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Metric of the Week: Conversion Funnel Ratios

What Is This Metric?

A conversion occurs when a visitor to your website takes one or more actions you desire. For example, that visitor may buy your product, or fill out of form, or call you, or maybe simply click to another page of your website.

Why Should I Care?

It is very important that you define and track your most important funnels (the paths through your website you want visitors to take) using the KPIs discussed herein.

For example, let’s say your landing page (the page someone comes to when clicking one of your ads) is Page A. Page A educates the visitor and attempts to push them to Page B which is your order form. Let’s further say that Page C is the “thank you page” visitors get to after they buy.

In this case, you should track several KPIs based on this specific funnel. For example, what percentage of your website visitors who land on Page A make it to Page B? What percentage of those visitors make it to Page C?

The key is 1) to identify your funnel and 2) improve every aspect of your funnel, starting with the one that when improved, will most impact your bottom line.

In tracking your conversion funnel, you should understand the flow throughout your funnel, and also track specific KPIs throughout the funnel such as:

  1.      Visitor to lead ratio
  2.      Visitor to customer ratio
  3.      Lead to customer ratio

Finally, look at your conversion funnels by sources of traffic and device type as appropriate. For example, what are your funnel results for Facebook versus Google traffic? What are the results from visitors using a desktop versus mobile device versus tablet?

What Does It Look Like?

conversion-funnel

What Can You Do To Improve This Metric?

Aesthetics and flow play a large part in improving your conversion funnel ratio. You want visitors to have a consistent, positive feeling once they arrive on your landing page all the way through to your “Thank You For Buying” page.

Also, track and leverage the sources/referrals which are giving you the highest conversion rates. For example, if Facebook ad traffic converts at 80% vs. Google AdWords at 20%, advertise more on Facebook (assuming same cost per click in this example).

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