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Funnel Optimization - TribeTalk EP 31

Last Updated April 27, 2021


Funnel Optimization 

The best ads in the world can’t overcome a poor funnel. To get the most out of your paid ad spend, remember to analyze your funnel performance. 

Even if you don’t think you have a funnel, you have a funnel. Basically, if someone lands on your site, fills out a contact form, has a call with you, you send a quote, then they sign it - that’s your funnel. What’s your conversion rate at each step?

Example: An Ecomm business

100 LPV (Landing Page Views) > 25 ATC (Adds To Cart) > 12 IC (Initiate Checkouts) > 6 Purchases 

Divide your final result (6 purchases) by your first event (100 landing page views) to find your overall Conversion Rate. In this case, 6%.

If you’re a lead-gen business the average is about 2% conversion rate (but it can depend on the specific industry). 

How To Analyze and Track Your Funnel

  • Create a Google spreadsheet and track key metrics (basically how many people did the action and then the percentage that converted to next action) over time
    • You could also view this data in your analytics platform (Google Analytics, Facebook Analytics)
    • Make sure to checkout your overall performance, as well as performance from marketing campaigns
    • Where is the biggest room for improvement? (Usually there are conversion baseline metrics in your industry you can measure these against)
    • Start testing changes, focusing on the biggest potential to move the needle (test weekly or monthly depending on how much traffic you have)
    • Measure your test against your original numbers - did it improve? 
      Yes? Great! Move to the next biggest opportunity (it might be the same thing again) No? Try again with a new experiment.
    • Keep working on it. Optimization is never done. 

Some Example Experiments To Run

  • Improving site speed and load times
  • Landing pages design, layout, headlines, imagery
  • Offers (bundles, discounts)
  • Number of pages/steps in a funnel
  • Social proof -, testimonials, as seen in
  • Deadlines, scarcity, etc.
  • Messaging 
  • Risk mitigation - guarantees, free returns, # of happy reviews
  • Bonuses - additional product, free shipping, etc.

You can get a higher return on ad spend if you keep evolving your funnel as you keep sending paid traffic through it. 

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