Step 6: Post-service
Posted: Sun Dec 22, 2024 6:55 am
There are several metrics that can help you evaluate your sales funnel:
NPS
NPS (Net Promoter Score) helps to evaluate customer loyalty to a product. This type of metric is based on customer responses to the question: “Would you recommend us to a friend?” The responses are assessed in points, and NPS is measured in percentages.
Calculation method:
(Number of Promoters - Number of Critics) / Total Number of Respondents * 100%.
Promoters rate the product 9-10 points, while critics rate it no higher than 6.
To evaluate NPS, it is necessary to systematically conduct audience surveys and identify product weaknesses based on feedback from critics.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
LTV
LTV (Lifetime Value) reflects how much profit a company receives over the entire period of cooperation with a specific consumer. One of the important criteria in marketing, which helps determine the client's interest in the company's products.
Calculation method:
Average cost of sales * Average number of sales per month * Customer retention period in months.
LTV can be increased by increasing the average check, as well as by increasing customer loyalty through products and loyalty programs.
ARPU
ARPU (Average Revenue Per User) can be compared vietnam telegram with the cost per customer (CPU, Cost Per User) to understand how much more revenue the company brings in than it spends on increasing traffic.
Calculation method:
Revenue for the period / Number of users per year.
CLead or conversion to application
Directly reflects the effectiveness of the product packaging and whether the incoming audience is interested in it. At the same time, conversion can be calculated not only when ordering, but also for any key actions on the site.
It's important to note that different marketing channels may display different CLeads due to the specific "warmth" level of the audience they attract.
Calculation method:
Number of applications for the period / Number of users for the same time * 100%.
CBuyer or conversion to sale
An important indicator of the sales department's performance. It can also show whether the customer is comfortable with the in-product payment process. CBuyer changes depending on the "warmth" of the incoming potential consumer flow, its growth is often accompanied by qualitative changes in the sales department.
Calculation method:
Number of payments for the period / Number of applications for the same time * 100%.
It is very important to constantly evaluate the transformations in dynamics.
Average bill
This metric reflects the amount a consumer spends per transaction and how well they can be encouraged to purchase a related product. The metric should be evaluated in conjunction with the average cost of the product.
Calculation method:
Sales for the period / Number of payments for the same time.
Retention
Shows how often customers make repeat purchases. If this indicator decreases, it is necessary to collect feedback. But not every business implies repeat purchases. For example, a driving school. If so, then retention does not need to be counted.
Calculation method:
(All customers at the end of the period - New customers during the same time) / All consumers at the start of sales * 100%.
Increasing sales funnel conversion
Conversion (CR, conversion rate) is the percentage of users at the first step of the sales funnel to the number of buyers who reach its end. It can also be calculated separately for any of the stages to understand how effectively each level works.
Increasing sales funnel conversion
Source: shutterstock.com
To measure the conversion rate at each stage of the sales funnel, you need to count how many users move from one stage to another. For example, if 1,000 users visit the site, 500 of them browse the catalog, 200 leave a request, and 100 make a purchase, then the conversion rate at each stage will be:
Acquaintance: 1000/1000 = 100%.
Interest: 500/1000 = 50%.
Desire: 200 / 500 = 40%.
Action: 100 / 200 = 50%.
A sharp drop in conversion indicates a bottleneck in the sales funnel. For example, if 50% of users move from interest to desire, but only 10% move from interest to action, the problem may be a lack of necessary buttons/forms or a complex and confusing checkout process.
By expanding your sales funnel at each stage, you can increase your overall conversion rate and turn more leads into potential customers. Here are some ways to do this at different levels:
Optimization of the landing page and website . They should be intuitive, easy to read, short and concise, clearly explaining to visitors what you offer and how you can help them, and consistently guiding them to target actions.
Information on the topic . How to increase landing page conversion to get more applications: checklist and tips.
Work on your content . The more engaging, understandable, and informative it is for your target audience, the more likely it is that these people will stay with you.
Adjust the sales system . The easier the buying process, the more likely the customer is to complete the transaction. Poorly functioning elements or interruptions in the payment system can create large holes in the walls of the funnel.
Use marketing automation tools . Collect contact information about visitors and customers, segment it to launch remarketing campaigns, send personalized messages and automatically receive feedback.
Conduct A/B testing . Test PR ads, landing pages, content, and other site elements to determine which ones are effective in terms of conversion rate.
Improve customer service . Look for ways to answer questions faster, solve problems, and improve the quality of service.
Use social proof . Ask and encourage customers to leave real reviews, display them on the site, in social networks - this is always an important indicator.
Increasing conversion in the sales funnel requires frequent testing, analysis, and optimization.
Recommended articles on this topic:
Marketer's KPI - Key Indicators and Accurate Calculation
Marketing Tips: How to Show That Your Product is the Best
How to get contacts from a client: the most effective metho
NPS
NPS (Net Promoter Score) helps to evaluate customer loyalty to a product. This type of metric is based on customer responses to the question: “Would you recommend us to a friend?” The responses are assessed in points, and NPS is measured in percentages.
Calculation method:
(Number of Promoters - Number of Critics) / Total Number of Respondents * 100%.
Promoters rate the product 9-10 points, while critics rate it no higher than 6.
To evaluate NPS, it is necessary to systematically conduct audience surveys and identify product weaknesses based on feedback from critics.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
LTV
LTV (Lifetime Value) reflects how much profit a company receives over the entire period of cooperation with a specific consumer. One of the important criteria in marketing, which helps determine the client's interest in the company's products.
Calculation method:
Average cost of sales * Average number of sales per month * Customer retention period in months.
LTV can be increased by increasing the average check, as well as by increasing customer loyalty through products and loyalty programs.
ARPU
ARPU (Average Revenue Per User) can be compared vietnam telegram with the cost per customer (CPU, Cost Per User) to understand how much more revenue the company brings in than it spends on increasing traffic.
Calculation method:
Revenue for the period / Number of users per year.
CLead or conversion to application
Directly reflects the effectiveness of the product packaging and whether the incoming audience is interested in it. At the same time, conversion can be calculated not only when ordering, but also for any key actions on the site.
It's important to note that different marketing channels may display different CLeads due to the specific "warmth" level of the audience they attract.
Calculation method:
Number of applications for the period / Number of users for the same time * 100%.
CBuyer or conversion to sale
An important indicator of the sales department's performance. It can also show whether the customer is comfortable with the in-product payment process. CBuyer changes depending on the "warmth" of the incoming potential consumer flow, its growth is often accompanied by qualitative changes in the sales department.
Calculation method:
Number of payments for the period / Number of applications for the same time * 100%.
It is very important to constantly evaluate the transformations in dynamics.
Average bill
This metric reflects the amount a consumer spends per transaction and how well they can be encouraged to purchase a related product. The metric should be evaluated in conjunction with the average cost of the product.
Calculation method:
Sales for the period / Number of payments for the same time.
Retention
Shows how often customers make repeat purchases. If this indicator decreases, it is necessary to collect feedback. But not every business implies repeat purchases. For example, a driving school. If so, then retention does not need to be counted.
Calculation method:
(All customers at the end of the period - New customers during the same time) / All consumers at the start of sales * 100%.
Increasing sales funnel conversion
Conversion (CR, conversion rate) is the percentage of users at the first step of the sales funnel to the number of buyers who reach its end. It can also be calculated separately for any of the stages to understand how effectively each level works.
Increasing sales funnel conversion
Source: shutterstock.com
To measure the conversion rate at each stage of the sales funnel, you need to count how many users move from one stage to another. For example, if 1,000 users visit the site, 500 of them browse the catalog, 200 leave a request, and 100 make a purchase, then the conversion rate at each stage will be:
Acquaintance: 1000/1000 = 100%.
Interest: 500/1000 = 50%.
Desire: 200 / 500 = 40%.
Action: 100 / 200 = 50%.
A sharp drop in conversion indicates a bottleneck in the sales funnel. For example, if 50% of users move from interest to desire, but only 10% move from interest to action, the problem may be a lack of necessary buttons/forms or a complex and confusing checkout process.
By expanding your sales funnel at each stage, you can increase your overall conversion rate and turn more leads into potential customers. Here are some ways to do this at different levels:
Optimization of the landing page and website . They should be intuitive, easy to read, short and concise, clearly explaining to visitors what you offer and how you can help them, and consistently guiding them to target actions.
Information on the topic . How to increase landing page conversion to get more applications: checklist and tips.
Work on your content . The more engaging, understandable, and informative it is for your target audience, the more likely it is that these people will stay with you.
Adjust the sales system . The easier the buying process, the more likely the customer is to complete the transaction. Poorly functioning elements or interruptions in the payment system can create large holes in the walls of the funnel.
Use marketing automation tools . Collect contact information about visitors and customers, segment it to launch remarketing campaigns, send personalized messages and automatically receive feedback.
Conduct A/B testing . Test PR ads, landing pages, content, and other site elements to determine which ones are effective in terms of conversion rate.
Improve customer service . Look for ways to answer questions faster, solve problems, and improve the quality of service.
Use social proof . Ask and encourage customers to leave real reviews, display them on the site, in social networks - this is always an important indicator.
Increasing conversion in the sales funnel requires frequent testing, analysis, and optimization.
Recommended articles on this topic:
Marketer's KPI - Key Indicators and Accurate Calculation
Marketing Tips: How to Show That Your Product is the Best
How to get contacts from a client: the most effective metho