web analytics

Sales funnel or full funnel conversion optimization? Which should you use and when? It all depends on what you want to understand.

Full funnel conversion optimization – or the Conversion Sciences Profit Funnel™ – provides the analysis and insights needed to help positively impact your business bottom line. Analyzing a sales funnel helps improve those issues found in a specific buying process.

There is nothing wrong about analyzing a sales funnel conversion rate or a sales funnel model for a specific segment of a customer journey. But your online business will definitively benefit from performing a Profit Funnel™ or full-funnel conversion optimization as well.

A highly experienced team of conversion experts can leverage both models when optimizing, instead of narrowing the view and hurting profits. An inexperienced conversion consultant will only see a siloed series of sales funnels, evaluate them independently and make decisions based on their own unique ROAS instead of their interactions.

Deliver double-digit sales growth every year, year after year. Increase revenues and profit. And shorten your sales cycle with our ecommerce and lead generation solutions.

Let’s review the key differences between sales funnel and full funnel conversion optimization or Profit Funnel™. We’ll begin with a great example of both models, a definition of a full marketing funnel. Finally, we’ll cover their differences in scope and the metrics used by each funnel.

Happy customers means returning customers. The starting point for full funnel conversion optimization is the customer blueprint and guess whose CRO audit services include a map of the customer journey for your online shop? Conversion Sciences.

Happy customers means returning customers. The starting point for full funnel conversion optimization is the customer blueprint and guess whose CRO audit services include a map of the customer journey for your online shop?

Example of Sales Funnel vs Full Funnel Conversion Optimization

Imagine an addiction treatment center that offers both low-cost at-home testing kits and treatment programs. Their at-home drug testing kit sells for $10, and it costs $5 to manufacture and ship. Their treatment programs start at $15,000.

They have an effective social media presence, paid campaigns to engage and attract their target market. And they also provide valuable resources for people with addiction problems and for their loved on their website. These range from informational articles to online quizzes to help find out whether or not one is suffering from an addiction and what is the best course of action.

Ok. Time to tackle sales funnel optimization. If they analyze their PPC sales funnel they will realize that it is costing them $20 in ad spend to convert each home testing kit sale. This added to the manufacturing and shipping costs may lead them to determine that this $10 sale is costing the company $25. But they are not looking at their profit margins, they are simply calculating Return on Ad Spend or ROAS.

Thus, they may decide to turn off the ad spend and stop this failing campaign because they “lose” $15 per sale. Or they may attempt to improve a Google Ads campaign that is already performing quite well.

But what if this addiction treatment center looks at the full-marketing funnel or Profit Funnel™ instead?

They would find that 20% of their customers have repeated their kit purchase every 3 months.

By the same token, they have not estimated the impact that their content development and social media efforts have on those conversions. And they were attributing the sale to the last touch-point.

As the buyer journey is not limited to a single channel, analyzing a single sales funnel could narrow your business focus and marketing assessment scope.

Moreover, this treatment center finds that 2% of the people who purchase their $10 test later sends a loved one to their center for a $15k treatment program. Those $20 in ad spend for each testing kit sale got the family to notice their services and inquire about their drug-rehab program. Therefore, for every 100 tests they sell, an average of 2 patients will join their treatment program generating a minimum of $30,000 in revenue.

Before I became the CMO, I was more focused on how we were spending our marketing budget than on how marketing could help drive long-term business objectives.But thinking like this holds businesses back. Marketing should be valued for its long-term potential, rather than its short-term efficiencies.

-Monty Sharma, CEO and CMO, Jenny Craig

So, What is Full Funnel Conversion Optimization or Profit Funnel™ Optimization?

As we have noticed, a full funnel evaluates the 360 degree customer journey with a company or brand. Its goal is not only to acquire a customer but also to understand, nurture and improve their relationship and experience with the brand.

It focuses on not only pre but post-transaction because it takes into account how this will affect the probability of increased number of subscription renewals or sales, lower customer rotation, lower customer acquisition costs, and increased profit margins.

As we can clearly see, even though it’s called a funnel, this model looks more like an infinite loop with many potential touch-points throughout the buyers journey, over time and across a multitude of devices and online/offline experiences.

Have you even thought of people interacting with your site or buying from you via Alexa? Full funnel analysis and optimization will deliver a more cohesive personalized experience to your online customer segments.

Have you even thought of people interacting with your site or buying from you via Alexa? Photo: Grant Ritchie via Unsplash.

1. Sales Funnel vs Profit Funnel™ or Full Funnel Optimization: Differences in Scope

One of the main differences between sales funnel and a full funnel conversion optimization is its scope. The oftentimes narrow span of a sales funnel is overshadowed by the number of elements or touch-points that a Profit Funnel™ considers.

Let’s check them out.

Single Path vs Infinite Loop: Are you optimizing for Omni channel yet?

The most evident difference between the sales and the Profit Funnel™ models lies in their reach. Highly restricted to a specific conversion path for the sales funnel versus a very broad view of the customer journey for the latter.

While most sales funnels are focused on a single transaction (such as a lead, sale or subscription) the full funnel or Profit Funnel™ acknowledges the entire lifetime of a potential customer or client. Its purpose is to allow us to take a step back and look at the entire customer journey or full marketing funnel and help optimize by what is most profitable without discarding the customer experience.

One Decision Maker vs Multiple Stakeholders

Have you been optimizing for a single decision-maker? Maybe you were leaving some marketing personas out of the equation. The higher the ticket price, especially for B2Bs, the higher the likelihood of having more than a single decision-maker involved in the purchasing process. Most companies will include different stakeholders’ input through the funnel and each one of them may further or delay that coveted B2B sale.

Sales funnel conversion optimization targets one person. Profit funnels recognize there is often more than one decision-maker.

Conversion Sciences Profit Funnel™ recognizes and accounts for this fact. Trying to optimize a single funnel to convert this lead is short-sighted, when understanding the 360 degree customer journey and optimizing for it, will significantly increase conversions and boost profit margins.

Single Device vs Cross-Device

We often find – when auditing a client’s conversion efforts – that their sales funnels don’t include mobile customers. Addressing this gap via mobile conversion optimization efforts has increased their profits manyfold.

The Profit Funnel™ recognizes the value of determining which of those platforms holds the highest potential for each particular conversion and finding a way to best optimize each path.

Sales funnels often focus on increasing conversions on a certain page on either mobile, tablet, or desktop. Thus, leaving out the reality that customers will interact with your brand, product or service in multiple ways and through as many devices as exist.

Have you even thought of people interacting with your site or buying from you via Alexa?

Full Funnel Conversion Optimization Enables a More Personalized Online Experience

The data-driven strategy of optimizing the full marketing funnel helps you identify consumer segments. Behavioral information can be collected in-store, online, and post-visit. The insights derived from this analysis helps you craft and deliver online personalized experiences to boost conversions and increase their contribution to your bottom line. All the while deriving insights to improving your marketing strategy.

“You are engaging with the consumer on an intimate level — they are telling you what products are interesting. That customer data is one of the most important things to grow your brand.” – Kate Kibler, Timberland’s VP of direct-to-consumer.

For high-traffic sites, Conversion Sciences offers the latest martech stacks – ML and AI-powered – via the Conversion Catalyst AI™. Our Conversion Catalyst AI™ builds a predictive model that identifies which visitors are ready to buy, and delivers the perfect experience so that they are more likely to buy from you. So you can deliver the most optimized experience be it on your website, on wearable devices, voice search, augmented-reality or any of the myriad of experiences the IoT brings us.

Full funnel analysis and optimization will deliver a more cohesive personalized experience to your online customer segments.

2. Sales Funnel vs Full Funnel Conversion Optimization Metrics

It’s hard to take a look at your full marketing funnel and try to gauge how well it’s working besides ROI and profit margins. But following those metrics without fully understanding which effort or efforts made the difference, is no way to run a business either. But lucky you. Full funnel is optimized with your bottom line in mind and a bespoke full funnel attribution will help you identify what’s helping and what’s hindering your conversions.

Therefore, the difference between sales funnel and full funnel conversion optimization is that you will end up concentrating your marketing spend on those efforts who bring in profitable returns. Much better than looking at a measly conversion rate. right? ;)

Sales funnel conversion optimization targets one person while Profit funnels recognize there is often more than one decision-maker.

Sales funnel conversion optimization targets one person while Profit funnels recognize there is often more than one decision-maker.

ROAS vs ROI

Are you narrowing your business focus down to sales funnels and conversion rates? Are you making decisions that affect your whole business by a simple ROAS? Or are you leveraging a 360 degree customer blueprint to improve your company’s profit margins?

Do you need your customer journey mapped? Check out Conversion Sciences conversion rate optimization audit services.

In the addiction treatment center example, when the sales funnel was not profitable (its ROAS was negative), they could have shut down the ad campaign. But when they looked at the full funnel (in-patient treatment registrations), the ad investment was profitable and it justified the initial losses in the funnel. It had a positive ROI.

Thus, by using both metrics, you can isolate those efforts whose ROAS may be positive but not their ROI, which takes into consideration not a single digitally advertised campaign but how each contributes to the business profit margins. And you can spare from killing efforts with negative ROAS because, in the end, their revenue-generating power is much larger than the one calculated from the revenue from ad campaign/cost of ad campaign.

By doing so, you change the focus to driving business performance, not just advertising performance.

Single Attribution vs Custom Attribution

Going back to the addiction treatment center example. There are things they do that contribute to their bottom line – such as informational blog posts, quizzes, etc. But their attribution model assigned the conversion value to a single Google Ads campaign.

People have several contacts with a brand before they even consider converting on that landing page, clicking on that PPC ad or that Instagram shoppable image. Which means that any and all contributions along the 360 degree funnel, or full funnel or Profit Funnel™ must be taken into account and their value toward each of the conversions (testing kit purchase, treatment) attributed properly to measure its impact on revenues and on profit margins.

While a single touch attribution model is a fast and simple way to allocate credit to a campaign, full funnel must use a bespoke or custom attribution model to understand what is working and what is not.

It’s common yet dangerous and naive to make assumptions about which touchpoint to attribute credit for a conversion. Oftentimes these assumptions are created from unrecognized personal bias and proven false through data analysis. This is one of the biggest reasons that analyzing all metrics is vital to a company’s long-term success.

The fight for online leads and sales has traditionally been fought at the search engine. That is changing.

Web analytics, bid management, competitive intelligence, ad testing and ad management tools are all common staples of any serious paid search effort. Return on ad spend (ROAS) is being tracked all the way through the sign up or purchase process and ad strategies are being adjusted accordingly.

Quietly, the battle for online leads is moving to a new front. This new front is measured by revenue per visit, and it’s kissing cousin, conversion rate. Like the tide that floats all boats, website optimization is being seen as the way to reduce all marketing costs by dropping the acquisition cost of new prospects and customers.

Why do we say this is happening quietly? That is the conclusion we came to when examining an unusual data set from SpyFu.com. We were able to determine which businesses had conversion optimization tools installed on their website. This, we reasoned, gave us a pretty good idea of which businesses would dominate in the world of online marketing — assuming they were actually using the tools.

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In this month’s podcast, based on the Marketing Land column Data Exposes Scandalously Low Adoption Of Conversion Optimization Tools, Brian the Conversion Scientist explores the usage of conversion optimization tools for two industry segments: Higher Education and B2B Software.

In one report, 73% of businesses are spending between $500 and $5000 per month on paid search ads. Almost a quarter are spending between $5000 and $50,000 per month. Yet, only 14% of businesses have at least one website optimization tool installed.

Who are going to be the winners in this new front? Where does your business fit in this statistic?

To get the most out of his column, download one of the free reports that share all of the data he uses.

In these reports you will learn:

  • Why your team needs time to review analytics.
  • Why businesses with smaller ad budgets should focus more on acquisition costs.
  • How to decrease your Search Ad costs.
  • Why you shouldn’t invest in social media sharing.

What kind of person is “good” at analytics? It’s time to change our opinion of what a “data scientist” is. If you are involved in the care and feeding of an online marketing endeavor, you have to be good at this “data thing.”

Fortunately, this doesn’t mean that you put on your lab coat and pocket protector and spend endless hours combing through data, charts and spreadsheets.

That IS the job of the data scientist. No, you are more of a data detective, finding data to guide your decisions in unexpected places.

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I outline the sources of what I call “unalytics” in my podcast 3 Refreshing Ways To Look At Marketing Analytics. Here are a few:

  • Salespeople and customer support people.
  • Live chat transcripts.
  • Ratings and reviews from your site or from Yelp.
  • Customer Relationship Management (CRM) system.
  • Do a study.

Check out the podcast or column for the full list.

In 2014, we declared Austin, Texas the Conversion Optimization Capital of the World. We will be updating our yearly list of Austin’s greatest conversion minds on CRO Day, April 9. Subscribe and see if you agree.

If Austin is the conversion capital of the world, it was a supernova of conversion optimization brilliance this past week when the Conversion XL Live conference was held here. Luminaries from around the globe converged here for a program that covered topics from landing page design to “bandit” algorithms.
I learned a lot.
Here were some of the highlights for me.

The Dame, The Detective and the Double-cross

The Detective BogartI used Humphrey Bogart detective movies to illustrate that conversion optimizers use a variety of data sources to determine what to test and what not to test.  The femme fatale will appear in the detective’s office and pose a problem. The salty detective will investigate, looking for clues. If he’s not careful, he can be double-crossed by the data.
[pullquote position=”right”]For a data detective, the initial hypothesis is the “dame’s” story. Of course, she is hiding something.[/pullquote] He must find clues to tease out the truth using alternative data sources. He can use post-test analysis techniques to make sure he wasn’t double-crossed by his data.
Some of the alternative sources I discussed were:
Aggregated Behavioral data like Google Analytics and AB Testing Tools.
Aggregated User Interaction data like click tracking tools and form-tracking tools.
Individual User Interaction data, like session recordings, ratings and reviews data and live chat transcripts.
Self-reported data, such as surveys and online feedback.
Customer knowledge, often found by interviewing sales and customer support people.
When you prioritize hypotheses that have lots of support in data, you keep yourself from being double-crossed by unexpected results.

Mobile Website Design

We believe that the mobile Web is like the desktop Web in the 1990s: we will look back and laugh at the choices we are making today.
Amy Africa has done a lot of testing on mobile websites, and gave us a flood of Mobile Web 2.0 tips. My notes were extensive, but some of the her revelations were surprising.

        

  • Don’t think in terms of pages. Think in terms of screens and scrolls.
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  • Make your “action directives” (action buttons, search options, etc.) big and bold.
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  • 80% of mobile success is having the right navigation.
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  • One third to one half of mobile visitors will use search. Design search results pages as if only three items will be seen.
  •     

  • Mobile forms are abandoned more often on mobile.
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  • Email is of even bigger importance with mobile users than desktop users.
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  • Social logins can reduce abandonment if done right.
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  • “Oversell the phone number” in the purchase process.
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  • Responsive design comes with a mobile performance hit.
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  • Transfer mobile visitors to the desktop by sending email or text.
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  • Email will make up for deficiencies in the mobile experience.

She introduced me to some new terms, including “donuts”, “spreaders” and “cart hoppers.”
It’s clearly an exciting time in the mobile world.

Predictive Analytics and Machine Learning

Matthew Gershoff introduced us to the world of predictive analytics and machine learning.
Optimization = Learning efficiency + Applying the “best” learnings
New tools, such as his company Conductrics provides tools that use the key ingredients of optimization.

        

  1. Setting goals
  2.     

  3. Sensing the environment, usually through analytics.
  4.     

  5. Having the ability to act and execute on learnings.
  6.     

  7. Observing outcomes.
  8.     

  9. Learning the decision logic of visitors.

These ingredients are the basis for machine learning.
He recommended courses on VideoLectures.com to get up to speed on machine learning and artificial intelligence.

Conversion Maturity Model

Brooks Bell was interviewed by conference host Peep Laja about the Conversion Maturity Model that defines how advanced an organization is with respect to optimization.
Her namesake company surveyed 300 companies, rating them on six criteria.

        

  1. Culture
  2.     

  3. Team
  4.     

  5. Tools and Systems
  6.     

  7. Process
  8.     

  9. Strategy
  10.     

  11. Performance

The executive sponsor at a company is key to the success of the optimization effort, she pointed out. Very true.

Conversion Optimizers from Everywhere

Austin truly was the Conversion Supernova of the World.
In from Vancouver, Oli Gardner of Unbouce took us through the rules of good landing page design. He provided us all with some free tools to help us evaluate our landing pages and forms.
André Morys runs one of the largest conversion optimization companies in the world. He’s both hugely entertaining and German.
Michael Aagard flew in from Denmark to share some of his most embarrassing testing mistakes and his triumphs.
Yehoshua Coren is a cross-cultural phenomenon as the Analytics Ninja from Israel.
Lukas Vermeer traveled from The Netherlands to share his conversion challenge game, So You Think You Can Test?
Michael Summers of Rockville, MD showed us the powerful insights to be gained from eye-tracking studies.
Anita Andrews showed us how using the wrong goal will result in poor testing decisions.
You should be at ConversionXL Live next year.
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The Brad Pitt Shuffle: we’d all like to think that our target market is pretty sexy.  It’s good looking, it has money, it has style.  If you’d like to keep up this charade because it makes you feel better, by all means.

When we try to sell to everyone, our message becomes confusing.

When we try to sell to everyone, our message becomes confusing.


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But if you’re ready to figure out why your marketing campaign isn’t working, it’s time to remove yourself from this little dance and turn yourself into the Digital Dr. Frankenstein you really are.  [pullquote]Use all of the resources you have at your disposal to create the ideal fake customer[/pullquote], and you’ll realize that you can target your campaign in a way you didn’t think possible.  Listen to a Brian’s keynote summary to get an idea of what we mean.
 
Brian Massey keynote overview from Conversion Hotel 2014 from webanalisten on Vimeo.

There are special visitors on your site right now. They blend in with all of the others in your analytics, but they behave differently from the others.

They visit more pages, spend more time, share more often and are more likely to buy from you.

Would you like to know them better?

Would you like to know how to treat them better?

Would you like to have more of them?

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Transcript

These visitors are your account holders. Some have bought from you. Some have not.

Account holders should walk around your site in their socks on the plush red carpet you’ve laid out for them.

  They’ve put forth more effort interacting with your site than your other non-buying site visitors because they’ve shown you buying intent.  And that’s a big deal for you.

In my Marketing Land column Use Google Analytics To Treat Your Account Holders Like Royalty I show you how to isolate these wonderful visitors and see how they behave.

What is tripping them up?

Where do they come from when they visit?

Do they respond to email?


21 Quick and Easy CRO Copywriting Hacks to Skyrocket Conversions

21 Quick and Easy CRO Copywriting Hacks

Keep these proven copywriting hacks in mind to make your copy convert.

  • 43 Pages with Examples
  • Assumptive Phrasing
  • "We" vs. "You"
  • Pattern Interrupts
  • The Power of Three
  • This field is for validation purposes and should be left unchanged.

People sometimes confuse us with robot-like scientists, being lead by data and caring little for the creative side of marketing.

Nothing could be further from the truth.

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I like to think that we can be more creative because we add a rigor to our creativity that allows us to try riskier things. If we have some data that says risky might work, we have a methodology through which we can confirm it’s effectiveness with a high level of confidence.

We backstop our creative with data, and this gives us a freedom that few designers and writers have.

In my new column Enhance Your Creativity Through Analytics I show you how we find data to backup or disavow our creative efforts.

Listen here or read it online.


21 Quick and Easy CRO Copywriting Hacks to Skyrocket Conversions

21 Quick and Easy CRO Copywriting Hacks

Keep these proven copywriting hacks in mind to make your copy convert.

  • 43 Pages with Examples
  • Assumptive Phrasing
  • "We" vs. "You"
  • Pattern Interrupts
  • The Power of Three
  • This field is for validation purposes and should be left unchanged.

We were very surprised by the marquee results of a TrustRadius survey on Conversion Rate Optimization.

While 72% of the companies surveyed have implemented some CRO processes, only 18% of them consider CRO as “Part of their DNA”.

We would speculate that many of these 18% of companies are in very competitive commodity industries, such as travel, office supplies, and pet apparel. In other words, they had to optimize or die.
These aren’t the only industries in dire need of optimization, however. While CRO isn’t a zero-sum game, you do not want to find yourself playing catch-up with your competitors. As this survey shows, CRO is a key competitive advantage online, just as SEO has been.
TrustRadius is in a unique position to conducted a survey of businesses. They offer some of the most helpful reviews of business software on the Web, and were able to get 4100 companies to complete the survey. This is statistically significant stuff.
Here are some of the highlights from their survey.

  • 58% of companies spend more than $10,000 per year on digital analytics, while 44% spend that much per year on A/B testing tools.
  • 59% of companies have plans to spend more this year than in the previous year on digital analytics tools, but only 48% plan to increase spending on A/B testing tools. Download the TrustRadius Buyers Guide to see what they are spending that money on.
  • The vast majority of companies (91%) use between two and ten digital analytics tools regularly.

Check out the full report now and then give Conversion Sciences a call to see what you can do to inject CRO into your DNA.

As Conversion Scientists, we obviously eat this stuff for breakfast.  We’ll show you how much money you could be making with our 120-day Conversion Catalyst™ program.  It’s free, and it’s invaluable.
Jump on a call with us at (888) 961-6604.  You’ll be glad you did.

Here we thought we were the only ones who loved a good periodic table. Data collected from Convirza based on millions of phone calls analyzed in the first quarter of 2014 answers the critical question: what are the differences between a converted call and a non-converted call?
McKay Allen shared the results from this study in this incredible infographic. Some interesting facts you will find:

  • Agents asked for the business 3x more frequently on converted calls than non.
  • Converted calls were 42% longer than non-converted calls.
  • Lead quality score was 65% higher on converted calls than non.

Please share and enjoy.
Infographic, Logmycalls, converted calls

The Elements of a Converted Call

Conversion Sciences shows you how to get phone leads in our free Webinar with Convirza.

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Call tracking is what happens BEFORE the call. Conversation Analytics is what happens ON the call.
The Convirza (formerly LogMyCalls) Conversation Analytics uses sophisticated speech recognition technology and hundreds of thousands of proprietary algorithms to extract data from phone calls. McKay Allen shared the results from those Conversation Analytics in this incredible infographic.
Some interesting takeaways:

  • If an employee asks for the business, the caller is 10.4 X likely to convert.
  • 46% of all sales inquiries are missed opportunities.
  • 6% of calls results in caller dissatisfaction.

Millions of calls are being processed by LogMyCalls. This infographic provides high level data about all of the calls analyzed in Q1. Enjoy and share!

Conversation Analytics: Data from Every Call Analyzed in Q1

Here’s a webinar that shows you how to  get quality phone calls with our webinar.
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