Seg vs GA: Comparing funnel and website analytics

As a marketer it’s pretty certain you use Google Analytics.

It’s the swiss army knife of marketing tools, used to handle a bunch of tasks to an acceptable degree.

But it’s being stretched past its core functionality, where the underlying tech of cookies and visitor IDs can’t easily cope. 

GA was created in 2005 when Google acquired a software called Urchin. At that point websites were a collection of static pages with online advertising being a new concept. So, all GA had to do was measure:

  • How many people were visiting a website
  • The source that took them to the site

With the growth of online businesses has come a growth in complexity, of the tasks that people are asking of their analytics such as cross-device tracking and complex sales funnels.

So, let’s look at each funnel stage and see where Google Analytics is still a great option and where SegMetrics is needed to maximize your revenue.

Google AnalyticsSegMetrics
UTM dataYesYes
Ad SpendOnly Google AdsYes
Goals completionsYesYes
BouncesYesNo
eCom flowsYesNo
Email interactionsNoYes
Webinar attendanceNoYes
On-site purchasesYesYes
Off-site purchasesIf IntegratedYes
Attribution window30 DaysInfinite
Subscription revenueNoYes
Repeat purchases (LTV)NoYes
Refund rateNoYes
Multi-purchase attributionNoYes

GA: Great at Top Of Funnel

Google Analytics is still great for analyzing your top of funnel.

It can measure who is landing on your website and how they navigate it. You can see whether people stick around after reading an article, the checkout stage that’s failing on certain devices or the goal completion rate of different sources.

So it is invaluable for the acquisition and activation stages of the funnel, for analyzing situations such as UI issues and website elements that stop people from buying.

SegMetrics is not designed to capture these details. 

It will record the UTM data and goal completions for people who complete actions like buying a product or downloading a lead magnet, but won’t collect data on people who never join your funnel

SegMetrics: Best for Middle of Funnel

Once a visitor has left the website they are of minimal interest to Google Analytics.

People get moved into an email marketing platform or CRM. These silos will ignore the context, rarely collecting context such as their original source / medium or the lead magnet that drew them to the mailing list.

GA will only be able to tell you that someone joined a funnel, with no way to see which visitors progressed through your email sequence or MOF activities.

SegMetrics can bridge these data silos.

By using person-based analytics, someone’s top of funnel information and middle of funnel interactions can both be connected to their contact ID.

You can begin to see details such as how prospects from different ad campaigns interact with your email sequence or webinars.

SegMetrics: Best for Bottom of Funnel

Google Analytics was not designed to measure long-term behavior.

It can be set up to measure purchases made on the website with some amount of multi-touch attribution. But, it is weak at tracking whether someone came back to make repeat purchases or maintained their subscription.

This is where SegMetrics excels.

Each person’s transaction history is tied back to their contact ID. Repeat purchases or off-site transactions will all be connected to them, whether they’re months or years later.

It will even record refunds and cancellations, so you can see which groups aren’t converting from a free trial to paid or are sending back items.

SegMetrics: Best for Multi-Purchase Attribution

Google Analytics can tie an individual purchase back to the handful of touchpoints that prompted it within a 30 day window.

But it can’t handle complex sales cycles or compare average lifetime value, while the data is a black box that will often disagree with other platforms.

SegMetrics lets you attribute someone’s lifetime spend back to the original source. SegMetrics users often discover that not all leads are made equal, that some sources or campaigns bring in customers that spend 3-4x times as much over their lifetime.

We call this multi-purchase attribution, the ability to look beyond where an isolated sale came from to see where all of your revenue came from. By connecting it to individual customers, you also avoid conflicting data between silos as you can see exactly where they came from.

Conclusion: Use GA for measuring website interactions and SegMetrics for holistic funnel analysis

We’re not going to say you should abandon Google Analytics. It is still extremely useful, we even still use it ourselves to measure behavior on our own site.

But if you are interested in more than just single immediate purchases, check out SegMetrics.

It can help with a variety of challenges, such as:

  • a long sales cycle from lead magnet download to sale
  • attracting repeat buyers, the 80/20 customers who spend the most
  • seeing where paying subscribers came from not just trial signups

If you are looking to maximize your revenue then grab a 14 Day Free Trial. It can import your historic data, so you can get instant insights without having to wait for numbers to flow in.

It also comes with a complimentary Kickoff Call, where one of our consultants will walk through your funnel with you to show you instant answers and help you get to grips with this new style of analytics.

Rylee Mathis

Rylee Mathis

Rylee Mathis is the Virtual Assistant to CEO of SegMetrics, Keith Perhac. She assists in the curation of DBO content and marketing as well as social media posts and partner outreach for SegMetrics.

How an online course entrepreneur found her funnel’s flaws with SegMetrics

Sam has an online music course that she has been running for 4 years.

The market has become increasingly crowded, so she had started running paid ads with the help of a PPC consultant, along with running a 30 Day Challenge.

Her funnel was fairly normal. She had a strong following with her free content on Youtube, where she occasionally promoted her lead magnets. Subscribers then went through an email funnel leading to a sales page for her paid course.

She was skeptical about whether she was getting a solid ROI from her campaigns. The ad platforms couldn’t give her reliable data about generated revenue, with Google and Facebook often conflicting and not matching up with her actual revenue.

Bad data meant she couldn’t be certain she was properly identifying issues in her funnel or successfully testing changes.

[Note: “Sam” is an amalgamation of various true stories from SegMetrics users, not a single person]

The plan of attack

Sam needed a reliable way to assess her whole funnel. She needed to know the ROAS based on lifetime value, with ways to test how each piece was affecting revenue.

SegMetrics let her do just that, with traceable data and multi-purchase attribution.

She decided that she needed to form a plan instead of jumping into the software with guns blazing. Her to-do list became:

  1. Optimize the web traffic to ensure that it’s profitable instead of burning money
  2. Maximize average order value (AOV) so she’s not leaving money on the table
  3. Improve retention in the middle funnel with relevant and engaging content

These are prioritized both by urgency and ease. The middle of funnel has the most moving pieces and can be the murkiest to optimize, so is best left until after the quicker wins of TOF and MOF.

With a plan in hand she was able to tackle these three challenges.

What’s my ROAS?

Top of funnel (TOF) is where quick wins are usually found, as there is great data waiting to be uncovered. The core goal is to ensure that every campaign has a positive ROI.

The core question was whether the $3k/month she was spending on ads was creating a positive return on investment. So, she looked at lifetime revenue from each campaign she was running.

Evaluating her 30 Day Challenge

Sam had a new 30 Day Challenge that she was paying to promote. Her PPC consultant was excited as it was bringing people in for only a $20 CPA, but was unable to say how that translated into money in the bank.

Google and Facebook were unable to track leads over the long sales cycle, while her customer data wouldn’t say how many of her sales were a result of the challenge.

With SegMetric’s Ad Report she could instantly see how much she made from people purchasing after the 30 Day Challenge… and the news was terrible.

She had an Ad Spend of $9,452 to promote the challenge, but the revenue from the attendees was only $1,700, meaning a loss of $7,752 and RoAS of only 18%.

Promoting her challenge was burning through money while making a loss. She immediately paused the campaign with plans to reassess the strategy.

Lesson: Number of leads and CPA are just a vanity metrics unless you can also measure the revenue from a campaign

Not all lead sources are created equal

She had also been running ads direct to her sales page on Facebook and YouTube.

On the face of it both were successful, with a Customer Acquisition Cost (CAC) of around $80. Some back of the envelope maths had given her a customer value of $125, averaged across all of her customers.

But, she had assumed that customers from different sources would spend similar amounts. There had been no way to compare how much customers from organic, video ads, display ads and social were spending, especially considering her program was a monthly subscription.

SegMetric’s Revenue Report was able to segment her contacts by source, showing how the customer value varied.

It showed an almost 3x variation between the most and least valuable customer sources!

She could see that customers from Facebook spent $180, but ones from YouTube only spent $60. So, a CAC of $80 for YouTube ads was losing her money.

Her top-level numbers had hidden this variation, so again she took a step back to find the issues before wasting more money on underperforming ads.

Lesson: Looked at overall averages can hide crucial variations that are secretly wasting your money

Finding the best upsell combinations

Bottom of funnel is all about improving conversions and average order value, through testing different sales pages or offer combinations.

Now that Sam’s ad budget was all allocated to profitable campaigns, she could focus on improving the AOV.

Over the years Sam had built up a small array of core products and potential upsells, downsells and cross-sells.  She had used her best guesses to match them up, but again there was no real way to test what decisions lead to the most sales.

Her sales data could tell her the total she had sold of each product, but not how different pairs performed.

Yes, you’ve guessed it, she took a look at the data in SegMetrics

It automatically showed how pairs of products were selling together based on the customer invoices. With a few clicks she had a table of how each order bundle was selling.

She could see that while the Essential Scales eBook had more orders, her Private Lesson Bundle lead to double the revenue due to the higher cost.

By focusing on this upsell Sam realized she could easily raise the AOV, which in turn would mean she could afford a higher CAC.

Lesson: Bottom of funnel is an undervalued opportunity for optimizing revenue, especially testing ways to boost the average order value

A way to finally analyze email sequence performance

Middle of funnel can be tricky to optimize due to the complexity, but the aim is to ensure it is maintaining attention and building the desire for the proposed solution.

Sam now had a profitable funnel, with good traffic and popular offer combinations. That gave her the headspace to give her email sequences attention.

The email platform gave her the usual metrics around clicks, open rates and revenue per email.

But like with ad revenue attribution, there was no inbuilt way to see how much a group spent after going through a particular email sequence.

For research purposes, she had been asking people about their musical experience when they submitted their email. She had wondered whether beginners and advanced students were equally likely to join her course, but again there had been no easy way to tell since customer data is in a separate silo.

So Sam went into SegMetrics to look at how these groups were moving through her funnel.

At an overall level she could see a gradual drop-off through her funnel as would be expected.

However the table revealed a few surprising details:

  1. Most of her leads were beginners
  2. Most of her revenue was from advanced 
  3. The beginners all dropped off around emails 3 and 4

She went back to her email funnel and saw that emails 3 and 4 are when she starts to introduce more nuanced topics which were clearly alienating beginners.

Sam realized she had to write a whole new email sequence for beginner that would keep them interested, while also finding ways to get a higher number of advanced students into her top of funnel.

Lesson: Viewing how different groups or sources move through the funnel can be a valuable method to find drop off points and opportunities for optimization.

Epilogue: And she funneled happily ever after

With her funnel stages all working together, Sam could finally stop stressing (as much) about her business.

She could see that her course marketing budget had a healthy ROI, while her funnel lead to a higher and higher LTV.

Sam even tried revisiting the 30 Day Challenge she had paused. The improved MOF and BOF meant that these leads converted far higher so the challenge became profitable.

Avatar

Keith Perhac

Keith is the Founder of SegMetrics, and has spent the last decade working on optimizing marketing funnels and nurture campaigns.

SegMetrics was born out of a frustration with how impossibly hard it is to pull trustworthy, complete and actionable data out of his client's marketing tools.

The iOS14 Update – What it means for digital marketers

As if 2020 wasn’t crazy enough, last June Apple announced that iOS14 would include a new App Tracking Transparency framework — requiring any apps that use cross-app tracking to show an opt-out prompt to the user, as well as limit the ways that apps can use tracking data internally.

The biggest impact of these changes are how it affects tracking and ad performance through Facebook’s mobile app, which is the number one way that most users consume Facebook content. In December, Facebook announced changes to their ad platform, which will take effect in early 2021, together with the “App Tracking Transparency (ATT)” prompt.

With any major change to the digital marketing landscape, there is a lot of hand-wringing and sky-is-falling rhetoric about what this means for the industry. 

But let’s take a closer look at what this means, not for Facebook, but for digital advertisers like us.

In a nutshell…

If you don’t want to read any further, here’s what you need to know:

  • This is a bigger deal for Facebook (the company) and ad-supported apps than it is for digital marketers. Apps (especially free apps) have been quietly supplying Facebook with demographic information for years. Those apps will now have to show what data they’re sending.
  • Facebook attribution windows will be limited to 7-day click. No more view attribution, no more 28-day attribution.
  • Facebook is limiting your conversion events to 8 events per domain. You’ll also need to verify your domains for those events before the switchover.
  • Facebook will be introducing a 3-day delay for all event data and metrics from iOS devices.
  • SegMetrics uses 1st party cookies and has our own lifetime attribution window. Our analytics data is not affected by any of the changes in iOS14 or Facebook.

There will definitely be long-term effects to these changes in the advertising industry, especially around targeted advertisement. However, the most immediate need is to fix your short-term attribution ASAP. If you’ve been delaying implementing attribution outside of Facebook, now’s the time to do it.

So, let’s look at what this all means, and especially what you need to do next.

Impact on SegMetrics

First, the big question we’re getting asked is “How does this affect SegMetrics?” — and that’s a very good question.

Not to be flippant, while these changes are a pain in the tuchus, this solidifies the importance of third-party tracking and analytics tools like SegMetrics.

Because SegMetrics uses our own 1st party proprietary tracking pixel, we’re not blocked by the majority of ad blockers, and aren’t affected by iOS’s 3rd-party cookie filters. And because our ad tracking uses our own data in addition to Facebook’s internal user identification, we aren’t limited by Facebook’s changes to their attribution window, conversion event limitations or delays in metric reporting.

That means that SegMetrics:

  1. Is not affected by any updates in iOS14
  2. Continues to track the entire lifetime conversions of your ads, not limited by the 7 day click window
  3. Has no additional delay in reporting
  4. Shows you every lead, click and customer that comes through your ads. Even months or years later.

Impacts on Tracking & Changes in the Facebook Algorithm

While ATT doesn’t affect many of us directly, what’s bad for Facebook can be bad for us, and in order to stay compliant (or just to mess with us — you can never be too sure), Facebook has made a number of changes to the ad platform that you’ll need to keep in mind.

Reducing Tracking Attribution Window

This change came into effect in late 2020, and reduces the attribution window of user tracking from 28 days to a maximum of 7. That means that the 28-day click-through, 28-day view-through, and 7-day view-through attribution windows are no-longer supported, but historical data will be retained.

This is definitely a challenge for Facebook advertisers, as the already considerably short 28-day window is now being reduced even more, which lowers the effectiveness of our advertising. However, as this is only for event tracking, using the offline conversion tracking features of systems like ActiveCampaign and SegMetrics, still lets you attribute purchases to users, even well after the 7-day attribution period.

In addition to shortening the attribution window, real-time reporting from the iOS app will no longer be supported, and data may be delayed up to 3 days. Fortunately, this applies only to Facebook’s internal tracking and attribution, and doesn’t affect any 3rd party click tracking systems like Google Analytics and SegMetrics that use their own non-app based tracking systems.

Reduction to 8 Conversion Events per Domain

In addition to the reduced Tracking Attribution Window, the reduction in number of valid events probably has the biggest impact on most advertisers. Starting in early 2021, you’ll be limited to configuring up to 8 unique conversion events per website domain, and any ad sets that you’re currently using that are optimized for events not in those 8 will be paused.

Companies that use more than 8 conversion events per domain should create a plan on how to work within the 8 event maximum. While many smaller companies use only a handful of events based on their conversion funnel, this creates an optimization issue for larger companies, as well as smaller companies that use the “one event per landing page” strategy of ad optimization.

Fortunately, this only affects Facebook’s internal reporting, and so by combining your ad performance with page views and other analytics data, you can still attribute multiple conversion events throughout the customer journey, and push that conversion data back into Facebook through offline conversion events.

If you have more than 8 conversion events, or need to specify which custom events are given priority when the switchover happens, you’ll want to verify your domain ownership in Business Manager. That will allow you to choose which conversion events are eligible for your domains, and make changes on the fly.

How iOS14 will impact advertising on mobile

The good news is that for most digital marketers, this is not an overall ban on cross-device tracking, and while we’re losing some features that have been useful in the past, the overall impact is much worse for Facebook than it is for advertisers.

> The biggest impact will definitely be on Google and Facebook. Ad-supported apps might be affected in that they presumably can’t target their ads as well.
John Knox, Principal Engineer ShiraTronics

What does ATT Do?

While it’s not commonly known to end-users, the majority of apps on the AppStore include the Facebook SDK. This is a major monetization vector for many apps — like those wonderful “de-aging photo apps” or the “weiner dog alarm clocks.” This gives app creators an additional revenue stream, and allows Facebook to track users as they move from one app to another, and also see what apps users have installed on their phones, increasing the amount of information in their Facebook advertising profiles.

In iOS14, when these apps include the Facebook SDK (or any other tracking system), users will get notified about how their data is being used, and what data the app is reading from the phone, including Contact Info, Browsing History, Identifiers, Purchases, etc.

At this point, nothing has changed about the ability of apps to track users — it’s simply notifying users of what data the apps are sending to Facebook or other corporate overlords.

The second limitation of ATT is that users will be shown a prompt the first time an app tries to  access the device’s internal advertising identifier. This will show up for apps that are displaying targeted advertising based on 3rd party data, when sharing your email with a data broker or any 3rd party advertising networks, or when you include a 3rd party advertising SDK in your app.

As we can see, the majority of changes are targeted at the advertising companies themselves, as well as apps that leverage those advertising SDKs as a revenue stream. If you’re an app developer who relies on that sweet, sweet in-app advertising — you’re going to have a rough time. However, for the majority of digital advertisers, there doesn’t seem to be a huge impact for us.

Going forward with iOS14

One of SegMetrics’ core beliefs is that your marketing data shouldn’t be controlled by a single black box, and you should always have access to the data that makes up your marketing reporting. Much like when Facebook single-handedly destroyed the digital video industry, relying on the data of the company selling you the ads is never a good long-term goal.

SegMetrics is always marketer-first, and always transparent about how we collect and report on your data. Because if you can’t trust the data, you can’t trust your marketing.

Avatar

Keith Perhac

9 Must-Have CRO Tools To Use And Track Results in 2020

Every marketer knows how important it is to constantly improve a website and track the results of your work. If you have a conversion funnel that isn’t as strong as you’d like it to be, there’s no room for hesitation. You’ve got to start working on improving it, and you’ve got to do it now. Working on your conversion rate optimization (CRO) is, therefore, a must. Luckily, anyone can do it with the right tools.

To help you better track and improve your CRO, we’ve put together a list of 9 best CRO tools you simply have to start using. They’ll help you improve your CRO, track your results, and make better choices. Just keep reading to learn all about them.

Let’s break them down one by one.

  1. Proof

Website personalization is a strong tool you should use to make sure each customer is getting the right information, landing pages, and CTAs.

Proof is a tool that can help you create a personalized experience for users based on their:

  • traits
  • online behavior
  • events
  • industry

You can add or remove images, change CTAs, hide or show certain elements and create the ultimate personalized experience for your visitors. You’ll be able to match your website to the users’ intent and reach your results faster.

In addition, you can combine this tool with SegMetrics to perform highly effective data analysis and learn more about your leads and conversions. This will be a long-term winning combination for your marketing strategy. 

It will definitely help you improve your CRO and get closer to your long-term improvement goals.

  1. Unbounce

Unbounce is a drag-and-drop landing page builder that can easily turn you into a pro website builder, with no coding experience needed. 

This CRO tool can help you design, test, and publish landing pages, testing them for different audiences, and tracking the results.

The key features include:

  • designing better landing pages
  • 100+ templates you can use
  • lead-generation forms
  • A/B testing
  • performance data

Unbounce has one goal, and that is to help you make pages that convert. And, if you combine it with a tool such as SegMetrics, you’ll be able to track the success of different landing pages and gather valuable data to make even better choices in the future.

Make sure to include it in your CRO strategy. 

  1. LeadFormly

As a marketer, you know how important it is to drive traffic to your website and create campaigns that will get you more leads. But, to turn those leads into actual customers, you need to walk the extra mile.

Think about the forms you’re using now and imagine boosting and upgrading them to a whole new level. That’s exactly what LeadFormly will help you do.

LeadFormly is a tool for building smart, interactive forms. Here’s how it works:

  • choose a template and edit it to fit your branding
  • build your own form
  • launch it and track the results

Better forms mean more conversions and improved CRO.

  1. Survey Monkey

Another important part of your CRO strategy is finding a better way to understand your customers and get valuable feedback from them. Creating a survey they’ll want to take part in is a major step that you can take with the help of Survey Monkey.

This tool will enable you to create, send, and analyze surveys and collect valuable feedback you can act on.

You can use the surveys to get answers to different questions you might have. Plus, they’re easy to export so you can gather data from different platforms and expand your reach.

With more valuable information, you’ll be able to improve your CRO.

  1. Google Page Speed Insights

Speed matters. Your page loading time can either make you or break you.

And while there are so many factors you need to take care of, your page speed is one of those you simply can’t neglect.

But, thanks to Google Page Speed Insights, you’ll get to:

  •  analyze the speed of your website
  • get tips on how to improve your speed
  • learn how to go from slow, to average, or fast

It’s simple to use, and it provides instant information. Even though it’s one of the less complex tools, even the biggest marketers use it to improve their speed and CRO.

  1. Pingdom

Another way to test your page speed and see where you stand on the speed scale is Pingdom. The tool is simple to use, yet it gives valuable insight into your current state of affairs.

With Pingdom, you’ll learn about:

  • load speed
  • performance of your pages
  • real visitors’ analysis

Pingdom will help you find the cause of your problems and understand what’s slowing you down. With a faster working website, you’ll have a lower bounce rate, and your CRO will improve significantly.

  1. UserTesting

Another goal that you simply have to meet if you want to improve your CRO is to gain a better understanding of your target audience and page visitors.

UserTesting is a tool that helps you collect different kinds of data: 

  • testing a user demographic like the one you’re targeting
  • gain insight into the customer experience

You’ll learn about your visitors and get ideas on how to improve different segments of your website, from the variety of topics to making proper design changes.

  1. Convertize

A/B testing is another important element of your CRO strategy. Convertize is a tool that can help you carry out top-notch A/B testing. 

This tool will help you:

  • create different versions of landing pages and  content
  • test their performance
  • draw conclusions

In case you need help with creating high-converting copies, these essay writers can give you a hand. Other than that, all you need is the right data and insight that Convertize can give you.

With better landing pages, your CRO will skyrocket.

  1. MobileMonkey

Finally, there’s one last asset of your CRO strategy that you should consider if you want to make better results. Adding a chatbot to your website can help you hit the bull’s eye.

MobileMonkey is a multi-channel chatbot platform that enables companies to proactively engage with audiences on their website, Facebook Messenger, SMS text messaging, and other popular web chat applications.

It allows you to message your followers on Instagram with your Messenger Chatbot.

You could use tools such as Subjecto or Top Essay Writing to create better scripts and ensure your chatbots are saying all the right things.

This tool will help you with lead generation, sales, and customer support. That means that the overall user experience of your potential customers will improve.

And that’s what you need for better CRO.

Final Thoughts


Improving your CRO is a demanding task that you have to invest the time and energy into mastering. Still, with the right guidance and powerful tools, anyone can do it without much trouble.

Use the tools we’ve listed above to turn your CRO strategy around and start making better results. Apply the ones most suitable for your business needs, and you’ll be more than happy with the results.

Donald Fomby

Donald Fomby

Donald Fomby is a self-taught content writer who’s enjoyed success with numerous popular blogs. Using his degrees in computer science and digital marketing, Donald writes quality articles and guides on marketing, UX, and SEO. Currently, he’s also a writer at ClassyEssay. Donald focuses on sharing useful knowledge for small and medium-sized businesses on how to manage their web presence and content marketing strategies.

The comprehensive guide to planning out and optimizing your marketing funnels

Weak marketing funnels can drag down a business. 

So of course, there are countless articles about elements such as improving open rates.

But we have found very few reliable guides that give a complete overview, that go from considering the reader’s stage of mind to putting the pieces together in the best possible way.

That’s why we wrote one ourselves.

It is a 110 page guide on building automated funnels, based on our experience working on hundreds of campaigns with everyone from Fortune 500s to SMEs to famous entrepreneurs. These are evergreen funnels designed to run continuously, without the need for slogging through one-off product launches.

In it you will learn:

  • Why automated funnels can be the cornerstone of your business (can you say “goodbye, launch model”?!)
  • How small improvements to your funnel can lead to a huge boost in earnings
  • Moving from vanity metrics to actionable data, numbers that enable great decisions
  • The “classic” 6-step marketing funnel and how to apply it to your business
  • How the “Hero’s Journey” is used as an essential format for email sequences

This isn’t some “lite” or watered down guide. It is the distillation of a decade’s knowledge from working in the trenches.

Even better, it’s under $10.

We want this knowledge to be easily affordable, not as a three-figure video course. That’s why it’s available as either a paperback or kindle book on Amazon.

The 90-Minute Guide to Building Marketing Funnels That Convert – Paperback edition

The 90-Minute Guide to Building Marketing Funnels That Convert – Kindle edition

If you’ve ever hit a hurdle with your funnel then go give it a read.

Zach Goldie

Zach Goldie

People are usually surprised to hear that Zach studied and worked as a mechanical engineer. Through life’s weird twists and turns, he then ended up learning to write sales copy. Enjoying the puzzle aspect, figuring how best to match up the reader’s motivations with the product’s selling points, he now leads SegMetrics' copy and marketing efforts.

A fairly awesome guide to finding your 80/20 customers

Marketers have become rather obsessed with goals and conversions. (And with good reason!) We take them as the benchmark of success, building whole strategies about those precious metrics.

But, they usually show a limited view into what is actually bringing in the big bucks.

We often measure trial signups or a one-off purchase. It’s a great start but leaves the vast majority of revenue as simply appearing out of nowhere. 

Data-focused marketing has one huge blindspot

A big issue that marketers face is the disconnect between measuring attraction and retention.

Reporting from ad platforms or google analytics can show you whether a visitor achieved the goals you’ve set up, but these must be kept limited. Goals typically have to:

  1. Happen online, such as detect if an enquiry happened, not whether the call lead to a sale
  2. Occur within a couple of visits, ideally happening on the same device within a few weeks
  3. Be a one-off action, such as looking at if they signed up but not how long they kept the subscription

We have become used to these short term indicators that our traffic is probably correct.

Which is fine if a company is aiming for a single interaction such as a one-off purchase. But if you’re aiming to attract repeat buyers or longterm subscribers then it’s just not up to task. It can tell you how many trial signups each campaign attracted, but after that all the sources get mixed into a single clump.

Most SMEs report that over half of their annual revenue comes from repeat customers

BIAKelsey

It becomes difficult to see where your biggest spenders came from, which means we can’t see where most of our revenue is coming from

Session based analytics can’t handle multi-purchase attribution

Marketing analytics is typically focused on what happens while someone is visiting a website.

This is fine until the cookie expires, the buyer switches devices or a transaction happens off the website. For example, website analytics won’t attribute later purchases to the original  source and won’t receive information from the payment process about subscription payments. So, only first-purchase attribution is possible.

Which is frustrating, because LTV is the best indicator of value in your business.

It’s like counting how many people come into a restaurant and ask for a table, but ignoring how much they actually spent, let alone whether they ever came back again.

A 5% Increase in Customer Retention can mean a 30% increase in company profitability

Bain & Company

So website analytics is good for examining your top of funnel to get that first goal or purchase. But it fails with long funnels or long retention periods, where a customer needs tracking over months or years to attribute multiple purchases back to a single source.

It’s a shame since attracting visitors who are even slightly more likely to become repeat buyers can have a big impact on profitability.

Valuable answers are hiding in your subscriber database

Marketing automation platforms are typically designed around email addresses. 

These are robust for longterm tracking (unlike browser cookies). You can identify purchases as coming from the same individual even if they were years apart, so long as they use the same email address.

Many email platforms such as Mailchimp Drip and Klaviyo will connect directly to your payment processor. That means the revenue can still be associated with the subscriber data, even if it was automated or within an app.

The real magic happens when you enrich that customer data.

You can probably store more data in your email platform than you are currently doing. The UTM of each subscriber’s initial source can usually be recorded, along with tagging them about how they have interacted with different touchpoints and the items they’ve purchased.

It takes a bit of doing, but can build a powerful customer database for your business.

Note: download our Ultimate Tagging Guide if you’re unsure how to tidy yours

6 ways you could use this 80/20 data

Having a database of your top spenders is useful just by itself. You can use it for lookalike campaigns or targeted remarketing. But, there’s a whole bunch of opportunities for using it to boost your revenue:

1) Compare the LTV of customers from each source

With enriched subscriber data you can finally see where your big spenders came from. You can break it down as far as you’d like, comparing general online vs offline or looking at individual ad campaigns.

2) Which emails are being read by the big spenders?

Open and click rates are useful, but it’s hard to measure the impact on revenue unless it’s aiming at a sale. Your database can tell you whether your most important customers are reading your emails or if it’s they only interest the freebie hunters.

3) Do certain products attract repeat buyers?

Just because a product gets the best immediate ROAS, doesn’t make it the most long term profitable. If you record each customer’s first purchase then you can see how the lifetime spend differs depending on what they bought first.

So you got a first purchase, great. Now what? Build up your tags to find out what are the most popular second buys and whether there’s a particular effective 1-2 punch to use in your remarketing or post-purchase emails

5) Did that popular blog post attract eventual buyers?

Content marketers rarely get the credit they deserve. Unless visitors make an immediate purchase, the revenue generated will often be attributed to other sources. This adds an extra reason to collect their email, as that way you can attribute the revenue correctly even if the transaction happens months after.

6) Which onboarding method is best at reducing your churn?

You can easily see which email sequence has the most interactions, but it’s hard to tell which one got folk to stick around. It gets even harder if you want to compare touchpoints like emails vs an onboarding video call, but with the right tags you can easily see how the LTV differs between tactics.

The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is just 5-20% – Market Metrics

Two methods to crunch the LTV data

Building up this information around your subscribers is great, but only if you can analyze it the way you want. So, you have two options:

Option 1: Pivot tables

You can assess the data in excel, although it takes some familiarity with pivot tables. Expect it to take an hour or two per metric, often involving some data exporting and combining.

As an example, let’s say you wanted to find an average time to first purchase, the workflow would be:

  1. Export your Leads & their creation dates (Or their tags and the tag application dates)
  2. Export your Purchases, along with the contact Id and the date the purchase was made
  3. Use a filter (or pivot table) to make sure that you’re looking at the first purchase that each contact made
  4. Then, use a VLookup to attach the Lead to their purchase, and compare the date the Lead was created to their first purchase date
  5. Finally, create a second pivot table that groups leads by the number or days it took them to purchase, and then count each of them

For more details, download our guide to calculating real lead value.

Option 2: SegMetrics

To manipulate the data in a few clicks, try out SegMetrics.

It connects to your email marketing platform, advertising tools and payment providers. That way it can automatically gather the data for each person going through your funnel.

You can then slice and dice the data any way you wish.

You’ll be able to look at the behavior of webinar attendees, the revenue associated with each upsell or the LTV of each source. These can then be saved to revisit as often as you’d like, without any need to redo your work.

“The majority of a band’s revenue comes from 10-20% of their fanbase” – Lucchese, Echo Nest CEO

TL;DR, SegMetrics lets you see how you attracted and retained your best customers

Stop relying on your website analytics to guide your funnel decisions. It is great for optimising your top of funnel, but it won’t help you improve the LTV.

Instead, enrich the data in your email platform. Record the UTM data and tidy up your tags.

You can then use SegMetric’s multi-purchase attribution to reveal the answers. You can see where your best customers came from to allocate budget accordingly, or see which mid-funnel activities actually improved retention.

Grab a 14-day trial to see for yourself.

Zach Goldie

Zach Goldie

People are usually surprised to hear that Zach studied and worked as a mechanical engineer. Through life’s weird twists and turns, he then ended up learning to write sales copy. Enjoying the puzzle aspect, figuring how best to match up the reader’s motivations with the product’s selling points, he now leads SegMetrics' copy and marketing efforts.

Building Marketing Funnels that Convert – in 90 Minutes

We know every business owner wants to know the secret to getting conversions out of your marketing funnels. But not everyone has the time to learn all the intricacies of marketing analytics. That’s why Keith has created a fool-proof, 90-minute guide aimed at helping you and your business build a marketing funnel that achieves real results.

In this book, you’ll learn:

  • Why automated marketing funnels are the bread-and-butter of your business
  • How optimizing your funnels can lead to a massive boost in sales
  • The 6-step “classic” marketing funnel and how you can implement it in your business
  • The three critical things you must measure to quickly optimize your funnels and get them to convert better
  • Why understanding the “Hero’s Journey” can be one of the most profitable things you’ll ever learn when it comes to email marketing

And much more.

Keith has taken over a decade of learned strategies for optimization and condensed it into one easy-to-read guide for his fellow entrepreneurs. You’ll be getting more conversions and in turn making higher profits in no time! He goes deeper into conversions than just email click rates (although still important!) and really helps you define your customer and each of their individual needs, resulting in higher satisfaction from your audience.

“And while feedback from your customers and audience is always valuable, it’s important to understand that people’s actions always speak louder than their words. This is why it’s so important to define and measure every step of your funnel!”

Get your copy and start turning a higher profit today: https://amzn.to/3jQPvgN

Zach Goldie

Zach Goldie

People are usually surprised to hear that Zach studied and worked as a mechanical engineer. Through life’s weird twists and turns, he then ended up learning to write sales copy. Enjoying the puzzle aspect, figuring how best to match up the reader’s motivations with the product’s selling points, he now leads SegMetrics' copy and marketing efforts.

Outsourcing Work Costs More than You Imagine

So, you’re thinking about offshoring your talent or outsourcing work.

You’ve read all the books and articles about how it can save your business money. You’re know you can get a great deal on overseas customer service reps, virtual assistants or developers. After all, labor costs in certain countries are mind-bogglingly low. It seems like a no-brainer.

But before you do, you should know the truth:
Offshoring isn’t as cheap as you might think.

The problem is, when people look at labor costs, they only look at the per-hour rate they’re paying. They don’t take into consideration all of the other expenses surrounding an overseas hire. This is a mistake we see time and again in our consulting business, and it can be solved by knowing just one simple number:

Total Cost of Ownership.

Continue reading “Outsourcing Work Costs More than You Imagine”

Avatar

Keith Perhac

Keith is the Founder of SegMetrics, and has spent the last decade working on optimizing marketing funnels and nurture campaigns.

SegMetrics was born out of a frustration with how impossibly hard it is to pull trustworthy, complete and actionable data out of his client's marketing tools.

How to Transform Any Product Into a Premium Product

Imagine if there was no difference in the quality of products you purchased.

You wouldn’t have the fun of buying clothes at a discount store or from a couture designer…There would be no difference in purchasing a Craigslist used car or a brand new luxury Lexus…And you’d get the same experience vacationing at a cheap hostel or a five-star resort. Continue reading “How to Transform Any Product Into a Premium Product”

Avatar

Keith Perhac

Keith is the Founder of SegMetrics, and has spent the last decade working on optimizing marketing funnels and nurture campaigns.

SegMetrics was born out of a frustration with how impossibly hard it is to pull trustworthy, complete and actionable data out of his client's marketing tools.