{"id":2555,"date":"2018-06-12T08:00:29","date_gmt":"2018-06-12T12:00:29","guid":{"rendered":"http:\/\/creativethirst.com\/blog\/?p=2555"},"modified":"2023-12-03T17:02:51","modified_gmt":"2023-12-03T21:02:51","slug":"sales-funnel-kpi","status":"publish","type":"post","link":"https:\/\/creativethirst.com\/blog\/sales-funnel-kpi\/","title":{"rendered":"Sales Funnel KPI, Key Performance Indicators For Success"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">What are your <strong>sales funnel KPI<\/strong>, key performance indicators?<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s a question every marketer must know, but what is a sales funnel KPI? Put simply, they are metrics that measure the health of a sales funnel in terms of the business bottom line.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They answer the question: How much money do you spend on bringing people into your sales funnel vs. how much money you get out of a sales funnel?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The money you spend bringing people into your sales funnel typically includes just your expenses for ad traffic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The gross profit you generate from a sales funnel typically includes profit from both the<a href=\"https:\/\/creativethirst.com\/blog\/the-big-difference-between-the-front-end-and-back-end-sales-in-health-supplement-marketing\/\"> front-end and the back-end<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Front-end profits come from direct sales in the funnel itself, including all up-sells and down-sells within that sales funnel. <span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Back-end profits come from sales outside of the initial customer acquisition funnel. This includes other promotions and repeat or recurring sales, including the lifetime value of the buyers from your initial customer acquisition funnel.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Your Sales Funnel KPI Dashboard<\/b><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Just like you can\u2019t fly a plane without looking at the gauges you need a sales funnel dashboard to keep you from crashing your profits into the ground.<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But, what sales funnel KPI should you be tracking? Understanding the basic sales funnel KPI numbers will get you started quickly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key metrics for a simple funnel dashboard include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Conversion Rate (CR)<\/li>\n\n\n\n<li>Average Order Value (AOV)<span class=\"Apple-converted-space\">&nbsp;<\/span><\/li>\n\n\n\n<li>Return On Ad Spend (ROAS)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s look at each one\u2026<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>What\u2019s Your Sales Funnel Conversion Rate?<\/b><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Conversion Rate is calculated as:<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CR = Total number of sales \/ Total number of visitors x 100<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is your basic conversion rate calculation. It\u2019s expressed as a percentage, which is why you multiply it by 100.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You have a conversion rate for each page and offer in your funnel.<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example your front-end offer may convert at 0.85% for cold traffic. And your first up-sell may have a conversion rate of 7.0%. Each up-sell in the funnel will have it\u2019s own conversion rate. It\u2019s important to know the conversion rate for each step.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This metric is important because it tells you trends over time, and also sets the pulse of your funnel. When you want to know how well you\u2019re selling this is the one metric you\u2019ll look at. <span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>What\u2019s Your Sales Funnel Average Order Value?<\/b><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Average Order Value is calculated as:<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AOV = Total revenue generated from the entire funnel \/ Total number of orders from the front end of the funnel<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This metric is important because it lets you know how well you\u2019re monetizing new customers from your sales funnel.<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The higher the average order value of the funnel, the more money you\u2019re making out of each new buyer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>What\u2019s Your Sales Funnel Return On Ad Spend?<\/b><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Return On Ad Spend is calculated as:<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ROAS = Total revenue generated from the entire funnel \/ Total dollars spent on advertising traffic x 100<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Return on ad spend is basically the amount of revenue you get for every dollar spend on advertising.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This metric is important because it measures how well your advertising is working. The higher your return, the more effective the ad source.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you spent $1,000 on traffic to your sales funnel in one month, and during the same month your sales funnel generated $300 of revenue, then your ROAS would be:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">300\/1000 = 0.3 x 100 = 30%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, for every dollar spent on advertising, you get $0.30 in revenue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Your Sales Funnel Dashboard KPI<\/b><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You can\u2019t steer the plane if you don\u2019t have gauges.<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your Sales Funnel Key Performance Indicators are measurable values that quickly show how effectively your sales funnel is achieving the business objectives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without knowing your numbers you can\u2019t scale or even know if you\u2019re wasting too much money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even if you don\u2019t go deeper than the basics, these three metrics (conversion rate, average order value, return on ad spend) will guide your business decisions and lead to growth.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"375\" src=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/revenue-ceiling-250.jpg\" alt=\"\" class=\"wp-image-5168\" style=\"width:190px;height:auto\" srcset=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/revenue-ceiling-250.jpg 250w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/revenue-ceiling-250-200x300.jpg 200w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>Breakthrough The Supplement Revenue Ceiling<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This diagnostic reveals the specific bottlenecks limiting your supplement brand&#8217;s revenue growth and provides a clear optimization pathway for breakthrough.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-left is-layout-flex wp-container-core-buttons-is-layout-63375db1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button aligncenter is-style-fill\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/creativethirst.newzenler.com\/f\/break-through-the-supplement-revenue-ceiling-1\">GET YOUR DIAGNOSTIC<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-4fc3f8e1 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/hsbm.buzzsprout.com\"><img loading=\"lazy\" decoding=\"async\" width=\"392\" height=\"380\" src=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/health-supplement-mastery-podcast-logo.png\" alt=\"Health Supplement Business Mastery Podcast\" class=\"wp-image-4566\" style=\"width:194px;height:auto\" srcset=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/health-supplement-mastery-podcast-logo.png 392w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/health-supplement-mastery-podcast-logo-300x291.png 300w\" sizes=\"auto, (max-width: 392px) 100vw, 392px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Listen to the <a href=\"https:\/\/hsbm.buzzsprout.com\" target=\"_blank\" rel=\"noreferrer noopener\">Health Supplement Business Mastery Podcast<\/a> for for dietary supplement entrepreneurs and marketers. <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/podcasts.apple.com\/gb\/podcast\/health-supplement-business-mastery\/id1501188717\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"150\" src=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/apple-podcast.png\" alt=\"\" class=\"wp-image-4567\" srcset=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/apple-podcast.png 400w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/apple-podcast-300x113.png 300w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/open.spotify.com\/show\/6tzo0If1DvE5QMJaAPjrRY\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"373\" src=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/spotify-podcasts.png\" alt=\"Listen to the health supplement business mastery podcast on Spotify\" class=\"wp-image-4569\" srcset=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/spotify-podcasts.png 1000w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/spotify-podcasts-300x112.png 300w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/spotify-podcasts-768x286.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/feeds.buzzsprout.com\/889189.rss\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"260\" src=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/google-podcast-1024x260.png\" alt=\"Listen to the health supplement business mastery podcast on Google Podcasts\" class=\"wp-image-4568\" srcset=\"https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/google-podcast-1024x260.png 1024w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/google-podcast-300x76.png 300w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/google-podcast-768x195.png 768w, https:\/\/creativethirst.com\/blog\/wp-content\/uploads\/2023\/11\/google-podcast.png 1072w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What are your sales funnel KPI, key performance indicators?&nbsp; It\u2019s a question every marketer must know, but what is a sales funnel KPI? Put simply, they are metrics that measure the health of a sales funnel in terms of the business bottom line. They answer the question: How much money do you spend on bringing&hellip; <a class=\"more-link\" href=\"https:\/\/creativethirst.com\/blog\/sales-funnel-kpi\/\">Continue reading <span class=\"screen-reader-text\">Sales Funnel KPI, Key Performance Indicators For Success<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2651,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2555","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-conversion-rate-optimization","post_format-post-format-gallery","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sales Funnel KPI, Key Performance Indicators For Success<\/title>\n<meta name=\"description\" content=\"Your Sales Funnel KPI, Key Performance Indicators are measurable values that 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