How To Use Your Sales Funnel Data To Dominate Your Market

People are talking about how important data is. But it’s not enough to just have data. You also need to use it in the right way. That’s why we are going to talk about how you can use your sales funnel data to your advantage.Table of Contents:

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

You should start by looking at your traffic data to see which source has the most people who turn into paying customers. Once you know that, you need to do more of what works for that source. If there is one traffic source that has a low number of people who turn into paying customers, then you should stop investing in it.

This will free up resources to invest in your top traffic source. Note that we are not talking about page visitor to lead conversion rate, we are talking about the lead to paying customer conversion rate. It’s possible that some traffic sources generate a lot of leads, but those leads aren’t very 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 there are several different types of customers. You might want to have a separate sales funnel for each type of customer, so you can offer them different things based on what they want.

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:

• A visitor to lead conversion rate.
• Lead to paying customer conversion rate.
• Paying customers 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 improve your sales funnel by doing this again and again. You can do this by making sure that the page design, headline, and sales copy are all good. But you also need to make sure that the structural of the funnel is good. If it is not, then no amount of tweaks will 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, you need to provide enough value at each stage to build trust so people will move to the next stage. You also need to make sure your offers follow a logical progression. If your sales funnel isn’t working, it might make sense to drop it 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, each sale generates.

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

You need to find ways to increase the average amount people spend on each purchase. This will also increase how much each customer spends over their lifetime. As a result, you can then afford to spend more money to get new customers. This is important because the business that spends the most money to get new customers 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”.

Click the link below if you’re ready for the next step — to build your high-converting sales funnel that will make the most of your marketing efforts!

>>>Launch Your First (Or Next) 7 Figure Funnel In 10 Minutes Or less!

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