor.
- Where you should focus your attention.
Cost per visitor is a showcase of the effectiveness of your advertising.
There are two things that you can do to improve this section
- Decrease cost to get each visitor
- Depending on the ad network, this will usually mean increasing your Click-through rate (percentage of people clicking on your ad).
- Increase the quality of those visitors
- Focus actions on improving the visitors that you are getting on your funnel so that they are more likely to buy.
- You can do this through targeting, bidding, and ad creatives.
Let’s take for example a straightforward webinar funnel:
When you break down the webinar funnel you usually have four important metrics:
- Registration rate
- Show up rate
- Webinar Conversion rate
Registration rate - or landing page conversion rate.
This is the number of people that become leads (or webinar registrants). They have qualified themselves as interested in your offer. Your landing page and type of traffic is what is going to make your registration rate.
Usual industry standards are that anything above 20% is good. With 20% CVR, you can have great ROI funnels.
Show up rate - the percentage of registrants who actually show up on the webinar.
These are people who are even more interested in your offers. There is a big difference in show up rates depending on whether you are using a Live or Automated webinar.
Live webinars benchmarks are 30%+
The automated webinar is 60%+
Webinar conversion rate - the percentage of attendees that convert to paying customers.
This is the number that is telling you the effectiveness of your webinar presentation. How engaging is it, how much hype does it create, does it make a really irresistible offer?
The usual industry standard is that anything above 3-5% is good.
AOV - average revenue from one paying customer.
This could vary depending on your price points and payment plans. If you only have one payment option, you will be generating steady AOV, but probably going to be leaving money on the table.
FAQ about metrics and numbers in funnels
When to start thinking about the numbers?
Actually, to get maximum success, you will need to map out those numbers BEFORE you run any ads or traffic to your funnel.
You can make a prediction and map out what numbers you need to hit to break even, what numbers you need to hit to be profitable or 2-3x your ad spent (here’s a great tool for mapping out your numbers in webinar funnels.
What do those numbers mean?
When you have a prediction and an exact mathematical formula of what you need to achieve to make your funnel profitable - you know exactly where to focus your attention to improve.
If you improve only one of those metrics, you will improve your ROI (Return on Investment). However, if you improve 2 or 3 of those metrics, you will exponentially improve your ROI.
How do I go about optimizing those metrics?
CPV - This depends on ad platform you use.
Registration rate -
- Traffic - maybe your traffic is misled by your ad, and there is a mismatch in expectations between ad and the landing page.
- Landing page optimization - the first thing you want to optimize is your headline and copy as this has the biggest impact on registration rate.
Attendance rate -
1.Webinar viewing time - is it automated or live? (Automated webinars have a much higher attendance rate.)
2.What incentives are you giving them to show up on the webinar?
3.Pre-webinar email sequence. Can you add more content between the registration point and the webinar?
4.Confirmation page video - you can place a video on webinar confirmation page. Use this video to create a deeper relationship with your prospects. Usually, it’s the best to add more value with that video and create more hook and curiosity for people to show up on the webinar
Webinar conversion rate
- Where do people lose interest and drop off?
- How many of them are actually clicking the offer?
- Do you need to change the webinar pitch?
- How many cart abandoners?
- Do you have trust certificates and badges?
- Do you have testimonials?
- Are those testimonials addressing common sales objections?
Started with online advertising and marketing in 2014. Managed over $1,000,000 in ad spend over the duration of his career and generated over $3,000,000 in revenue with paid traffic. Currently works as on paid acquisition at Kettle and Fire and is owner and advisor in his Kangaroo agency which is specialized in Facebook advertising and acquiring customers via paid online traffic.