You might have heard of a conversion funnel. Conceptually, a conversion funnel consists of a funnel where the top end (TOFU - top of the funnel) captures a large audience. As different experiences cause shrinkage by the end of the funnel (BOFU - bottom of the funnel), only a fraction of the audience remains. The conversion rate consists of the TOFU population divided by the BOFU population. The goal is to bring as much of the audience as possible, from awareness to loyal customers. Conversion funnels are often used in sales and marketing strategies. Though the name of each part of the funnel varies from company to company, they generally fall within the following terms:
Since marketing feeds sales, its conversion funnel tends to align more with the following diagram:
The metrics for a digital marketing campaign will depend on the objective's location within the funnel. For example, if the objective is to grow brand following, then the relevant metrics are most likely in the awareness stage of the funnel. To learn more about marketing funnels, check out this article.
Review the following stages and the metrics that are measured at each stage:
Awareness Stage (TOFU): The goal here is to increase brand visibility and attract potential customers. Metrics focus on how well the brand is being exposed to the target audience.
Impressions: Number of times content is displayed.
Reach: Number of unique users who have seen your content.
Website Traffic (Visits): Total number of visits to your website.
Click-Through Rate (CTR): The percentage of people who clicked on a link out of the total impressions.
Social Media Engagement: Likes, shares, and comments to measure interaction on social platforms.
Video Views: Number of times a video ad or content was watched.
Consideration Stage (Middle of Funnel - MOFU): In this stage, the focus shifts to engaging the audience, fostering interest, and generating leads.
Time on Site: Average time a user spends on your website.
Pages per Session: How many pages a visitor views in a session.
Bounce Rate: The percentage of visitors who leave the site after viewing only one page.
Email Open Rate: Percentage of recipients who opened your email.
Email Click-Through Rate (CTR): Percentage of email recipients who clicked on a link within the email.
Cost Per Click (CPC): How much you pay for each click on an ad.
Lead Generation: Number of leads or sign-ups from content (e.g., eBooks, webinars).
Conversion Stage (BOFU): At this stage, the objective is to drive conversions, which could be purchases, subscriptions, or other goals.
Conversion Rate: The percentage of visitors who take a desired action (e.g., making a purchase or signing up).
Cost Per Conversion: The cost to acquire a single conversion (e.g., cost per sale).
Sales Revenue: The total revenue generated from digital marketing efforts.
Return on Ad Spend (ROAS): Revenue earned for every dollar spent on advertising.
Cart Abandonment Rate: The percentage of users who add items to their cart but don’t complete the purchase.
Customer Acquisition Cost (CAC): Total cost of acquiring a customer, including marketing and sales expenses.
Retention Stage (Post-Conversion): This stage focuses on maintaining customer relationships and increasing customer lifetime value.
Customer Lifetime Value (CLV): The predicted revenue a customer will generate during their entire relationship with your company.
Churn Rate: The percentage of customers who stop doing business with you over a given period.
Repeat Purchase Rate: Percentage of customers who return to make a second purchase.
Net Promoter Score (NPS): A customer loyalty metric that measures how likely customers are to recommend your business.
Email Engagement: Open rates and CTR for retention-focused emails (e.g., newsletters, re-engagement campaigns).
Social Media Sentiment: Analysis of customer attitudes toward your brand on social platforms.
Advocacy Stage (Loyalty): This stage involves encouraging satisfied customers to become advocates who promote your brand.
Referral Rate: The percentage of new customers acquired through referrals.
Customer Reviews and Ratings: Volume and sentiment of reviews on platforms like Google or Yelp.
User-Generated Content: Content created by customers (e.g., social posts, testimonials).
Social Shares: How often your content is shared by loyal customers.
Influencer Mentions: Tracking mentions of your brand by key influencers or advocates.
Brand sentiment: Various apps provide brand 'listening' functions that noten the sentiment of the brand based on public and sometimes private discussions about the brand
Note that each metric measures how efficiently a company moves prospects from awareness to conversion. They provide insights into how well your digital marketing strategy performs at each funnel stage, helping you optimize campaigns for better results.
Protip: Other metrics exist. However, we provided most core metrics at each funnel stage to get you started.
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