In most B2B cases, analysis isn’t as cut and dry as tracking the initial conversion or revenue generated from the website. Further tracking must be done as multiple conversion points must be reached for B2B clients to finalize their sale.
We work with many B2B clients to analyze full-funnel performance on two fronts: developing a process to share conversion data throughout the funnel; and developing tracking parameters to monitor a multi-channel strategy. While optimizations are made based on lead CPA, we also analyze data throughout the funnel to make weighted optimizations. Let’s examine how this works.
Calculating multiple CPAs
With these clients, we develop CPA goals starting at the end of the funnel (final sale) and then working our way up the funnel based on historical CVR performance throughout the sales funnel.
For example, if we have a client that has a three-step conversion process, lead à opportunity à sale, we start with the necessary cost-per-sale goal divided into our budget to determine the number of sales needed. We then:
- Determine the CVR of Opportunities to Sales using historical 1st-party data to find the number of opportunities needed to hit our sales goal
- Then determine the CVR of leads to opportunities to find the amount of leads needed hit our opportunity goal, which should ultimately hit our sales goal
- We then arrive at our CPA for leads to track and monitor on an ongoing basis
Measuring channel impact
By establishing UTM parameters and leveraging third-party data tracking outlets, such as Marketo or Salesforce, we are able to track how our leads perform throughout the conversion funnel. This enables us to see the effectiveness of every channel’s ability to drive quality leads at our target CPA and conversion volume goals throughout the funnel. Based on this data, we make adjustments to our CPAs as we typically see CVR performance throughout the funnel change from how it previously performed as we drive a higher volume of leads.
Lastly, based on the product and/or service, we also monitor each channel’s impact at the account level to drive lead volume. We do so by monitoring first-click conversions and, at times, view-thru conversions as we implement upper-funnel initiatives. Based on asking price, there typically needs to be many brand touch-points to drive a prospect/lead down the conversion funnel. This starts at a prospecting level via Native, Display, or social outlets, combines with search, and leverages an impactful mid-funnel remarketing strategy designed to drive prospects from awareness to sale.
Ultimately, attribution models will also have a say in measuring impact, but that’s a story for another post. What are some of your tips for full-funnel measurement for B2B marketing campaigns?