By: Cortland J. Fondon
Nothing is more important than measuring the success of your inbound marketing. Many companies just aren’t sure what metrics are the most important and don’t differentiate between the different stages in their sales funnel. Inaccurate measurements can waste a lot of time and money on tactics that aren’t actually working the way you might think they are.
Understanding the Funnel
You probably know what a sales funnel is and how to use it for your marketing strategies and sales team goals, but you might not be as familiar with how it should differ when it comes down to analyzing your website metrics.
Top-Funnel Metrics – Drawing in new leads is important when you are looking at how the very top of the funnel is performing. Metrics here should be used to ensure lowered bounce rates and an effective marketing message is drawing in new visitors as well as retaining them. Top-funnel metrics should be focused on understanding how leads are finding your brand, whether through search engines or as direct traffic.
Mid-Funnel Metrics – Once your viewers are on your page and poking around, your metrics will focus on keeping them engaged and educating them. At this point, you should be interested in how much you are spending to bring in new prospects and what advertising has been effective for new leads who are sticking around.
Bottom-Funnel Metrics – Here is where this article is focused, that point right before conversion. Here you will want to focus on how successful your attempts at gaining new leads has been and how much you are spending to bring in the serious prospects that become leads.
Choosing the Metrics
For the bottom-funnel analytics, there are five important metrics we suggest you consider:
By the time prospects have made it to the bottom of the funnel, they are true leads for your company. It is important to know how many have gotten to this point and how many have been lost along the way. This can help you understand what advertising wasn’t as effective (bringing in weak prospects) as well as where your funnel might have bottleneck points where prospects are loosing interest for one reason or another. You can measure these leads by driving prospects to a CTA to fill out your web forms and consider the gathered contact information a mark of success.
Cost per Sold
Knowing how much you are spending to close the deal is also helpful in understanding the true value of your marketing attempts. Divide your ad costs by your web conversion numbers to get a feel for how much you are spending for each fully-convinced lead.
Are you advertising for this point of your funnel? You should be. This is where you measure how many leads come in at the bottom of the funnel, comparing your numbers to those coming in through the top. This will give you a better breadth of sales – working to appeal to those who are just barely interested all the way down to those seeking a very specific solution to a problem they have.
Cost per Lead
Know what you are spending to bring in your total leads by dividing your lower-funnel ad costs by your total number of leads. This will allow you to determine the effectiveness of advertising attempts for bottom-level prospects.
Bottom-funnel advertising should directly effect the growth of sales. By measuring revenue contribution, you can understand what total closed sales opportunities are brought about by specific marketing attempts.