A couple weeks ago, I spent the morning at my good friend Amy Porterfield’s house for an event she was holding for a few of her students.
I spent time working with attendees, helping them identify where they could make improvements to their sales funnels.
We focused on the numbers…
Things like cost per conversion, opt-in page conversion rate, stuff like that.
After all, it’s ALL about the numbers. You gotta know ‘em. Sales funnels, paid traffic, it’s all a numbers game.
What I found really interesting was many of them were doing AMAZINGly well yet they didn’t realize it.
I’d ask them things like, what’s your cost per conversion here? $0.46…
What’s your email open rate there? 45%
Are those good? They’d ask.
Ah, yes! They’re awesome! They just didn’t realize it…
So in this article I want to share how you can dive into your own sales funnel and measure the effectiveness of it.
If you don’t yet have a sales funnel in your online business (it’s time to put one in place!), make sure to watch this video here:
Why Know Your Numbers?
As I mentioned above, you gotta know your numbers. In your business, in your sales funnels, paid traffic… All of it.
Knowing your numbers allows you to make decisions on what’s working and what needs to be improved based on actual data. It removes all the guesswork.
If you listen to my Art of Paid Traffic podcast, at the end of every episode I say “keep testing your paid traffic to find what’s working for you and your business, and then do MORE of what’s working…“
Well, it’s knowing your numbers that allows you to say, ok cool, this is working so let’s double down here. Or, oh this isn’t working over here, so let’s test something new.
It’s called optimizing your sales funnel and the idea is to get your funnel to a point where you’re making more money from it than what you’re paying to put people into it.
Then once you’ve got it dialed in you can automate it, which is where the real fun is because you’ll have leads and sales coming in on autopilot.
What Metrics Should You Focus On?
When measuring the effectiveness of your sales funnel, I like to break down the pieces of the funnel and look at each piece.
Here are some general questions you might ask yourself to start measuring things (these will differ based on your individual sales funnel):
- How well are my Facebook ads performing?
- What’s the conversion rate of my opt-in/registration page?
- If I have an offer on my opt-in thank you page, how well is it converting?
- If I’m running a webinar, what’s the show-up rate? Conversion rate?
- What are the email open rates for my email follow-up?
- What are the click rates in my email follow-up?
- What’s the conversion rate on the sales page?
Looking at each one of these pieces allows you to see areas for improvement within your funnel.
So, just like the attendees at Amy Porterfield’s event, how do you know if your stats are good?
Let’s look at some benchmarks to shoot for…
How Good is Good? Key Benchmarks in Your Sales Funnel
I need to start this section with the caveat that “what’s good” is really going to differ based on things like what niche you’re in, what your offer is, what kind of traffic is coming into your sales funnel (cold vs warm, for example), etc…
For the following benchmarks, I’m going to make the assumption that you have an online business where you’re selling a product or service.
First and foremost, I recommend starting off by looking at the results that are most relevant to your Objective. For example…
If your objective is:
- “Website conversions” — look at your cost per conversion first. Then how many conversions you’ve had and then the amount of money you’ve spent.
- “Clicks to website” — look at your cost per click first. Then click-through-rate and then how many clicks to your landing page.
Again, since every niche is different, results will vary GREATLY. I’m going with if you’ve got an online business where you’re selling a product or service.
Here are some general guidelines:
- Cost per lead (CPL): Try and shoot for $8 and under
- If you’ve run some successful Facebook ad campaigns before and you already know roughly what your CPL should be, and the CPL you’re seeing is at least 3x your expectations, pause your ad and test something new.
- Cost per click (CPC), if your Objective is Clicks to Website: Try and shoot $1 and under
- Click Through Rate (CTR): 1%+ you’re doing well, less than 1% I’d take a careful look at the rest of your stats to see if you need to test something new.
- Reach: Reach is simply the number of people that your ad has been shown to. (I like to have a reach of at least 1,000 before optimizing)
- Frequency: The average number of times a person has seen your ad. If Frequency goes 4+, it’s time to refresh your ad.
- Relevancy Score: A rating of 1-10 based on how your targeted audience is responding to your ad. The higher the score the lower cost you’ll pay and the more people will see your ad.
- 1-3 — your ad isn’t resonating with your audience, you may want to consider testing something new.
- 4-6 — not bad but keep an eye on the performance of your ad.
- 7-10 — nice work, keep it up!
Conversion Rate On Your Opt-In/Registration Page:
Try and shoot for 20% and higher. If you’re less than 20%, something is likely up with the consistency between your ad and the landing page (you want ad copy, images, etc… to be consistent).
Email Open/Click Rates:
The average open rates for emails these days hovers around 10-20%, depending on your niche. Again, there are definitely outliers here.
Average click rates on links within your emails is roughly 2-4%. Again, some can be much higher.
Both of these are highly dependent on the health of your email list and how engaged they are with you. You should regularly clean out your email list of those people who aren’t engaging with your emails.
If you’ve got low open rates, that likely means your subject lines need some work.
If your click rates are low, it likely means your email writing/offer presentation needs some work.
Sales Page Conversion Rate:
This is going to depend on a lot of factors but in general, try and shoot for a conversion rate of about ~1-3%.
I’m doing a whole podcast episode on webinar stats, but if you’re using webinars in your business here are some rough benchmarks to shoot for:
Show Up Rate: This is the number of people who actually show up to your webinar versus total number of people who’ve registered.
The average show up rate is ~20-30%. Shoot for 30% +
Conversion Rate (% of people buying on webinar):
The Average is ~2-6% of the people on your webinar who will buy your offer. Again, this will vary greatly depending on your offer, positioning, scarcity, how many people stayed on your webinar, etc…
**40-60% of your total sales during a webinar launch will likely come post-webinar!
I hope this helps you gain some clarity and confidence around all the stats and metrics in your sales funnel, as you take someone from being a stranger to your business all the way through to becoming a paying customer.
Again, to reiterate, these are GENERAL guidelines and might be much different for some niches, products, etc…
And, your sales funnel may look very different. Regardless of your business, though, knowing your numbers so you can track, improve, optimize and automate leads and sales is the foundation of a quickly growing business.
You’re Invited: Upcoming Live Online Workshops
If you have an online business, you’re not gonna want to miss one of my upcoming live online training workshops where you’ll learn How to Create An Automated Facebook Ads System that Gets Leads & Sales Everyday.
To make it as convenient as possible, I’m doing 4 live times starting next week, September 14th – September 16th.
To register for a day and time that works best for you, go to rickmulready.com/fbtraining
In each of the workshops, you’ll learn:
- The EXACT step-by-step formula for automating leads and sales every day with Facebook ads.
- The most effective strategies that are working right now on Facebook for GROWING your email list and making SALES.
- My proven system for turning cold Facebook ads traffic into QUALIFIED LEADS for your business and quickly turning those leads into paying customers.
- You’ll discover BRAND NEW strategies that ENSURE A RETURN on the money you’re spending on your ads. It’s all about giving Facebook $1 and getting $2, $5+ in return.
- And we’ll go behind-the-scenes of 5, 6 and 7-figure online businesses who are automating their revenue and reaching more of their target customers every day.
Click here to register: How to Create An Automated Facebook Ads System that Gets Leads & Sales Everyday.