An Internet Marketers Dictionary for Sales Funnel Metrics
Getting caught up in the Metrics and numbers propaganda is not uncommon for a marketer or a business owner. Everyday we are get a barrage of hype about them coming in from every angle. Knowing your numbers is crucial in any marketing business; however it can be pretty overwhelming with the influx of metrics you see everyday. In response to this, here is a list of the common metrics you may encounter in your traffic dashboards.
Bounce Rate (BR)
Using the BR, you can see what the percentage of visitors is that are leaving your website without exploring it. Although this isn’t a common metric in sales funnels, it is valuable to track this metric when working online.
The lower the BR, the better, since this means people are spending more time on your website.
The percentage rate that customers stop subscribing to a product/service is called the churn rate. If you have a membership site which charges a monthly plan this is a key metric. The lower the rate for this metric the better since it means customers are sticking around longer.
Click through rate (CTR)
Out of everyone you advertisement has reached, the CTR is the percentage of those who clicked through to your ad. This metric is predominantly used on ad platforms.
Unique click through rate (uCTR)
This is the same as your CTR, with the difference being that it only counts unique clicks. It tracks clicks made from different people, unlike the CTR, which tracks clicks even if they’re not unique. Again, this metric is also used on ad platforms.
Cost per click (CPC)
This is an extremely popular metric that shows you the cost of each individual click on your ad. Instead of paying for your ad when a certain number of people are reached, you’re paying only when your ad is clicked on. This metric is usually seen on ad platforms.
Cost per website click
This is what the cost is each time someone clicks to your website link. Usually there are different types of clicks on an ad, but the main goal is to get a website click so that traffic is driven to your page. This is often used on ad platforms such as Facebook.
Conversion Rate (CVR)
This is a common metric which figures out the percentage of people sold from either a certain page or a sales funnel.
This metric is usually found on order form pages where there is the action of paying for a product/service.
Contacts conversion rate (CCR)
Number of generated leads divided by the number of unique visitors to your page gives you the CCR. You’ll easily be able to track how each of your pages is converting as this metric is in every funnel step.
Cost per customer acquisition (CPA)
The cost of getting a new customer into your sales funnel is the CPA. Its important to know your CPA value when you build your sales funnel because it’s going to cost you every time you bring a new customer to your business to market to them.
How often your advertisement is being shown to your target audience is referred to as frequency. Depending on how frequently your ad is being shown it may come off as either annoying, or help people to remember you. Frequency is also used on ad platforms.
Similar to frequency, “people reached” shows you how many people your ad has being shown to (not how many times it’s been shown). Also used on ad platforms.
Dollars or cost per lead (DPL/CPL)
Your average generated revenue per lead from your entire sales funnel is your DPL/CPL. By showing you these numbers you can use your close rates and conversion percentages to calculate the worth of a new lead.
You’ll also be able to see if you start getting leads for less than what your dollar per lead is; you can make a profit! You can find this metric when you look at your acquisition to sale on your sales funnel.
Earnings per click (EPC)
When you divide your total revenue by your total clicks you get your EPC. Because some advertisers include refunds while other do not, your EPC may be skewed so you must remember to keep these things in mind.
You EPC reflect how to convert clicks to conversions sire wide based on all traffic sent to the page. Affiliate marketing uses this metric the most; affiliates can calculate if its worth is to promote an offer based on revenue potential if they send it traffic.
Lifetime customer value (LCV)
After a customer has been through your funnel to the end, you can see their average value. This includes everything from up-sells, down-sells, and any types of payments. You can use this metric to get an estimate of the gross revenue gained from your continued relationship with the customer. This is an extremely important metric to show the value of possible customers, however it is tough measure in a new business that’s just starting to provide a new service/product.
Rate of return visitors (ROR)
This is the percentage of the customers that continually return to your site to view and participate in your content. You can gain insight into ways to improve your content and what to provide to keep people coming back by knowing your ROR. This metric is commonly used in blogs to give an estimate of how many keep returning and have become customers/leads. You can see this by comparing to your total amount of leads.
This is the number that shows you if your ad is relevant to your target audience.
There is no exact formula to advertisers on how to decide this score, but generally a higher score the better will perform on other metrics.
Click through rate (CTR)
Similar to CTR mentioned earlier, except this is referring to the percentage of people who clicked a link in an email you sent. This is a valuable metric to gauge how active your mailing list is in accepting offers.
You send emails to the people on your list, your open rate is the percent of those who open them. Out of the total you’ve sent emails to, your auto-responder will inform you as to how many of them opened the email. You can tell how engaging your emails are by your open rate.
Show up rate
The amount of people who tune in to your webinar is divided by the amount that opted in to your webinar, to get you the show up rate percentage. You’ll have more people to sell to during the webinar the higher your show up rate is; this will affect how many you can end up closing.
Cost per webinar registration (CPR)
This is the same as your cost for lead. Since there’s more commitment for signing up to a webinar, there will usually be a higher number. You use this number for live as well as evergreen webinars. The CPR is an important metric when reviewing your funnel.
Cost per attendee
You will divide the number of attendees to your webinar by how much the ad campaign cost you, to get the CPA metric. This way you can see how much each attendee cost you. Using this, you can target to grow by improving your webinars follow up sequence.
So, you’ve now got a good idea about the different metrics used in sales funnels. Now, go forth and use these metrics to your advantage, and start growing your sales funnel!
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