Key to Success: Use Metrics to Closely Monitor Your Marketing Funnel and Control Budget Burning
In this new media era, advertising seems to be easier thanks to its high interactivity, low cost, and precious user positioning. But is this really the case? Companies are in urgent need to measure the effectiveness of an advertising campaign, that is, the conversion rate.
- “What is the peak time for your ad clicks and conversion? ”
- “What is your user persona? Which age group is more likely to place an order? ”
- “Which landing page is the most attractive? ”
To address these issues, we need to focus on the conversion rate at each step of our advertising process. If we can view our ad performance data from multiple perspectives, we will be able to identify the factors that are influencing our conversion, review our ad campaign, and ultimately increase the return on investment.
In this blog, we want to talk about a company that recently increased its volume and budget on advertising, but see no improvement in its total order quantity.
First, we will use Kyligence Zen to illustrate how to create key metrics around conversion volume and then identify the options to improve ad conversions, to help companies adjust the promotion plan.
We use the dataset from Sales Conversion Optimization (author: Gokagglers) as an example to analyze the advertising and marketing data of a company. The data set has been modified for demonstration purposes.
Create key metrics around conversions
Prior to data analytics, we choose to upload our advertising and marketing data on the ‘Data’ page of Kyligence Zen.
We want to analyze from perspectives of advertising time, advertising platform, campaign type, and user information, so we will create the following metrics:
The Metrics for Ad Serving Based on Conversion Funnel Analysis have been published in Kyligence Zen Metrics Template market. You may click the link and reproduce the use case in your own Kyligence Zen account.
Make a Quantified analysis of the marketing funnel and identify the points for improvement
Different stages in the marketing funnel are tightly intertwined. We want to quantify the data performance of our ads in each stage to make targeted plans on how to improve the conversion rate. With this in mind, we have created the following goals and correlate them with corresponding metrics. Different Team members can monitor progress by observing real-time data changes.
As shown in the figure below, the conversion rates have exceeded our targets, but the metric of total clicks is small despite of the exposure volume. We can thus conclude that the total clicks has affected our conversion rate. In this context, we need to pay attention to whether the ad itself is attractive enough, and whether the user group is precisely targeted.
Choose the right advertising time
We have just discovered that the bottleneck in the marketing funnel, that is, the total clicks. Next, we’ll use the Dashboard to perform an in-depth analysis of this issue. For instance, we created the following report to analyze user gender and click-through rate in each time period in a comprehensive manner, as shown in the figure below:
We can see those male users obviously have the highest click-through rate at 17:00 and the lowest click-through rate at 20:00. Based on this, we can increase the advertising placed at 17:00 and reduce those placed at 20:00, then track the changes in click-through rate for continuous improvement.
Reach your target customers to increase conversions
Let’s take the user persona to explain this point. We can further improve conversions if we can reach the right audience. So far, we have analyzed the contribution of user age and their interests to the conversion rate, as shown in the figure below:
As can be seen from the figure that users aged from 35 to 39 have the highest interest in Product 31, with a conversion rate close to 100%. Therefore, we can try to target users of this age group. However, there is no conversion rate data for users in this age group for product 104. Therefore, we need to reduce the relevant advertising investment.
For product 102, the conversion rate is really low. We can give this feedback to the content designer to see if visual design can be improved.
Now, we can answer the question at the beginning of this blog. We shall adjust the company’s advertising plan in a timely manner based on analysis results, instead of just effortlesssly buring our budget. We can also invite more team members to jointly analyze and discuss the next advertising plan and continuously track the performance and make timely adjustment.
The Metrics for Ad Serving Based on Conversion Funnel Analysis have been published in Kyligence Zen Metrics Template market. You may click the link and reproduce the use case in your own Kyligence Zen account.
