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 - Useproof.com, testimonials, as seen in
Deadlines, scarcity, etc.
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.