So to the point: traffic wasn’t an issue - what puzzled me was…
1) How to identify which one of these clicks actually signed up for the offer? and,
2) How does that Conversion Event close the loop in my Google Analytics to determine my Conversion Rate?
You see, I'm not really one to let these sort of things get the best of me. I was dead-set on being able to prove my efforts: Not only would provide me with the proof I needed, but it would increase my value and my ability to solve these problems for others in the future.
So, I dug into learning how to utilize this tool called Google Tag Manager to close the loop. Google Tag Manager allowed even a noob like me (read: not a backend developer) to easily deploy my conversion code to prove what was working and what was not.
The answer lies in Conversions.
I'm convinced that at the heart of any funnel lies the all-important Conversion. Now, as mentioned, a conversion can be a multitude of things as it depends on your sales process. Normally, a conversion would be: a purchase, a lead, a download, an app install.
Or, maybe you want to go really go meta and use several 'mini' conversions because you're a segmentation guru. For example, you could use scroll depth conversions on blogs to only retarget those who scroll 50% of the page, or fire click Events and serve up remarketing ads to only someone who clicks a specific button, on a specific page - all doable (and most of the time they're worthwhile).
Here's where the growth hacking and automation comes into play: A conversion (however it is triggered) can be used to automate the movement of a potential customer into the next segment of the sales funnel.
So why are conversions important when it comes to understanding a funnel?
A conversion is a critical element that allows you to segment your funnel and provides the most important data point for your ROI.
You see, knowing your conversion rate allows you to pour money on what’s working and allows also you the freedom to call an expiration date on any experiment.
Let’s say I’m growth hacking your business.
You have a $10,000 budget. How would you prefer I spend the the budget? Do you want web traffic or customers?
Of course you want customers.
“But clicks lead to customers, Jason.”
Exactly. So, let’s find out:
Which clicks generate the most leads, and
How often a lead becomes a customer.
That folks, would be your Conversion rate - the higher the rate, the better the traffic source. Moreover, knowing your high-converting traffic source(s) allows you to spend your time, attention, and ad spend on what's working.
You see, conversions and their corresponding conversion rate take the guesswork out of your digital growth efforts.
Plain and simple: If it's not converting, then it's not working. If it is working, then spend into that traffic source!
Ready to take the red pill?
Let’s talk money.
"A conversion (however it is triggered) can be used to automate the movement of a potential customer into the next segment of the sales funnel."
There are 5 data points of information I need to know to make your business money:
Cost Per Click
Traffic (Landing Page Views)
If you can find these 5 data points for a digital campaign - you’ll be able to know your immediate ROI or ROAS (return on ad spend). That means, you’re allowed to run lighting-fast campaigns/experiments without any guesswork on which marketing efforts are making the greatest impact.
Let me make this even more simple for you.
Below, you will find an ROI calculator that I use in my day-to-day growth hacking. It helps me identify the 5 points I mentioned above.
And, I want to make it FREE for you to use. Simply click the link below to the Google Sheet, make a copy, and start using your conversions to understand your ROI.
What is Growth Hacking? | Essential Skill 3: Tracking Parameters
Here's a sneak peak at Part 3:
"Now, before we get too excited about finding immediate ROI, we have to talk about tracking - because you won’t be able to properly track your traffic unless you’re using the right tracking parameters.
So, let’s talk about these things called UTMs..."
Hacktics | Growth Hacking Accelerator
Growth Hacking Accelerator a Growth Hacking course by Hacktics | I Help Growth Hungry Entrepreneurs Build Unstoppable Sales Funnels with Growth Hacking.
Growth Hacking Accelerator course outcomes:
1) Funnels + Growth Hacking
Scale and automate your time by building and selling automated sales funnels. They're trackable, predictable and run on autopilot.
2) Tracking + Traffic
Leverage paid ads systems to generate qualified leads in your sleep. Use ROI-rich tracking systems to prove the leads came from you.
3) Landing Your First Client
How to find business owners who are more than willing to pay you, which deliverables to pitch them, the contract to use and how to get paid online.
Built with a bottom-of-the-funnel-up mentality, Hacktics provides a framework and foundation for the growth hacking skill set required for today’s digital marketing.
Our role here at Hacktics is to provide an understanding and step-by-step implementation of these ‘technical’ components - and to help our students build a foundation of tracking and systems. With this base layer and framework in place, we then help our students build ROI-driven marketing and automation.