The sales funnel is a great instrument to visualize your marketing objectives. As far as your objectives are subordinated to the business goals, you’ll observe that improving the funnel’s key metrics will guide you towards achieving outstanding results.
Each stage of the funnel represents a target for each type of campaign that your department runs. In this article, I’ll explain how to improve the key metrics at each stage of your sales funnel to achieve your S.M.A.R.T. objectives.
First of all, DON’T read this post if you haven’t established yet your marketing objectives. Without a QUANTITATIVE analysis of your website’s performance, you cannot start optimizing because you don’t know what you need to optimize.
3 Ways to design your sales funnel
1. AIDA Model
This way to design your funnel helps you see what marketing tactics you have to use to make your website’s visitors:
– stay on your site
– return to your site
– buy your products
– talk about your brand and products
You will be able to determine WHAT you need to do to make people:
– Aware of your products
– Interested in purchasing your product
– Desire your products
– Act and purchase your products
Depending on any of these four stages, you will use traffic generation tactics, conversion rate optimization and other marketing tactics, according to your marketing budget.
2. Enhanced Ecommerce
Simo Ahava, Senior Data Advocate at Reaktor, shows how Enhanced Ecommerce respects the two roles of a funnel:
a. It allows you to focus on general trends at the a first look
b. it provides insights if you zoom in on an individual segment or product.
3. Funnel orientated on metrics
Our CEO, Valentin Radu, kept several presentations on performance marketing, marketing strategy and website optimization. Valentin showed in one of the presentations how you can adapt your sales funnel approach to achieve your marketing objectives.
First of all, you need to look at pages and their value or potential for improvement. Establish the flow that your visitors need to make like in this example:
Secondly, you need to know what to measure.
The key metrics that you’ll monitor will help you visualize how you do against your objectives. Given the fact that objectives are just abstract concepts, they need metrics to help you transform them into reality.
Once you set up the funnel, you need to start tracking the metrics that measure your marketing efforts. For instance, if you see that you don’t have enough email subscribers, you’ll need to do something about it. To eliminate the leakage in this phase, you need to start testing some ideas for improvement.
1. Visitors to window shoppers
Key metric: Click-through Rate (CTR) on search, category pages, and product pages
Increasing CTR on Search – as shown in a previous article on our blog, visitors who use the site’s search convert better than those who don’t use any search option. This insight from Google Analytics should encourage you to test how visitors react to changes in copy or design.
Increasing CTR on Category and Product Pages – most of the time, people who have the intention to purchase are using the search options. If your website don’t encourage them to do so, you’ll lose some conversions on the way. We tested an interesting tactic on one of our customers’ website: displayed a pop-up with size filters on each important category page of an online fashion store. The results were amazing: + 28% Revenue Per Visitor.
2. Window Shoppers to Subscribers
Key metric: Subscription Rate
You can increase the subscription rate with a pop-up system. People love gifts and the first impression always matters. There is no sacrifice if you offer them something in return of their email address.
3. Subscribers to Shoppers
Key metric: Add to cart rate (CTR of the Add to Cart button)
You can increase this rate in two ways:
- A/B testing on the product page – you can test images, buttons, descriptions and so on. It’s a long-term process, but in many cases an A/B test on the button can make you happy and confident enough to continue the testing process. Here’s an example: one of our customers tested a button and saw an increase in revenue by 1.68%. They didn’t stop testing by now. 🙂
- Pop up on the product page – pop ups are annoying only if you let them bother your website’s visitors. Which Test Won’s Jury was surprised to see how many benefits can pop-ups offer to the marketers. MeliMelo used such a pop up on the product page and managed to increase the Add to Cart rate by 61.6%.
4. Shoppers to Buyers
Key metric: Abandonment Rate
From the optimization side, the most effective solution is using an exit system that offers the visitors another reason to stay on the site. You can either use a survey that asks them why they leave the site or a pop-up that give them a discount. No matter what you choose, you need to do something to stop them leaving without keeping your brand name in their mind.
Here’s a complete article about how to lower your cart abandonment rate that includes a case study too.
5. Buyers to Repetitive Buyers
Key metrics: Customer Lifetime Value – LTV, Repeat Purhcase Rtae -RPR
As your sales and your company growing, you’ll start focusing on retaining your customers. There are many ways to make your customers loyal. One of them is using their names in welcome pop-ups. Other tactics involve more efforts such as surveying the most valuable customers, find out who is their favorite singer or VIP star and then create integrated marketing campaigns. The palette of ideas is limitless.
6. Repetitive Buyers to Raving Fans
Key metric: Net Promoter Score
The Net Promoter Score is showing the likelihood that your customers will recommend you to others. The most simple way to measure this metric is to do regular NPS survey campaigns on your website. I have discussed how to concentrate the marketing efforts on NPS and what kind of campaigns you can make in this article.
Finally, I hope that you have filled your agenda with ideas or at least I gave you the inspiration for your optimization plan for the next of the year. Work with the funnel metrics and start with something that doesn’t require too many efforts (time and money). I suggest starting with the Cart Abandonment Rate because as you’ll see more people buying from your site you’ll start gaining trust and continue the optimization efforts more easily.
To your success!