How To Use Your Sales Funnel Data To Your Advantage

How To Use Your Sales Funnel Data To Your Advantage

Everyone is talking about the importance of data.

But it’s not enough to simply accumulate data – you also need to know how to make the most out of it.

That’s why today we are going to discuss how you can use your sales funnel data to your advantage.

Optimize for Traffic Quality

One common mistake that we see is entrepreneurs only paying attention to the amount of traffic that their sales funnel gets.

The underlying assumption behind this seems to be the belief that all traffic is equally valuable.

Unfortunately, that’s not the case, which is why it’s so important to distinguish between:

  • High-quality traffic aka your ideal customers.
  • Low-quality traffic aka everyone else.

Your sales funnel traffic will always be a mix between the two but you should be continuously optimizing for traffic quality. So how can you do that?

Double Down on the Traffic Source That Converts the Best

We recommend you to start by analyzing your traffic data to see which traffic source has the highest lead to paying customer conversion rate.

Once you have identified it, you want to double down on it – you might be surprised how much you can achieve by simply following the maxim “do more of what works”.

Conversely, you should also see which traffic source has the lowest lead to paying customer conversion rate and stop investing in it altogether.

This will free up more resources to invest in your top traffic source.

Note that we aren’t talking about page visitor to lead conversion rate, we are talking about the lead to paying customer conversion rate.

It’s entirely possible that some traffic sources generate a lot of leads, but those leads aren’t that interested in buying from you.

So don’t chase the vanity metric of “email subscribers” – focus on what is actually making you money.

Use the Pareto Principle to Target the Right People With Paid Ads

Pareto principle, also known as the 80/20 rule, says that approximately 80% of the consequences come from approximately 20% of the causes.

It is likely that approximately 80% of your revenue is generated by approximately 20% of your customers.

(The exact percentages don’t matter, the point is that a minority of customers are bringing in the majority of the revenue).

So it stands to reason that if you were able to attract more of those lucrative customers, you would increase your revenue.

Here’s how you can do that:

  • Look at your existing sales data. Who is buying your products?
  • Analyze all data that you have on those customers. What traits do they have in common?
  • Use those traits to target people similar to them with paid ads.

Likewise, you can analyze what leads that never convert into paying customers have in common and then use those traits to stop targeting them altogether.

This sounds super simple but it can be incredibly effective, especially if you are willing to be ruthless with your targeting.

Identify Different Customer Segments, Create Separate Sales Funnels for Them

When you look at your sales data, you might find that instead of just one type of customer, there are several distinct customer segments.

You might want to consider creating a separate sales funnel for each of these segments so that you could tailor your lead magnets, sales copy, and offers to different types of customers.

Alternatively, you can implement a survey funnel, which allows you to use one landing page for everyone, but then send potential customers down different paths depending on their survey answers.

Use Conversion Rate Data To Identify Problems in Your Sales Funnel

A conversion is an act of responding to the call to action by taking that action.

Meanwhile, a conversion rate is a metric that shows what percentage of people who have been presented with the call to action converted.

Sales funnels have several conversion rates:

  • Visitor to lead conversion rate.
  • Lead to paying customer conversion rate.
  • Paying customer to repeat customer conversion rate.

You can use conversion rate optimization to 2x, 5x, or even 10x your sales funnel profits.

Here’s how:

  1. Set up a paid advertising campaign to drive traffic to your sales funnel. 
  2. Sit back and watch what happens. Are people subscribing to your email list, buying your products, and becoming repeat customers?
  3. Once you have reliable conversion rate data for every stage of your funnel, take a closer look at it. What is the weakest link in your sales funnel? Determine what the problem is and figure out how to fix it.

You can repeat this process indefinitely because no matter how great your sales funnel is, there’s always space for improvement.

Conversion rate optimization isn’t always the answer, though – it may be that the problem isn’t page design, its headline, its sales copy, or any of that stuff.

Sometimes, sales funnels have structural problems, in which case no amount of tweaks is going to help.

So if you aren’t getting the results you want with conversion rate optimization, you need to take a look at the fundamentals:

  • Do your offers resonate with your target audience?
  • Does each offer provide enough value to get people interested in the next offer?
  • Does the sequence of the offers make sense?

Remember that with the Value Ladder sales funnel, not only do you need to provide enough value at each stage to build the trust required for moving to the next stage, but you also need to make sure that your offers follow a logical progression.

If your sales funnel isn’t working at all, it might make sense to drop it altogether and build a new one from scratch.

Increase Average Order Value With Upsells and Cross-Sells

Average order value (AOV) is an important metric that tells you how much revenue, on average, does each sale generate.

Calculating it is easy: all you need to do is divide the revenue generated during a specific time period by the number of orders received during that same time period.

So, for example, if last month you had 10 orders, which generated $1,000 in revenue, it means that your AOV is $100:

$1,000/10 = $100

It’s important to find ways to increase your average order value because doing that will also automatically increase your customer lifetime value (CLV).

Consequently, increasing your customer lifetime value will allow you to also increase your customer acquisition cost (CAC) – you will be able to spend more money to acquire new customers.

And, as our co-founder Russel Brunson likes to say, the business that can spend the most to acquire a new customer wins.

The easiest way to increase the average order value is to simply add upsells and cross-sells to your offers:

  • An upsell is an offer that is an upgrade on the initial offer that the customer has already accepted (e.g. “Would you like to supersize that?”).
  • A cross-sell is an offer that is complementary to the initial offer that the customer has already accepted (e.g. “Would you like fries with that?”).

When you add upsells and cross-sells to your offers, you are pretty much guaranteed to increase the average order value. Why?

Because it’s almost certain that some percentage of the people willing to pay for your initial offer will also say yes to the cross-sells and upsells.

And once your average order value is up, you will be able to increase your customer acquisition cost.

This might give you a competitive edge over rival companies that can’t match your marketing spend due to having a lower average order value than you.

Want To Learn More About Growing Your Online Business With Sales Funnels?

Our co-founder, Russel Brunson, has written a best-selling book series called “The Secrets Trilogy”.

The first book in this trilogy, “DotCom Secrets”, is all about growing your online business with sales funnels.

Want to know how to:

  • Build a profitable sales funnel?
  • Optimize an existing sales funnel?
  • Maximize your revenue via cross-sells, upsells, and downsells?

Russel discusses all that and more in “DotCom Secrets”- he shares the strategies and tactics that he used to take ClickFunnels from zero to $10M+ in annual revenue in just one year (it’s at $100M+ now!).

So if you want to learn from a proven entrepreneur who has built a 9-figure online business and is one of the world’s top experts on sales funnels, you should definitely get yourself a copy of “DotCom Secrets”.

Or, better yet, let us send you one for free – all we ask is that you cover the shipping!

GET YOUR FREE COPY OF “DOTCOM SECRETS

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