What is Growth Hacking? In the last blog piece we discussed the importance of the Bottom-of-the-Funnel-Up Mentality.
Yet, at the bottom of that funnel are these technical pieces called 'Conversions.'
Moreover, these Conversions and their corresponding Conversion Rates are the corner-pieces of your digital efforts.
Therefore, the aim of this Part 2 of the Hacktics Guide To Growth Hacking is to flesh out 1) What these conversions are, 2) How they're mapped out, and 3) How you can use them to understand your Click-to-Conversion ROI.
Finally, as stated in Part 1, at Hacktics, we believe the Essential Skills of growth hacking to be:
- Funnel Architecture
- Conversion Mapping
- Data Feedback (Loops)
- Advanced Audience Segmentation.
- Report. Find patterns. Scale.
The Secret to Growth Hacking...
As promised in Part 1, we're going to dive deeper into the world of Growth Hacking Land. As mentioned, as there are two core components to analyzing and optimizing any funnel:
1) Conversion Mapping, and
Let’s talk about conversions, first.
What is Growth Hacking? | Essential Skill 2: Conversion Mapping
You read that right. Throughout a well-formulated marketing funnel (especially at the bottom) are these things called Conversions.
Did they buy? Did they sign up? Did they request a quote? Schedule a demo?
These binary events are all "Conversions." (Think: Did they do it, did they not?)
Therefore before you can find opportunities in your growth marketing efforts, you'll have to identify which conversions ultimately lead to your growth plan.
Let me say this a little more clearly: Before you start spending money on getting people to your website, have a clear idea of what you want them to do once they get there. Whatever it is you want them to do - these are your conversions.
Moreover, as we discussed in Part 1, you'll want to start mapping your conversions at the bottom of the funnel, and work upward from there.
Once you do this - either as a business owner, marketer, or team member - not only will you have a vocabulary to action steps, you'll have a framework for future automation.
How on earth do I know which ads are converting vs. those that are just burning cash?
As good fortune had it, Google Ads came easy to me. My understanding of SEO quickly allowed me to understand the game of search campaigns and INTENT-BASED marketing (apologies for shouting). Yet, even though I felt I had cracked the code to intent-driven clicks, I felt at a loss when it came to PROVING my actual efforts.
You see, I remember the frustration of running search ads early on: Even though I could generate traffic, it wasn’t long before I ran into a professional roadblock: How on earth do I know which ads are converting vs. those that are just burning cash?
You see, back then, it wasn’t my role to set up the conversions or tracking (mostly because I didn’t know how to do so), therefore, I was always frustrated by the fact that I didn’t know how to connect the dots: From click, all the way to sign-up. For all I knew, a conversion event was some complicated piece of code to paste in the netherworlds of the website backend...it might as well have been the Matrix.
So to the point: traffic wasn’t an issue - what puzzled me was…
1) How to identify which one of these clicks actually signed up for the offer? and,
2) How does that Conversion Event close the loop in my Google Analytics to determine my Conversion Rate?
You see, I'm not really one to let these sort of things get the best of me. I was dead-set on being able to prove my efforts: Not only would provide me with the proof I needed, but it would increase my value and my ability to solve these problems for others in the future.
So, I dug into learning how to utilize this tool called Google Tag Manager to close the loop. Google Tag Manager allowed even a noob like me (read: not a backend developer) to easily deploy my conversion code to prove what was working and what was not.
The answer lies in Conversions.
I'm convinced that at the heart of any funnel lies the all-important Conversion. Now, as mentioned, a conversion can be a multitude of things as it depends on your sales process. Normally, a conversion would be: a purchase, a lead, a download, an app install.
Or, maybe you want to go really go meta and use several 'mini' conversions because you're a segmentation guru. For example, you could use scroll depth conversions on blogs to only retarget those who scroll 50% of the page, or fire click Events and serve up remarketing ads to only someone who clicks a specific button, on a specific page - all doable (and most of the time they're worthwhile).
Here's where the growth hacking and automation comes into play: A conversion (however it is triggered) can be used to automate the movement of a potential customer into the next segment of the sales funnel.
So why are conversions important when it comes to understanding a funnel?
A conversion is a critical element that allows you to segment your funnel and provides the most important data point for your ROI.
You see, knowing your conversion rate allows you to pour money on what’s working and allows also you the freedom to call an expiration date on any experiment.
Let me explain.
Let’s say I’m growth hacking your business.
You have a $10,000 budget. How would you prefer I spend the the budget? Do you want web traffic or customers?
Of course you want customers.
“But clicks lead to customers, Jason.”
Exactly. So, let’s find out:
- Which clicks generate the most leads, and
- How often a lead becomes a customer.
That folks, would be your Conversion rate - the higher the rate, the better the traffic source. Moreover, knowing your high-converting traffic source(s) allows you to spend your time, attention, and ad spend on what's working.
You see, conversions and their corresponding conversion rate take the guesswork out of your digital growth efforts.
Plain and simple: If it's not converting, then it's not working. If it is working, then spend into that traffic source!
Ready to take the red pill?
Let’s talk money.
A conversion (however it is triggered) can be used to automate the movement of a potential customer into the next segment of the sales funnel.
There are 5 data points of information I need to know to make your business money:
- Your Budget
- Cost Per Click
- Traffic (Landing Page Views)
- Conversion Rate
- Close Rate
If you can find these 5 data points for a digital campaign - you’ll be able to know your immediate ROI or ROAS (return on ad spend). That means, you’re allowed to run lighting-fast campaigns/experiments without any guesswork on which marketing efforts are making the greatest impact.
Let me make this even more simple for you.
Below, you will find an ROI calculator that I use in my day-to-day growth hacking. It helps me identify the 5 points I mentioned above.
And, I want to make it FREE for you to use. Simply click the link below to the Google Sheet, make a copy, and start using your conversions to understand your ROI.
Moreover, if you'd like to know how to create these conversions, how to fire them, how to deploy them and how to leverage them for your business, then I'd invite you to take my e-course, here.
What is Growth Hacking? | Essential Skill 3: Tracking Parameters
Now, before we get too excited about finding immediate ROI, we have to talk about tracking - because you won’t be able to properly track your traffic unless you’re using the right tracking parameters.
So, let’s talk about UTMs.
(Part 3 coming next week!)
Hacktics Growth Hacking
What is Hacktics?
Hacktics exists to help entrepreneurs, digital marketers and marketing teams build and automate data-rich marketing funnels. Built with a bottom-of-the-funnel-up mentality, Hacktics provides a framework and foundation for both the Growth Hacker and the growth hacking skill set required for today’s digital marketing.
Our role here at Hacktics is to provide an understanding and step-by-step implementation of these ‘technical’ components - and to help our students build a foundation of tracking and systems. With this base layer and framework in place, we then help our students build ROI-driven marketing and automation.
The Hacktics' E-Course on Building, Tracking and PROVING Conversions
Hacktics has announced an offering for their first online E-Course for digital marketers, marketing teams and online entrepreneurs entitled, "How To Build a TRACKABLE, Sales Funnel...Without Having to Hire, Or Be Held Hostage by, A Tech Guru."
After completing this e-course, students will be able to setup Tracking & Conversion systems and know where to find the evidence in Google Analytics. This course provides a blueprint and framework for building a trackable sales funnel and covers Facebook Ads, Google Ads, YouTube Ads, Google Analytics, Google Tag Manager, UTM Generators and even a "Tracking, Optimization and Conversions" Deliverables Checklist.