While talking about digital marketing, you may have come across a useful component that is funnel metrics. But why is it important, what are its uses and what exactly is a funnel metrics? These are simple questions that go around inside the mind of a rookie digital marketer. So let’s begin the journey to explore the world of funnel metrics and we will know about it in detail.
What are the funnel metrics?
Funnel metrics is a term that is used to measure and analyze the funnel. Every business has a funnel, which is known by the name of website conversion. It plays a key role in the development of your website. The goal is to get the maximum number of users on your site whether to download images, read content, buy products or for any means.
Is your website getting a relevant funnel?
Every website has its own specific set of users and the set of demands for the users differs from site to site. At some sites they visit to purchase the product, at some sites they are busy with social networking and for some sites, they look for entertainment sources like movies and videos to be downloaded from.
Now knowing the interest of users is very relevant in website conversion. First, you need to check out if your website is generating funnel through funnel metrics. Then you have to work on generating more funnels for your website. The simple and easy way of doing this is to create links and hyperlinks that would land them down where they want to be. And such a lot of links will generate a huge amount of funnel for your website.
Funnel metrics for e-commerce marketers
If you are in the e-commerce market then funnel metrics can do wonders for your business as funnel metrics will help you to get more and more customers. The availability of these metrics has only one question if you are well aware of the type of metrics and other details. If you know even a little then it will be helpful to boost up your business. So let’s look for some of the metrics types and division of funnel metrics.
Division of funnel metrics
Funnel metrics components are divided into three different categories, top of the funnel metrics, middle of the funnel metrics and the bottom of the funnel metrics. We will analyze which components are categorized in which section of the metrics. To make sure we are doing first things first this classification is necessary. And it will make sure you are on the right track.
Top of the funnel metrics
Prospect behavior ( like bounce rate, average time on website, impressions and website traffic) are measured by the top of the funnel metrics. While optimizing the website and overall surveillance these play a key role. These metrics are of less use when it comes to mid-level decisions and for the bottom level decisions, these become insignificant. So these are used only for the top level decisions in the funnel.
Middle of the funnel metrics
Middle of the funnel metrics dives down into deeper data analysis. These include open volumes, lead rate, lead scores, conversion rates. These metrics show prospect behavior and these help marketers to optimize the lead stage strategies and gauge their performance of efforts to prospects. These metrics can outlive their usefulness as they provide lesser information.
Bottom of the funnel metrics
Funnel metrics near the bottom are most significant because they not only visualize the revenue but also the marketers can use these to analyze the decisions in the whole metrics. By examining the bottom funnel the conversion rates of users can be maximized by analyzing the lead generation rates. Also as a marketer, you can think of ways to improve the conversion rates and improvise the lead generation rates too.
Volume-based metrics
These metrics will be enough to portray the magnitudes but they are insignificant to provide the prospects. They are not concerned with the relationships rather they will focus on the numbers. The numbers can be compared with past and future but it is difficult to jump to a correlation based on the volume based metrics. These metrics are significant when we have to analyze the trends but appear to be useless in the strategic process.
Cost based metrics
These metrics are focused on the financial data figures and help the marketer in the budgeting process. A marketer will be able to know what amount of investment has to be made on which of the campaigns using the cost-based metrics.
Percentage based metrics
These metrics are the most popular marketing metrics as they are pivoted in multiple ways. These metrics are focused on the bottom level metrics and help in the decision process. Rates are usually associated with the percentage metrics and thus these are also called rate metrics. And these metrics are used to compare the volume based metrics.
Algorithm-based metrics
These metrics are used to compare the set of weighted variables and in most cases, they result in a type of score. And depending upon the type of score it will prompt an action to be taken. And as these metrics are prompt to action these play a key role in the decision making processes. These metrics belong to the family of adaptive analytics which is an approach to marketing data which uses a real-time approach to providing marketing intel at any point in time.
Revenue-based metrics
These metrics are used to focus on revenue generation. These are the exclusive bottom of the funnel metrics. And these metrics are close to customer conversions. Also, some top-level funnel metrics are related to revenue-based metrics. And they are focused on revenue generation in general.
Decision-making metrics
These metrics are able to imply specific measurable strategy changes. Most cost-based metrics are types of decision-making metrics as they directly affect the budgeting. Down funnel metrics shedding light on customer conversions and opportunity stage data are the best decision metrics available to the marketers. These metrics provide insights based on the ultimate goal of marketing strategy that is revenue.
Metrics derived by web analytics
Web analytics figures show overall growth over time-based or volume based trends. They only infer the basic level of information. Also, the social media network provides metrics based on the social engagement and social reach of the messaging. Marketing automation can provide a lot of important metrics information mostly in the middle funnel metrics.
Metrics derived by marketing attribution
An advanced marketing attribution is able to derive highly insightful metrics which can be pivoted in multiple ways. The attribution solution directly connects to the CRM. And thus connect the top level funnel metrics (keyword clicks, ad campaigns, blog articles, and webinars) to the bottom level funnel metrics (conversion rate, opportunity conversion, revenue generation and customer closes).
This information is available because an attribution solution collects and compares the net granular data at the touch point level. These metrics have huge implications for decision-making paradigms as upper-funnel changes can be educated by down-funnel results. Marketers can easily identify wasted ad spend, and they can prove their impact on the business’ bottom line.
How to convert the funnel metrics
The major problem that comes with the funnel metrics is conversion of the funnel. The funnel can be converted successfully by four of the following measures.
Awareness
Interest
Desire
Action
Awareness
This part of the funnel metrics strategy includes anything that makes you reach out to the new audience. It could be from a PPC campaign, social media publicity or any other means. The main focus is to make sure that the user gets to know about your brand. You need to develop different campaigns for the different target audience and also on the basis of different leads available to you.
Interest
After you have spread awareness you need to work on the interest of the users. The content and the website design are the best to do so. You need to figure out what the users want to know about your brand and what queries they can have. The difficulty and challenges faced by them and the solution provided by you. Your content is most valuable as it is the one that attracts the users. The content should be original and effective. And the website must be attractive enough to bind the customer for a long time.
Desire
After you get to know the interests of the users you need to focus on their desires. And highlight the problems that you can solve and also give a glimpse of the solution provided by you. Make sure that the users are impressed by your solution and they want it only. Users usually compare the solutions of different companies so at this point refrain from copying solutions of others as it would negatively impact your funnel conversion rates.
Action
The last and ultimate goal is action. It is the result of all the process you followed and all the efforts you have made. They might have been associated with you in some way or other but you want them to buy the product and by improving your content and quality you can make sure that you will prompt them to buy the product offered by you.
The funnel metrics is a major booster for your business as funnel metrics focus on the conversion of lead and helps you with the retention of customers. With funnel metrics, you can ensure that your business is reaching desired users. You can use different types of analysis and thus make a strategic plan for your business growth.