Performance indicators (KPIs) are of crucial importance for our industry. Without it, we have no idea whether what we are doing will bring us closer to our goal. They are the barometers of success that show whether your company is making or losing money.
The goal is to make the conversion funnel analysis easier for you by providing you with the right KPIs.
Der Conversion Funnel
The top funnel area Awareness represents users who neither know your brand nor your shop, while at the bottom of the funnel there are users who are convinced of your brand and your products. As a result, a user from the top funnel area is less likely to convert. Sounds logical right?
What you may not already know is that each of these sections in the marketing funnel typically corresponds to a PPC campaign type: Brand, Non-Brand, Hard Remarketing, Soft Remarketing, and Display. Your KPIs shouldn’t necessarily be the same for every campaign type as the The success of a particular campaign depends on the type of users it acquires.
The conversion funnel analysis and your KPIs
High Funnel User
User level: attention
A high funnel user is just starting to notice your business and is not necessarily interested in what you have to sell. These types of users are not looking for something directly related to your business.
Campaign type: Display
The only way this user can go from subconscious to conscious is through an initial outside search contact. This type of user is obtained through banner or video campaigns (non-remarketing).
Focus: behavior metrics
This user is unlikely to convert on their first visit. If the average cost per acquisition (average CPA) of your account is $ 50, don’t be surprised that the average CPA will be 20 or 30 times higher, especially on these campaigns. You want this user to be concerned with the content on your homepage. Only then can needs for your products arise. Therefore, the success of these campaigns should be determined by behavioral metrics.
Key performance indicators for high funnel campaigns:
- Bounce rate
- Average length of stay
- Pageviews per session
Mid Funnel User
A mid-funnel user is aware of your brand and is increasingly interested in your offer (s). You may be actively searching for related topics to learn more and / or to see what the competition has to offer.
Kampagne Type: NonBrand-Search, Soft-Remarketing
This user type is usually acquired through non-brand search campaigns with keywords that are problem and / or solution-oriented. Additionally, this user tends to convert well with soft remarketing campaigns. These campaigns provide this user with additional content that makes their way through the funnel easier, rather than instantly convincing them.
Focus: new user values, micro conversions
These users tend to convert, but at lower CR rates than the account or website average. With this in mind, these campaigns can best be judged on the new new user data; these reflect more of a mid funnel user. Since these campaigns are also designed in such a way that a mid-funnel user later returns to your homepage to convert, Mirco Conversions / Assists / Preparatory Conversions can also effectively contribute to determining the success of these campaigns.
Key performance indicators for mid funnel campaigns:
- New User Revenue versus Revenue from Returning Users
- New user conversion rate
- New user CPA
- New users ROAS
- Preparatory conversions / assist conversion sales
- Assist Conversion Rate
Low Funnel User
User level: need
A low funnel user knows your company very well, may be looking specifically for your product and brand, and is ready to buy.
Kampagnentyp: Branded Search, Hard Remarketing
This type of user is usually acquired through branded search campaigns; they are more likely to look for a specific brand and convert. Likewise, they are more likely to be willing to hard sell and buy through a remarketing ad showing them a specific product or service.
Focus: Returning User Metrics
These users convert at higher rates than any other type of user. The focus here is on the metrics of returning users, especially according to the last click model, it is the best way to measure the success of these campaigns. You should also activate user ID tracking in Google Analytics. This gives you additional metrics for the CLV.
- Key performance indicators for low funnel campaigns:
- Revenue from returning users
- Conversion rate of returning users
- CPA recurring users
- ROAS returning users
- Customer Lifetime Value
A campaign can only be successful if the goals are adapted according to the campaign types and target groups. You can optimize a display campaign to increase brand awareness until there is nothing left to adjust; it will never convert as well as a branded search campaign.
Remember: every single user first goes through the conversion funnel from above. In order to achieve the most efficient and successful Google Ads account possible, you need to understand your customers and know where each of your campaigns is located in the funnel view.
Also Read: 12 Ideas For Conversion Optimization