In managing your online business, designing your sales funnel is important for getting to know your site visitors and planning how to turn them into loyal paying customers. It involves different stages and points of engagement until you can finally close a deal.
For a better understanding of your sales funnel, there are particular metrics you should use for effective analytics. Here are four of them.
Measure the Volume of Your Sales Funnel
The first thing you need to look at is the volume or the number of website visitors that enter the sales funnel. It’s best to examine each stage of the funnel until your leads reach the end. The process looks like this:
Traffic
When you measure website traffic, you get to see how your marketing efforts work at the initial stage. It shows how many people click on your website through search engine results or links from social media.
Return Traffic
A vast number of people do not come back after their first visit to your website. For instance, they didn’t get what they were looking for in their first visit, or they felt like your website wasn’t informative, professional, or valuable enough. Measuring return traffic will show you the percentage of those who remain interested.
Leads
These are the people interested in checking out your product or service or someone who is highly likely to become a customer. They can either be: Sales Qualified Leads or people who want to buy soon, and Sales Opportunities or people who your sales team needs to convince more.
Won Deals
Finally, look a the closed sales. If you had a high number of leads and opportunities but a low number of sales, there’s something wrong in the latter part of your sales funnel.
Identify Your Conversion Rates
You can make sense of most of your metrics by looking at your conversion rates. Here, you can monitor the conversion rate of visitors into leads, leads into sales opportunities, and sales opportunities to actual sales.
Find the Value of Your Sales Funnel by Every Source
The revenue you generate is one of the most vital metrics you should measure, but you must include factors in the return on investment. So you can handle it better, it is more important to divide it into segments for a more accurate view.
Cost per Lead
This is measured by dividing the budget for your leads by how many leads you acquired.
Cost per Opportunity
This formula gives you the ROI value of your sales and marketing efforts. This formula includes dividing the budget for your marketing efforts by the number of opportunities you acquired.
Cost per Sale
This formula gives you an accurate number of how much it would cost for you to generate income.
Determine the Duration of Your Sales Funnel
Finally, you should identify the overall duration from the start to the end of your sales funnel. It represents the average length of the sales process, including every step that entails changing a prospect to a buyer. The overall goal is to shorten the duration of the sales funnel, which will make your sales process more efficient.
Final Thoughts
Understanding sales funnels can help you improve your sales and marketing functions, saving your business time, funds, and resources in the long run. If you need support in these activities, you can work with a digital marketing services provider.
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