Optimizing Marketing Funnel Performance Metrics

Posted on Feb 12, 2025 in Marketing

Awareness Stage

Impressions

  • Low: Suggests limited reach, possibly due to narrow targeting or low ad spend.

Recommendations:

  1. Expand target audience; use broader demographics/interests.
  2. Increase ad budget for more exposure.
  3. Explore additional channels/placements to reach a wider audience.
  • High: Indicates strong visibility.

Recommendations:

  1. Refine targeting to focus on more relevant audiences.
  2. Improve ad creative and messaging to increase relevance.
  3. Apply frequency capping to avoid ad fatigue.

CTR (Click-Through Rate)

  • Low (<2%): Ad not generating enough interest, possibly due to poor creative, messaging, or targeting.

Recommendations:

  1. A/B test different creatives, CTAs, and messaging to find what engages users.
  2. Refine targeting to reach a more interested audience.
  3. Use more compelling CTAs to drive clicks.
  • High (>5%): Shows that the ad resonates well with the audience.

Recommendations:

  1. Scale successful ad creatives and expand targeting to similar audience segments.
  2. Increase budget allocation to capitalize on high engagement.
  3. Test incremental optimization in high-performing areas.

CPM (Cost Per Mille)

  • Low (<€4): Efficient spending, due to effective targeting or low competition in your audience segment.

Recommendations:

  1. Maintain current targeting strategy, but consider expanding to similar audiences to maximize cost-effective reach.
  2. Monitor performance regularly so costs stay low.
  • High (>€7): Indicates high competition or overly narrow targeting, resulting in increased costs.

Recommendations:

  1. Adjust targeting to find less competitive, cost-effective segments.
  2. Focus on specific times/placements where CPM is lower, but performance remains strong.

Consideration Stage

Web Visits

  • Low: Potential customers aren’t clicking to learn more, due to unengaging content or misaligned targeting.

Recommendations:

  1. Improve ad and social content to make it more informative and aligned with customer needs.
  2. Refine audience targeting based on user intent.
  3. Create compelling CTAs that encourage exploration.
  • High: Indicates strong interest, but does not always translate into meaningful engagement or conversions.

Recommendations:

  1. Ensure landing pages are optimized for user experience, with clear next steps (CTAs) to guide users further down the funnel.
  2. Use retargeting ads to remind visitors about products they viewed.

Bounce Rate

  • Low (between 26% and 40%): Visitors are finding value and engaging with the content on the website.

Recommendations:

  1. Continue using engaging landing pages that address customer needs.
  2. Analyze top-performing content to replicate strategies across other pages.
  3. Maintain consistent messaging from ad to landing page to ensure alignment.
  • High (>70%): Visitors are not finding content engaging, possibly due to poor alignment between the ad and landing page.

Recommendations:

  1. Ensure landing page content matches ad messaging to reduce drop-offs.
  2. Improve page load speed and mobile-friendliness to enhance user experience.
  3. Use personalized content to better match user expectations based on ad targeting.

Consideration Stage (Part 2)

Pages per Session

  • Low (<2): May mean visitors aren’t exploring further, possibly due to unclear navigation or lack of engaging content.

Recommendations:

  • Enhance internal linking and suggest related content to encourage more exploration.
  • Use CTAs strategically on each page to guide users through the site.
  • Consider adding interactive content or FAQs to boost engagement.
  • High (>5): Suggests strong user interest, with visitors exploring multiple pages to learn more.

Recommendations:

  • Identify the most visited pages and place strategic CTAs on them to encourage conversions.
  • Optimize the flow between pages to improve the user journey and minimize drop-offs.
  • Leverage data on user paths to replicate successful navigation structures.

Decision Stage

Conversion Rate

  • Low (<2%): Suggests that users may be hesitating to complete the purchase, possibly due to unclear pricing or a complicated checkout process.

Recommendations:

  1. Simplify the checkout process, reducing any unnecessary steps to avoid abandonment.
  2. Highlight security features, guarantees, or testimonials to build trust.
  3. Use scarcity tactics (e.g., limited stock or time-sensitive discounts) to create urgency.
  • High (>5%): Indicates that users are motivated to complete purchases, reflecting well-aligned offers and user trust in the brand.

Recommendations:

  1. Consider upselling or cross-selling related products during the checkout process to increase average order value.
  2. Invest in retargeting campaigns to recapture any users who abandoned their carts.

Cart Abandonment Rate

  • Low (<40%): Is ideal, showing that users who add items to the cart are generally completing their purchases.

Recommendations:

  1. Maintain clear and transparent pricing throughout the shopping experience.
  2. Continue to use optimized checkout flows and remove potential obstacles for users.
  3. Implement a seamless payment process with multiple options.
  • High (>70%): Suggests friction in the final steps, possibly due to high shipping costs, a complex checkout process, or lack of payment options.

Recommendations:

  1. Offer free shipping or discounts for cart completion, if feasible.
  2. Simplify the checkout form and add guest checkout options.
  3. Use cart abandonment emails or retargeting ads to remind users to complete their purchase.

Decision Stage (Part 2)

Average Order Value (AOV)

  • Low: Indicates customers aren’t buying as many items or are selecting lower-priced options, possibly due to unclear value propositions.

Recommendations:

  1. Encourage higher spending with bundle deals or volume discounts.
  2. Use targeted upselling and cross-selling on product pages and at checkout.
  3. Offer free shipping thresholds to incentivize larger purchases.
  • High: Suggests users are purchasing higher-value items or multiple items per order, reflecting effective upselling and product offerings.

Recommendations:

  1. Analyze which products or bundles drive high AOV and promote them more prominently.
  2. Use loyalty incentives to encourage repeat high-value purchases.

Cost per Acquisition (CPA)

  • Low (<€20): Means efficient conversions at minimal cost, indicating high ROI and effective ad spending.

Recommendations:

  1. Increase ad budget to scale conversions while monitoring CPA.
  2. Focus on top-performing audience segments for continued efficiency.
  3. Prioritize successful channels to maintain low costs and maximize reach.
  • High (>€50): Costly conversions, which reduces overall ROI and may point to targeting inefficiencies.

Recommendations:

  1. Refine targeting to focus on cost-effective audiences and channels.
  2. Optimize ad creatives and landing pages to improve conversion rates.
  3. Use automated bidding strategies to reduce CPA and boost efficiency.

Retention and Advocacy

Repeat Purchase Rate

  • Low (<20%): Customers not returning, possibly due to dissatisfaction, limited brand loyalty, or lack of follow-up engagement.

Recommendations:

  1. Implement email marketing campaigns with personalized product recommendations.
  2. Use loyalty programs or rewards to incentivize repeat purchases.
  3. Send re-engagement offers (e.g., discounts) to inactive customers.
  • High (>40%): Indicates strong customer loyalty and satisfaction, showing that customers find value in returning.

Recommendations:

  1. Continue rewarding loyal customers with exclusive offers and early access to new products.
  2. Use customer data to enhance personalized recommendations and upselling.
  3. Expand loyalty programs to make high-repeat customers feel valued.

Net Promoter Score (NPS)

  • Low (<0): Indicates customers aren’t highly satisfied and may not recommend the brand, often due to issues in service, product quality, or overall experience.

Recommendations:

  1. Collect qualitative feedback to understand pain points and areas of improvement.
  2. Address common complaints and communicate improvements transparently to customers.
  3. Offer incentives for completing NPS surveys and consider loyalty rewards for promoters.
  • High (>50): Customers are satisfied and likely to recommend the brand, fostering organic growth.

Recommendations:

  1. Encourage promoters to share reviews (e.g., on review sites).
  2. Develop a referral program to leverage promoters’ positive experiences.
  3. Feature high NPS ratings and testimonials in marketing materials to attract new customers.

Retention and Advocacy (Part 2)

Email Click-Through Rate (CTR)

  • Low (<2%): Low email CTR indicates that while customers are opening emails, they aren’t engaging with the content or taking further action. This could be due to irrelevant content, weak CTAs, or email frequency issues.

Recommendations:

  • Personalize email content based on user behavior and preferences (e.g., product recommendations based on previous purchases).
  • Test and optimize subject lines, CTA wording, and email design to increase clicks.
  • Segment the audience more precisely to tailor content to each group’s needs and interests.
  • High (2% to 5%): Shows strong engagement, indicating that recipients find the content valuable and relevant. This positive response can help drive repeat purchases and strengthen brand loyalty.

Recommendations:

  • Include exclusive offers, early access, or rewards for loyal customers to further incentivize engagement.
  • Use follow-up sequences to nurture high-engagement users, such as upsell emails or reminders for items left in their cart.
  • Consider expanding the email list with similar segments to leverage successful campaigns on a larger scale.