Engagement Funnel:
In general, most organizations spend more time and money promoting their websites through acquisition channels such as search or affiliate marketing than they do optimizing existing conversion rates.
In addition to neglecting the conversion process, we tend to think of conversion too narrowly as only converting existing site visitors in the, here and now. We often overlook applying marketing fundamentals such as identifying and defining profiles that comprise our larger target audience, developing the right offer and corresponding message, and delivering it to them at the right time in their purchase cycle. This can all be summed up with one word: relevancy.
Below are two conversion graphics: one is the traditional conversion funnel as we tend to think of it limited to our website. The other is a much more comprehensive view of conversion an engagement funnel where we instill relevancy into the conversion process by incorporating fundamental marketing processes and steps.
7 Steps to Increase Conversi on Engagement Applying Relevancy
1. Identify Conversion Goals & KPIs
2. Define & Acquire Target Profiles Apply 40/40/20 Rule
3. Organize and Optimize Site Structure
4. Develop a Compelling Message
5. Place Effective Calls to Action
6. Enhance Shopping Cart / Lead Capture Process
7. Test, Measure, and Refine
Volumes of books are written about these seven steps. Here, we'll discuss both principles and specific best practices, but won't cover all aspects of every step. If we leave something out, it doesn't mean that it isn't important we simply chose to summarize a best-practice guide and have highlighted some of the key points.
Identify Conversion Goals & Key Performance Indicators
Top Three Conversion Related KPIs
1. Leads or Customers
2. Sales
3. Costs
By applying each of these metrics to specific parts of the engagement funnel, we will effectively measure each step as it relates to overall conversion. In order to formulate the equation and apply each of these conversion-centric KPIs to the various parts of the engagement funnel, we place the conversion metrics in the numerator and the measures of the engagement funnel in the denominator as outlined.
KPIs per ad impression indicate performance at the ad placement level, which allow us to measure the effectiveness of our media buying and planning (audience and profile targeting) as well as the effectiveness of our messaging, creative elements, and most importantly, our offering within the ad. Instead of simply measuring the click-thru rate, which only measures the quantity of clicks per ad placement, we can measure the ad effectiveness as it relates to the rest of the conversion funnel in terms of leads, customers, sales, and costs.
How frequently do we misjudge an ad and believe that because the click-thru rate increased, that the overall conversion rate will, follow suit, and also increase? We can't always be sure; let's assume that we promote a give-away within our ad messaging and it increases the click thru rate, but once the visitor lands on our site, the giveaway isn't easy to obtain and it actually decreases the overall conversion rate. Measuring the ad-impression KPIs will allow us to manage and measure the engagement funnel from the top to bottom.
KPIs per unique visitors (or ad click thrus) indicate performance at the site entry level, which allow us to measure the effectiveness of our landing and home pages. We should substitute unique visitors with ad click thrus when we are receiving site visitors from a specific ad campaign and can tie it to a previous ad impression. In this case, we should be using multiple, specific landing pages developed in a relevant fashion for each specific profile (discussed later). In some cases, we don't know where home page visitors come from due to branding, word of mouth, or other untraceable sources and thus should use unique site visitors in place of ad click thrus (As a side note, the home page should be optimized for the largest profile or target audience group to maximize unique visitor conversion).
