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 - Useproof.com, 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.