If the Middle of Funnel is all about converting visitors to subscribers and building engagement, the Bottom of the Funnel objective is to convert subscribers into buyers. The metrics we'll be looking at are all revenue-based because that's ultimately how we can determine how well our business is doing.
Before we dive into the key metrics to track in the BOF, let me cover a cover basic assumptions that I'm making:
1. I'm assuming you have Google Analytics (GA for short) set up for your site. It's okay if you're not using it, as long as it's tracking visitors, you should be covered.
2. I'm also assuming you're picking date ranges that work well for your particular business model. Some small businesses track metrics on a monthly basis, and other larger companies prefer to track metrics on a weekly basis. Whichever is the case for you, remember to stay consistent throughout the data collection process.
Let's take a look at three Key Metrics to help us track and analyze the Bottom of Funnel.
BOF Key Metric: Unit Types Sold / Total Product Revenue
This metric is pretty basic, and it's exactly what it sounds like, but surprisingly many of business owners don't take time to itemize, organize and track their offers and products on a regular basis.
Where & How to Find This Metric
The Unit Types Sold metric is a Total Count number, and we'll use your ECommerce or CRM to find it.
- Navigate to the area that displays your product / order reports
- Locate the total number of units sold for each of your products or offers within your selected date range
- Write the total number of units and corresponding total product revenue on your tracking spreadsheet
BOF Key Metric: Average Order Value
Average Order Value (AOV) is a really important metric because it helps business owners reach revenue goals faster by offsetting marketing investments like paid advertising through cross-sells, up-sells and discounts. It's the average dollar amount that each customer spends at your business.
How to Find This Metric
AOV is calculated by dividing your total revenue by the number of orders during a specific time frame.
BOF Key Metric: Revenue Per Visitor
Revenue Per Visitor tells us how much money is generated each time someone visits your website. This metric is important because it helps us gauge how much money we should be spending on paid advertising to acquire new customers. One thing to remember when you're calculating RPV: you want to use unique visitors, not visits. Otherwise your numbers will be skewed for this metric.
The reason this metric is important is simple: when we know how much each visitor is worth, we can make more accurate projections of how increasing TOF strategies will impact our bottom line.
How to Find This Metric
Divide total revenue by the # of unique visitors during a specific time frame to find the RPV for your business.
Final Thoughts on Bottom of Funnel Metrics
The Bottom of the Funnel metrics are probably the most important (and the most fun) metrics to track because they show how all of our marketing efforts are working. Remember, the objective of all BOF marketing is to convert prospects to buyers, and the metrics we track will give us information that we can use to make better business decisions that will help us scale, improve and grow the business.