I just watched a great video on “Conversion Hacking” from Vishen Lakhiani of MindValley.
“Conversion Hacks” are simply ways to increase your conversions.
Importantly, as Vishen points at at the beginning, small conversion increases can have a major and positive effect on profits. For example, he explains that a 28% boost in sales doubled profits. And how do you get the 28% boost in sales? From “conversion hacking” or improving other metrics like your email open rate or # of customer purchases per year.
You can watch the video here:
Importantly, Vishen points out that his team tracks both “Smart Numbers” and KPIs. Smart Numbers are essentially a summation of the smaller KPIs. For instance Total Email Revenues is the summation of the smaller email KPIs/metrics such as email open rates, click through rates, earnings per click, etc. (We do the same in our Guiding Metrics dashboard; while we don’t call them “Smart Numbers” we put these numbers on the top of our dashboard tabs.
I paused the video a few times to copy down the Smart Numbers and KPIs in several areas. They were as follows:
Traffic
- Asset: Automated Profits
- Smart #: ROI in first 28 days
- KPI: Rev/Investment Threshold
- KPI: Break-even Point
- KPI: 9 Month Billings
- KPI: Cost/Lead
- KPI: Cost/Customer
Signups
- Asset: Leads
- Smart #: Actives Leads times Value Per Lead
- KPI: Leads
- KPI: Unsubscribe Rates
- KPI: % Active
- KPI: Delivery Rate
- KPI: Value/Lead
Customers
- Asset: Total Active Customers
- Smart #: Customer Lifetime Value
- KPI: Actives in Last 12 Months
- KPI: Avg. Purchases per Customer
- KPI: Frequency of Purchases
- KPI: Avg. spend in one year
- KPI: Avg. spend in 3 months
- KPI: NPS (net promoter score)
Affiliates
- Asset: Revenue from Affiliates
- Smart #: Affilaite Revenue
- KPI: Monthly Launch Revenue
- KPI: Number of Affiliates
- KPI: Auto-Revenue from Affiliates
- KPI: Leads Generated
- KPI: Promo Revenue
- KPI: Events Revenue
- KPI: EPC (earnings per click)
- Asset: Organic Traffic
- Smart #: Revenue from Content
- KPI: Unique Organic Visitors
- KPI: % Organic Visits
- KPI: Social Media Actions on Page
- KPI: Organic Leads
- KPI: Content Produced
Revenue
- Asset: Total Revenue
- Smart #: Revenue per Unique Visit
- KPI: Sign-up rate
- KPI: Sales conversion rate
- KPI: Visits
- KPI: Revenue
I reached out to Vishen’s team after I watched the video. While they are managing the business beautifully by tracking their KPIs and using them to focus their efforts (and that’s why they are growing so rapidly and increasing their valuation so much), they are wasting TONS of hours by manually reporting their KPIs using Excel. If they had a Guiding Metrics dashboard, not only would they save hundreds of hours, but they’d be able to see their KPIs in real-time (vs just once/week) and be able to better distribute them to all team members. Profits, as a result, would grow further.
What are your thoughts? Please leave your comments below.
