It’s often the case that clients come to me with a problem.
But often when they tell me their pains and I ask them how they KNOW that’s the issue they don’t really have a good answer. They say “Oh, I just think that’s what it is”. (And so often I can read what influencers are saying online and all of a sudden people’s problems seem to be exactly what the latest “hot topic” is all about)
When we start diving into the problem we very often discover that it’s not a problem at all – just a lack of patience.
But HOW do you decide whether or not something is truly an issue? HOW do you know when something needs to change?
A plan isn’t complete until numbers are attached. And this isn’t just an income number! (Remember a few posts back when I talked about money in your account being a lagging indicator of success? Your bank balance shows something that’s already happened. We want the numbers that tell us when something will happen in the future.)
What numbers you look at depend on the goal itself and the order you look at them is important.
You want to think about the order in which a client will walk through the process and assign goals to each step. These goals can’t be random numbers you pulled out of your ass… they need to make sense based on history and conversion rates! If it’s your first time setting up a leads funnel in your business (or if you’ve never had one work before), you can use industry standard rates to begin until you have enough data to plug in your own numbers.
Let’s look at an example:
Say your goal is to drive leads to an email list from your blog.
So the first thing a potential lead needs to do is to find and visit your blog. We need to put a concrete number goal on blog visits and create a strategy to drive traffic.
The second thing a potential lead needs to do is to visit the optin. This may be a popup. It might be a click trigger on your page. We need to know how many blog visitors click on this call to action and create a split test to see if we can improve that number.
The final thing they do is to convert by inserting their name and email address. So the final goal we need to set is a goal around the percentage of people who complete the conversion.
FIGURING OUT WHAT THE GOALS SHOULD BE:
To discover what those numbers should be to start with one conversion and work backwards. If possible you should plug in your actual conversion rates, but if that’s not possible using industry standards is fine.
Say the percentage of people who convert from the landing page is 20%.
So to get 1 optin, we need 5 people to view the landing page. (1 divided by 20% is 5).
The percentage of people who land on your blog and click through to your landing page is 3%.
So to get 5 people to your landing page, you need 167 people to read your blog. (5 divided by 3% is 167).
Now you can just scale up these numbers for the goals you are looking to reach.
If you want to create 100 new list subscribers you would need 16,700 blog viewers.
As long as you’re getting approximately one subscriber for every 167 viewers, you don’t have to wait until hitting 16,700 to know if you’re on the right track. Being able to break down these goals will allow you to figure out where you’re going wrong OR if you’re simply not being patient enough.
Common Mistake 2: Not creating feedback loops
Most people look to their bank account alone to measure the success of a project. Problem is, money in the bank is a lagging indicator of success – it happens AFTER the success is had, not before. You can’t measure how effective a strategy is by money alone! You need to create feedback loops and set concrete targets around leading success indicators like visits and leads to really know if you’re on the right track.
Common Mistake 3: You don’t know your financials
Do you have any clue what conversion rate and CPC you need to hit in order to breakeven or make profit? Do you know how many people need to see your stuff in order to push enough people through your funnel to churn out a single sale? Do you understand how to properly price a product and how your pricing relates to your target market?
Common Mistake 4: Your idea of testing is throwing it out there and seeing what sticks
No idea how to split test. I once changed the colour of a SIGNUP button and raised conversions by 25%… How would I have known that it was as simple as the colour of a button had I just thrown the whole page out and started from scratch?
Common Mistake 5: You don’t know how to identify what’s broken
In the last example most people blame the ad, not the landing page when they aren’t collecting leads. Do you understand how to properly break down and understand your analytics in order to find the source of your woes? It sounds scary but you don’t have to look at every number. Just know which ones you are looking for and what they mean.