Online Marketing: Conversion Optimization Funnel CRO

hey guys I have Alan Martinez here from noble digital you guys know him he's on the school progra he's gonna tell us a little bit about more about what he does I have no idea so there's gonna be a real treat I'm gonna learn something you're gonna learn something so let's check it out let me try this again I want you guys to listen to me yeah I designed sandwiches my name is Jose car yet and I talk about the business of this day it is I talk about a lot of stuff my name is Christo and I talk about the business of design at the center of this operating system it's about understand was it can we just tell them what the show tato is I hate you dude you are watching the process you guys recognize the sales funnel you guys have seen this before what's in a sales funnel sales funnel is just you know the journey between top of funnel to the bottom of the funnel which is like I've never heard of you - I'm kind of interested or what is this - okay I'll find a little bit more - okay I'll give it a shot - I'll buy it and then and then this is more about the money part but then the delight and referral part and people sharing we're gonna actually put numbers to this we're going to sign a number so cost per customer acquisition cost per customer acquisition to get someone to buy your serratus now your service if you don't mind me asking is like maybe break down yeah tears our most expensive products $1,200 that's core 360 right and then going down from that individual module sell for $500 then we sell a subscription annual subscription is 250 sub right then we sell a ib which is I believe $200 mm-hmm yeah B and then a monthly membership for 25 bucks okay so that's the lowest entry point yep and and below that is will do it's $0 it's YouTube right we're subscribing to YouTube yeah that's right what's that worth to you let's put a dollar figure on it one dollar let's put one dollar down okay one dollar what we're not selling that that you're not that's what we're paying to get it correct so there should be here well which aren't the value we're gonna get to the value okay all right but that that is like something that's a goal all right so the your goal these are your goals the most important goal is to make as much money as possible let's be honest here right so if we can't get asking me not hahahaha Hosea have fun and make friends as far as margins it's not like you've made a hard product that cost you five bucks to sell for ten bucks right so it's really a hundred percent margin you all the time you spent developing you still gotta get paid for that but let's just say for intents and purposes let's say it's free sure all right now what so what are your goals for this year to increase our monthly reoccurring revenue right now we're doing by 8k okay right that don't wanna get to this right here earlier so per month monthly reoccurring revenue mr r is about it came right now okay okay we want to get to 20k okay so I want to trigger you so by end of 2016 2017 we need to get to 20k okay so what else what's the next so here's the part and I'm going to share this is what direct marketers do they they go to a company yeah and they say how much how many do you want to sell in a year and like usually it's a bigger company they would say okay we have we want to sell a million units to make you know whatever ten million dollars right they would then say okay so that's our budget they would say that that is our budget two million dollar of ads spent to to go for it and what you're trying to do is get the CPA as low as possible the cost for acquisition so if you spend two million dollars and you make two million dollars right you broke even and that's that ideal so what all you're trying to do is drive down the CPA you're hoping that you're going to spend a million dollars to take make two million or hell $500,000 to make two million dollars it's never going to be zero obviously what it's going to be something that's somebody that's not what the people who your words the top where is this money coming from like where's ten or twenty or fifty percent of the money coming from look at what what person or city or yeah well I'll tell you the marketers from the data the single biggest threat traffic traffic driver is probably from YouTube on to our landing page right and the our audience is broken up like this it's us it's India and then it's the UK okay is your kind of an age group you're seeing that's standing out 20s or 30s or is it more seasoned people I would say it's late 20s to 40s somewhere in there and then we checked this is YouTube data then we compared to Shopify days and they set their tethered together right now yeah okay cool just manually though you know how we look at it oh there's no there's no there's no automates just don't chop it chop file you have a way to integrate your analytics so guys tip number one guys tip number one since we're using Shopify we want to tie our Shopify analytics to our YouTube analytics to see what patterns are happening right now we don't that's why I reached out to you and said somebody help me with some basic analytics creative videos right that's like top of funnel messaging branding message to get to the website that's the middle you know now they're interested right right and as you get to the IT stuff that's when you have like the data all the stuff has to go into buckets so you have like your java code right and your segmentation of buckets you you guys know what a bucket is it's basically the personas these are the personas yeah I want to start you have our personas we know what they are right but you know what they are from your limited data and then right then there's the marketplace speaking which is actually to tell you what actually is happening and then get to make adjustments according to actual data so it's like you're testing and the reiteration comes from oh wow it's like these people in India maybe we need to do something that has that kind of slant to it so people we can attract them or maybe they deserve their own video maybe bringing like an influencer from India to speak on one of your things and suddenly that lights up to Indian audience for example when you make those personas you can also challenge using data not like they're you know sometimes they're up pie in the sky like talking to a company they're a few months ago they're like hey this is our audience they really thought was this woman okay I asked the guy behind the counter who actually delivers the pizza I go so tell me I said he said that with me and he started tell me actually yeah yeah I would say he's like yeah I agree with that girls but when I get there there's always the guy in the sofa I'm like okay it's a couple like that's a different story now that helps me understand what the messages or maybe if it's a video maybe if it's common again it's a boy and a girl I mean it just leads to everything but it's all based on actual data these are lists these are some really big let's break these apart because this is a really big winners right these two well I'll tell you what our best sellers are yes our best sellers are here for personally percentage-wise energy-wise I would say a split between core and AIB all right let's make a new CPA or invent this one Christo how much would you spend to get someone to pay 1,200 bucks as much as possible as much as necessary as much as possible as much as necessary 50% 50% okay so we'll say 600 bucks that's the CPA for that for this one I would think they're all like about half I'd spend at i/o you be okay so we just a two-to-one conversion man yeah I'll do that all day night okay you would have urge all those together right yep 1200 plus 500 plus 250 plus 200 I'll leave out the g20 from now yeah leave out the youtube you've actually you'd actually have to add 500 three times because of three different products okay then you would divide that by one two three four five six seven seven divided by seven the number I came up with is not too far off 507 we'll just flat we'll make it 500 bucks okay what do you consider a lead they haven't paid yet YouTube was one of them right YouTube is an awareness but like we'll say if they get to the Shopify page okay I would consider a lead that's the data I'm looking at now so on average we get about 80 people hitting the Shopify page there's an email isn't there email oh look a newsletter yes so we chopped in newsletter and Shopify page is worth something if it gets that far YouTube and what else we got besides YouTube for awareness Facebook Facebook okay well we have Facebook you Instagram and Twitter and LinkedIn then this the usual social media or channel and I do that my fingers that's what's gonna fingers out working you to networking Twitter LinkedIn yeah so so we have shop I patience is there anything else for leads that you have there's no phone call obviously there's no phones or a chat thing actual chat box yeah people might instant message me I am I am in suspension me talk to me about stuff and I do sails that way so they reach out specifically asking about this you don't have in facebook you can message somebody directly okay that's what I'm talking when I am on Facebook okay this usually reach out to me okay and I forgot there's other things that we do we do lectures and workshops absolutely so that should be in there yep and we have press yeah we get pressed so we know that there's a spike where we do press or each other or we do cross channel promotions okay I put that up here too yeah yeah so will we or would we consider a trial I already have an idea what do you mean the next ones trial what do you I don't I don't know when you wrote that up there we don't have a trial a trial subscription does it feel like a trial to you it is that's why we created that yeah we created lowered cheers low tier otherwise now there's too much of a gap yeah that's true and we are finding out that when people sign up on this they very quickly buy a product what's the conversion rate on this please tell me I'm only gonna guess right now but I would say it's at least fifty percent really yeah that's amazing I see they do they buy and within 10 15 20 30 days they're buying something else they're probably gonna go in okay so don't have a sizable so fifty percent ten to 15 days oh okay let's just say 15 to 20 days okay sometimes they buy it in three days it's it's really weird because they just want to know that we're real so what you're talking about really that yeah I think so so these are two different cycles these are two different ends of people three day person in the 15 to 20 day person yeah do you I would say they're more on this side than they are on this side they're more than okay but okay so like 80/20 yeah who are these people the three days do you know anything about them yeah they usually business owners to already know us okay business owners that know you yeah or we referred by someone in you they know is through the community right okay it's not going to be some some kid in Turkey isn't so every everything there's everybody else then there's everybody else yeah so this is like the realistic cycle for the world for the global domination of school all right this is good this is good so I I want to cancel you do the writing it I want to consider monthly subscription your trial and anything else you want to well we've been thinking about that right any other ideas yeah that we have we're going to give sample Docs you can download some sample documents like open ones from the live form of the kids you just download them look at them so you know it's like 20 pages we'll give you the first 20 pages check it out it's legit that's it so we know it's white papers we call it away okay anything else that's all we got for well okay and then for delight and referral what are we talking about well how we delight the customer is the people that are brave enough to join us and share the decks we start to have real conversations and they're getting free business coaching for me often times when I'm driving I would just call up a random member whoever wants to give me their phone number I call them up I check in on them like I touch customer service from me and Jose okay because we're on the forums and we're commenting and giving people feedback all the time yeah that's how like that's your customer service yeah right sit yeah so from calls to emails to documents you get it yeah and how do we delight you you know what you make money our customers make money so if this is five hundred maybe we'll work our way up backwards so this is like 100 percent of what you'll pay and of course you can spend less screen how won't you pay for a trial of the 500 bucks how much you know would you pay for a trial a trial subscription of 25 bucks yeah what's it worth to you let me ask another question let me do this differently actually you know the cap forget about this of the people you said was fifty percent to do this I think about 50 percent who buy the subscription become customers so with 250 makes sense to get someone through trial to allocate some of that that's a lot though because they're going to buy probably aib or this um you're saying I'm spending half of it already well what I'm saying I'm trying to see it might be part of this whole CPA like this is like this stage just this stage alone to get to a purchase it's like part of the five hundred bucks I don't know let's say 200 bucks I just don't have a number okay because we're getting half of a half because we're spending half of our budget and only half of them are human birds so I have to kind of be mindful but well we talk what we're talking about here is it's a scale thing it's a scale issue and my question to you is like you know when you get to more users do you have other items to sell them with well you will I will great then you definitely want to scale okay so 50% we'll say 200 bucks so then what's the lead worth to you how much less awkward of course of course but how much well it depends on the conversion ratio dude what percentage of these these people convert to here what's a toll conversion rate use me sub one percent and now it's about 2.5 percent it's great that's that's the average actually that's good one percent in tip 1 5 2 to 3 percent is a preferred ecommerce sites in the world if you're both above that you're doing above crack you do really well if someone comes here to your website learns about you from YouTube out of 100 people how many people actually might be 25 bucks or really talk about thousand people two and a half percent okay out of 100 people to hit the Shopify page to two and a half percent or converting to buying something so the minimum they're going to spend $25 and sometimes they'll drop $1200 right the core 360 so what I'm doing here this is just the website Facebook has its own little funnel YouTube has its own funnel TV whatever going to do right everything has its own little funnel sure before they get to the website right and so you know this is what we can control the most this gets harder to control and that's the art of advertising and digital all that but I'm going to make this up so we're at 2,200 bucks and you were kind of not happy about that number either but I would say for a lead you should be low pay like oh no 25 bucks sure ish these we're making this up because we don't know but we I think we need to plug a number in just to start with and you'll know right like this doesn't work after time after we start pumping some volume up this mean this number might be too low or too high we'll know right away right now we don't really know so for awareness maybe it's worth 1 $1 to get someone to sign up right or it's worth that I don't even that or maybe 10 bucks it's 10 bucks too high a little bit maybe 5 but I would I would pay easily a dollar because if it means somebody who's going to go to and sign up for the newsletter or watch our episode and subscribe or something like that then it's worth it so once they purchase that is your CP so technically you actually if I have 500 bucks to work with here all right I understand so if 3 do these numbers you have 500 bucks to distribute per per person so that we're talking about 1 as they go down the funnel they're worth more right so how much per person maybe it's 300 200 and no it's got to be different than that maybe fifty hundred and then the remainder 350 so when I was right it's 54 awareness okay right you're seeing add all those up to be 500 right and then 100 okay and then 350 so yeah when you start getting someone down this funnel they're worth more and more and so maybe these things start becoming they should become more valuable to keep the flow going the point is it's like when we're spending money on media spend and they're clicking through to this point and then they're clicking through to here to this point and then the clicking through to download this like every stage we're going to be having drop off drop off drop off and now we're left with honor people or one hundred ten hundred thousand people and now we're down to like ten thousand now we're down to like a thousand and now we're down to like a hundred people when we're down here that's your 2.5 mmm so we have that means hope if he was the average 50% 250 if I want to XR a lie I have to spend half right by the way you might want to go up 100 percent are wondering why I can do that you might need to do that for a minute sure I I can leave that but I was just saying in the normal model yeah that's where we want look the reality is we want to start with the 500 bucks and drive it down to 250 overtime but we want to be everywhere and go okay that's not working this is working let's put more money here and we want to start just crunching this down here to start getting a metric set are performing okay this is performance takes time and money and you know alright and we can speed that process up as much as you want but as long as we're not losing money we can speed up even faster if you're below like if you're not if you're not upside down we should be increasing the budget every month yeah until it starts to break or fall apart or not make sense right okay let's review here so what you're doing is you're facilitating me in trying to figure out how to convert what it's worth etc down to very granular things so anything that's ecommerce especially it's going to be very attractive yes right he comes out where your strong line he comes all that's that's where your strong that's right because it's all data driven yeah other stuff it's like too touchy-feely we just don't know here's what I think if we had certified teams of specialists and I we can see your specialty conversion down here data conversion to equality call inversion funnel conversion funnel as a strategist for conversion yeah and then we have a strategist for social because somebody else out there is doing an amazing job we don't know and it's and then we're strategist for the brand top of funnel right and then if you get the lead you bring us in to do the top we get to leave we bring you in to do the conversion funnel right right that's how I see now how to use you what is it going to take so if it's Lance Mayfield if it's been burned so they get a good gig and they want to do conversion then want to bring you in to do this part of it what do what's what's the rate you can give me a ranging you me rate so that at least nine o'clock rounds like if the engagement is done of the size I cannot call LM sure what is that rate sure I would say five to ten thousand okay yeah maybe I'll needs to have some kind of quicker leaner version of this to demonstrate value here's how I look at how we've talked about this on the call before which is give them the Trojan horse give them something easy very attractive so you can get going because once you are in you can prove your value very easily right for example this is often how it goes I'll go meet with a prospective client you know they look at the deck we talk and they're like okay we're ready to do strategy with you and if I smell this is an e ecommerce play then I say okay well my strategy weights going to go up a little bit because I'm gonna bring you in just to do that part of it which is to facilitate it with me during the two days you come in on the second day because you need to be there for everything else yes I would brief you I'd give you the materials you'd come in you would run this part how long would it take you to do this part couple hours an hour so then what would you charge come in for that hour to and then go do your work and then come back and say guys here's the unified recommendations Chris you really need to recommend the design of the website this way because we know this this and that right what well is that still the same to five to ten um we can talk about that because it just depends on maybe there's a way for me to go in in a different way and not have to make a hole what are you thinking off the top of your head because I want to make twenty five hundred bucks five grand okay okay yeah simpler engagement let's say three so if you guys want to bring them in just for this now I'm not talking about all the other work cuz there's still a lot more work to do just to get started so that you guys can give me thinking all right maybe on a $12,000 engagement you can bring him in because if you're paying out three out of twelve that's that's about the threshold right a quarter of what you're bringing in because you still have to get paid for all the development of the time you spent so if you're at that point where you're looking at a 12 plus K engagement for strategy and there's an e-commerce component you can bring owl in for right now while it's still affordable for three K to run that with you and he'll do a little bit of homework of what does gather you guys have this unified team and you'll be a team of experts and I like that idea a lot all right guys thanks for tuning in hope this was helpful to you I learned a lot myself and there's a definite way that you guys can integrate what Allan is doing with noble digital into what you're offering and I think it's going to be valuable to your clients as well you

Channel: The Futur

Views: 48,468

Keywords: 2016, strategy, conversion funnel, conversion, customer acquisition, online marketing, digital, cpa, allen martinez, noble digital, al martinez, digital marketing, sales leads, sales funnel, user journey, customer journey, get sales online

Id: a6NDggNvspU

Length: 22min 15sec (1335 seconds)

Published: Fri May 13 2016