The Sales Funnel Metrics Dictionary for Internet Marketers

The Sales Funnel Metrics Dictionary for Internet Marketers
Strategies September 1, 2015 4 Comments

It’s very common amongst business owners and marketers to get caught up in the hype of metrics and numbers as we become bombarded by them from all different directions.

Hopefully by now in your marketing career you’ve realized that knowing your numbers is extremely important, nevertheless with the sheer volume of metrics you see everyday sometimes you can get pretty overwhelmed.

So today I’ve put together a nice long list of all the common metrics you’ll see across your traffic dashboards.

The Metrics

CTR – Click Through Rate

Your click through rate is the percentage of people who click through to your advertisement or link out of the total amount of people the link or advertisement has reached. You’ll predominantly see this metric being used on ad platforms.

uCTR – Unique Click Through Rate

Your unique click through rate is the same as your regular click through rate aside from it will only count ‘unique’ clicks. So this means it will only track how many clicks from different people were made unlike the metric above which returns the click through rate  regardless of if they’re unique or clicked again from the same person.

You’ll predominantly see this metric being used on ad platforms.

Frequency

Frequency is how often your ad is shown to the audience you’re targeting. There’s both positives and negatives to having a high frequency (people may become annoyed at seeing your ad being shown repetitively, or people may remember you better).

You’ll predominantly see this metric being used on ad platforms.

People Reached

People Reached is a similar metric to frequency however it only reports the number of people the ad is shown to, not the number of times it has been shown. Therefore your advertisement can only be served to one person at a time.

You’ll predominantly see this metric being used on ad platforms.

Facebook Advertising Reporting

CPC – Cost Per Click

Your Cost Per Click is a very popular metric which refers to the cost per individual click on your advertisement or the amount spent to have your advertisement clicked. This method of running ads means you only pay the publisher when your ad is clicked (not when x number of people are reached for example).

Again this is predominantly seen on advertising platforms.

Cost Per Website Click

Not to be confused with CPC, Cost Per Website Click is the cost for someone to click through to the advertiser’s website link. Many ad platforms have multiple types of clicks which can take place on an advertisement, however generally one of the primary goals is to get a website click to drive traffic to a page run by the advertiser.

You’ll predominantly see this metric being used on ad platforms like Facebook.

DPL (Or CPL) – Dollars/Cost Per Lead

DPL is the average revenue generated per lead across the entirety of your sales funnel. This measurement allows you to work out the value a new lead is worth to you at your current conversion percentages and close rates.

It’s also a great indicator so you know that if you acquire leads for less than your dollar per lead, you’ll be making a profit. This metric is commonly found when analysing your sales funnel from acquisition to sale.

EPC – Earnings Per Click

Earnings Per Click is the total revenue divided by the total amount of clicks sent to the offer. Keep in mind, earnings per click can vary with some advertisers promoting to affiliates their EPCs which include refunds, and some EPCs which exclude refunds on the product or service (which can skew the numbers).

Essentially your earnings per click reflects how you can convert your clicks into conversions on a site wide average from all traffic being sent to the page. This metric is most popular in affiliate marketing where affiliates can work out if an offer is worth promoting or not as it’s a strong indicator of the revenue potential if they send traffic to that offer.

CVR – Conversion Rate

Conversion Rate is a very common metric which determines the percentage of people which are sold from a specific page or through a sales funnel.

This is most commonly found on order form pages where people take the action of paying for the product or service directly they’ve been offered through the sales funnel.

CPA – Cost Per (Customer) Acquisition

This metric is a key indicator of what it costs to bring a new customer into your sales funnel.

Every time you bring in a new customer to your business it allows you to market to them and sell them more products therefore the CPA value is critical in building your sales funnel.

Open Rate % (Email)

Your Open Rate is the percentage of people who open your emails that you send out to your list. Whenever you send out an email to the people who have opted in to receive your content, your autoresponder will report back to your how many of those people have opened up your email out of the total you sent it out to.

The higher the percentage, the more engaged (generally) your audience is with what you’re sending out.

CTR Click Through Rate (Email)

We mentioned CTR above in the post, however your CTR when you’re referring to an autoresponder is the % of people who clicked a link in an email you sent out (whether it was through your autoresponder or directly through a campaign).

This metric is really valuable when it comes to gauging how active your list is in taking up your offers and/or services.

Relevance Score

A relevance score is a number shown to you by some advertising platforms which gives you an indication of how relevant an advertisement is to your target audience.

While there’s no exact formula that’s made public to advertisers on how this score is decided, generally the higher the score, the better your advertisement will perform across its other metrics.

Show Up Rate (Webinars)

This percentage is the number of people who turn up to the live/recorded webinar, divided by the total number of people have opted into your webinar.

The higher this number is the more people you can sell to during the webinar, and therefore the more you can close into a program.

CPR – Cost Per Webinar Registration (Webinars)

Your Cost Per Registration is essentially the same as cost per lead, but for webinar funnels. Registering for a webinar is a bit more of a commitment than a lead magnet, so generally this number is slightly higher.

This metric is used for both live and evergreen webinars and is a key metric when looking at your funnel overview. This metric applies specifically to webinar funnels.

CPA – Cost Per Attendee (Webinars)

The CPA metric is the total registrations who attended live on the webinar, divided by the total ad spend on the campaign for that webinar.

This gives you a clear dollar value per live attendee which you can monitor and aim to grow as you optimize your follow up sequence to your live webinar.

CCR – Contacts Conversion Rate

The Contacts Conversion rate is the number of leads generated divided by the total unique visitors who have visited the page. This metric is on each funnel step in your ClickFunnels account which means you’ll easily be able to see how each page is converting.

ClickFunnels Analytics

BR – Bounce Rate

The Bounce rate metric shows you what percentage of visitors leave your website before further exploring your website. While this metric is not common in sales funnels (as visitors generally only have one call to action on each page within a sales funnel) it is still a valuable metric to track when operating online.

Generally you want the bounce rate to be quite low so people decide to spend more time on your site. You’ll see this metric commonly used in Google Analytics dashboards.

LCV (Or CLV) – Lifetime Customer Value

Lifetime Customer Value is the average value of a customer after they’ve been all the way through your sales funnel. This takes into account any recurring payments, upfront payments, upsells, downsells and more.

The metric is a prediction of the gross revenue attributed to the entire future relationship with that customer. This metric is difficult to measure with new businesses who are just launching a new product or service, however is extremely important in valuing potential customers.

ROR – Rate Of Return Visitors

Your Rate of Return Visitors is the percentage of visitors who keep returning to your website to engage and view content which you publish.

Knowing your rate of return visitors gives you an insight into how you can improve the content you deliver to your audience to keep them coming back for more. This is metric is mostly used in blogs such as WordPress and can give you an idea of how many people who keep returning to your website have now become leads or customers too by comparing this to your total leads.

Churn Rate

This is the percentage rate at which customers stop subscribing to a service or product (e.g. a membership site or software). This metric is key amongst membership sites which bill their members on a monthly plan. The goal is to keep this rate as low as possible so customers stick with the program for as long as possible.

ClickFunnels lets you see the important metrics on your funnel per page. The analytics section is right in your dashboard so you can view whenever.

So Overall…

Now that you’ve got explanations to some of the key metrics which are used in sales funnels across the board, you’ll be able to make sure you’re tracking them effectively.

Over time I’ll continue to update this post with more and more definitions regarding to the metrics of sales funnels.

If this is something which you’ve found value in, be sure to share it in an active Facebook Group you’re involved in.

I’d love to know in the comments below, which metrics do you use in your business on a day-to-day basis? Have I defined them in the dictionary? If not, comment below and I’ll be sure to add them in.

ClickFunnels Action Steps

Viewing your funnels analytics is easy as it’s displayed right in your dashboard. Here’s a guide as an example.

How to View Your Sales Analytics

Step 1: Log into your ClickFunnels account

Step 2: Go to the funnel of your choice > Order Page

clickfunnels-analytics-1

Step 3: Choose the timeline of your order page performance.

  1. Last 7 Days
  2. Last 30 Days
  3. Last 2 Months
  4. This Year
  5. All Time

clickfunnels-analytics

 

Written by Stephen Esketzis

Stephen Esketzis is Head Of Content Marketing at Clickfunnels. He is known as the 'Sales Funnel Architect' and is a specialist at using paid traffic to generate highly profitable sales funnels. You can also listen to his podcast 'Marketing on The Move' and look him up on Facebook.

  • Super!

    Thanks.

    Doug

  • Jason ONeil

    This is an awesome article! Shared it on LinkedIn and FB.

    Thank you for putting this together!

    Maybe at some point, put together an article on how to come up with the lifetime value of a customer. That would be awesome to see how y’all calculate that figure.

    I’m not sure if CF makes it possible to do it without having to manually look across all funnels and see all the different products someone has bought across funnels.

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