How SegMetrics Fed Dr. Axe Insights for A Healthier Product Development Roadmap

SUMMARY

The Client
Axe Wellness (draxe.com) is one of the most successful health blogs around. They offer a ton of actionable advice. They have well-tested and high-converting lead magnets that deliver their users high-impact content on fitness, natural remedies, diet and overall health. The problem is their team had no way to measure lead value… just lead volume.

So while they knew how many people were downloading each lead magnet, they couldn’t tell which leads were actually most likely to result in sales.

How They Used SegMetrics
Axe Wellness integrated SegMetrics with their existing InfusionSoft account to determine the value of each of their lead magnets. This not only provided insight into where existing revenue came from, it also provided unprecedented insight into which categories might be ripe for new product development.

The Results
With just a few reports in SegMetrics the Dr. Axe team was able to finally evaluate which segments of their user base were most profitable. This led them to discover that lead magnets which had previously been overlooked, because they brought in few leads, were actually bringing in the most revenue. That, in turn, led to strategic changes in their new product roadmap to better take advantage of market opportunities.

The team of marketers at Axe Wellness know their stuff — they’ve successfully and strategically created an automated marketing machine, offering 4 key ebook downloads for their audience.

When a new lead downloaded a specific ebook, they would then be tagged within the company’s InfusionSoft account with a corresponding tag and receive a drip email marketing campaign.

For example, if a lead choose to download the company’s ebook on Essential Oils, they would then be entered into a drip campaign with additional content about essential oils, then would be pitched on a paid product also related to essential oils.

Each time they introduced a new lead magnet, they saw a corresponding rise in their bottom line… but they were unclear on which lead magnets were actually generating the most revenue.

That led Axe Wellness to SegMetrics.

Within minutes they were able to unlock key data that would fundamentally change how they tracked their business — and how they planned to run it.

A Look at the Axe Wellness Marketing Strategy

DrAxe.com uses a traditional content-based marketing funnel, sharing useful articles for free on the site and then encouraging readers to download additional information in exchange for their email address.

After receiving their free download, readers are then tagged within their InfusionSoft system as being interested in content on that topic, then entered into a related email marketing drip sequence that ends with a pitch for a paid product.

Once each funnel is created, the entire process is completely automated.

This enabled Axe Wellness to see how many people were downloading each lead magnet, but they couldn’t tell how much those leads were actually worth — or easily track how many would convert into sales.

Further complicating the issue, different products are offered at different price points making it even trickier to determine lead value.

Seeing The Value of Lead Magnets for the First Time

After signing up for their Free Trial of SegMetrics, the Dr. Axe team was able to see the value of their lead magnets for the first time — and, because SegMetrics pulls in data from existing tags, it’s able to leverage data from before it was installed.

The results?

The Axe Wellness team could now tell which downloads were generating the most revenue and which leads were most valuable at a glance.

New Insights for a More Strategic Product Development Roadmap

After looking at the data above, the Axe Wellness team noticed something interesting.

During the given timeframe, 20,720 New Leads were tagged with “Essential Oils”. Of those 20,720 New Leads, 1,282 were Buyers; that means that the conversion rate from Lead to Buyer is 2.88%.

Those 20,720 new leads generated $263,794 in revenue. That gives them a average lead value for leads who download the Essential Oils ebook of $12.73.

If we compare those numbers to their other segments we see that “Health” generated 12,687 new leads, with a Lead Value of $11.72 and “Fitness” generated 4,136 new leads at a lead value of $18.82.

Finally, “Recipes” generated 9,055 new leads at the highest average value per lead, with an average value of $19.26! This means that each “Recipes” lead is worth 64% more, on average, than each “Health” lead despite the “Recipes” category generating 3,632 fewer leads.

By clicking on each of these tags we can begin to see why this is the case.

A look at “Essential Oils” leads shows that they are most likely to buy the “Essential Oil Transformation Program,” which is a $47 product.

However, sales from the “Health” and “Recipes” segments come from the “Healing Leaky Gut Program,” which is a $147 price point. So while the “Health” and “Recipes” lead magnets don’t necessarily convert more people to sales, they convert people to the sale of a product that is worth three times as much — thus the higher Lead Values.

The Axe Wellness team would never have noticed this without SegMetrics — and data like this is why it’s important to look beyond leads growth when measuring the success of your marketing automation.

As in this case, it’s possible for one lead magnet to bring in more leads, while another actually generates higher value leads.

“Mind. Blown,” said Evan Tardy, President of Axe Wellness, after seeing this data. “This will definitely impact our product development.”

Next Steps: From Data And Insights To Real Action

Using these new data points, Axe Wellness is better prepared to make strategic decisions for the future of the company.

Looking at the data they’ve gained from SegMetrics, they can now develop a premium product for their Essential Oils marketing funnel, and track whether that leads to a boost in lead value.

Because Essential Oils generates the most New Leads, boosting the Lead Values could have a massive impact on the bottom line.

And in the meantime, while they develop the new product, they can focus on bringing in more leads for Recipes and Health. Because these segments have the highest average lead value, new leads in those categories have the potential to generate a significant amount of new revenue, without any chances to their product offering.

This is our end-goal at SegMetrics. We provide the data and insights that allow Infusionsoft companies such as Axe Wellness to make game-changing business decisions.

Interested in finding out the true value of your leads and getting the real data on how your products marketing is doing?