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In the past weeks, we’ve discussed a lot about monetizing your campaigns to help grow your ROI.
When we talk about success, we are referring to how many successful sales are made, and how many sustainable conversions were made. However, monetization is more than just about that first sale.
The goal of monetization is twofold:
1) Sell existing customers more things.
2) Try to keep existing customers satisfied with your offers so they stay customers longer, keep buying from you, and don’t refund the product.
As you build your campaigns (whether social media or email campaigns) you will absolutely need to gather data in order to properly assess how successful they are.
Retention & Monetization Key Metrics:
- Membership Retention Report: Is your membership program growing?
- Traffic ROI Report: Are your ads achieving ROI or are they fatiguing?
- Refund Report: Are your customers unhappy with your products?
- Monetization funnel conversion rates: How well are you monetizing existing customers?
Since we have already taken a look at how to measure and analyze paid traffic and how many leads are converting to customers, let’s take a look at the evaluation of refund rates.
The goal of the refund report is to inform you of:
- How much money you made.
- What products people refunded.
To gather this information, you will want to look at whether your offer matches the way you’re selling it (successful or not) or whether something is not programmed well (maybe not able to download the item.)
Our good and extremely knowledgeable friends at Digital Marketer use InfusionSoft software to run their refund reports. (And it’s also great for emailing, membership management, payment processing and CRM, etc.)
Without a proper report of refunds it will be more difficult to see exactly what decisions you need to make to adjust your offers. Refund reports help you sculpt your offers to better suit the needs of your customers or maybe even help indicate if a product is no longer relevant to your market. Ensuring that your customers are happy with what they purchased is a good way to make sure your buyers become multi-buyers instead of “oops, I don’t want those items.”
This process is very similar to measuring the monetization funnel conversion rates. That is, measuring how well your pulling in revenue from existing customers.
Funnel Conversion Rates
Using Google Analytics, you can pull in data about how many came in at the front (or TOFU). You will follow what purchases were made along each step
of the way. Once you have that information, look at aggregate conversion rates to obtain the overall conversion rate for the period.
For example, often the number declines because the offer went to many who already bought the core offer. It is specific information like this that will help you decide if it’s time for a new core offer. Customers that have already bought in are your best customers, so you don’t want to lose them because of uninformed offer campaigns.
Diving Deep into Retention and Monetization Metrics
Let’s take a moment to gather our thoughts and refocus on the important goals of retention and monetization:
- Turn buyers into multi-buyers: convince customers to make additional purchases.
- Leverage the existing relationships — if they like you they will be more receptive to making more purchases.
- Reduce customer churn: ensure customers stay engaged and on your list.
- They’re keeping an eye on you.
- They’re excited, aware of what you’re doing, and remember your name.
- Maximize membership value: ensure that service and membership customers stay longer.
- Keeping them a couple extra months represents a lot of opportunity
This is why the coveted concept of costumer lifetime value (CLV) is crucial to develop in your campaigns and analysis. The CLV is about how much your different audience segments are worth now and will be worth in the future. It is difficult to turn it into meaningful data in terms of defining and refining the group if you cast too wide a net. No one wants to spend too much time on a lot of data you cannot even use!
The goal of analytics like customer lifetime value is to figure out how much a specific subset of your audience is worth over a period of time. You can look at a specific group who took a particular action and you can look at purchases they made from the time they were converted or the time they made the purchase, up until the present day.
To do this, you should use a customer relationship management (CRM), like InfusionSoft. With this exported data make sure to include the following fields:
- Total purchased
- Total paid
- Number of invoices
- Average transaction value
- If someone joined a particular lead magnet, for example, you can figure out what would you expect them to purchase.
- Then look at how many opted in to determine how much the actual lead was worth
Let’s give you a comprehensive example with numbers to help drive the point across. We will use some metrics and data from Digital Marketer:
DM EXAMPLE FIGURES:
Total leads (opt-ins): 2,863
Total purchase value: 346.60
Total customers: 613
Leads to customers: 21%
- Out of those leads, 21% became customers.
- Take above rate and compare this to different lead magnets in the same period AND other periods to see how well you are converting leads throughout their lifetime average.
- Then divide: [total purchases (212462)] / [total leads (2863)] = $74.
- $74 is what every single lead is worth to DM over that time period.
- Therefore, DM can say they acquire these customers for $X.
- DM expectations: 10% to become immediate customers.
- The nature of the funnel structure is that at each stage more and more people will not take the next step
As you can see, this gives you a good sense of which offers, lead magnets, and trip wires are converting to customers and which are going to generate the highest lifetime value. There are many ways to slice and dice your data. But using the process outlined above for your analytics strategy will help leverage your informed decisions for your business. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row admin_label=”Row” make_fullwidth=”on” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on”][et_pb_column type=”4_4″][et_pb_post_nav admin_label=”Blog Navigation Section – Do Not Touch” saved_tabs=”all” global_module=”116279″ in_same_term=”off” hide_prev=”off” hide_next=”off” prev_text=”Previous Tip” next_text=”Next Tip” title_font=”Montserrat|on||on|” title_font_size=”20px” use_border_color=”off” border_color=”#000000″ border_style=”solid” /][/et_pb_column][/et_pb_row][/et_pb_section]