To create an effective sales funnel, you need to visualize the path your potential buyer takes in detail. This can help you understand their goals at each stage, choose the best content, and develop a quality step-by-step tool.
Sales Funnel Metrics
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 cambodia phone data to systematically conduct audience surveys and identify product weaknesses based on feedback from critics.
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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 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%.