Web analytics is not just measuring the sales funnel on a website!

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Problem 1:

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Many people think that the only purpose of web analytics is to measure the so-called sales funnel on a website , but in fact it does not exist. Why? When we talk about the sales funnel, we must immediately think about what stage of their life cycle the client is at. What funnel are we talking about? Direct sales or sales through a dealer network? Offline sales or online? Referrals, when a client recommends you, sales from different demand, repeat sales - they are all analyzed differently.Problem 2. You can’t measure advertising effectiveness only by ROI!
The next problem is using incorrect performance indicators. There is a trap that most novice Internet marketers, agencies and clients fall into: when conversion increases and its cost decreases, at some point the profitability starts to fall – the so-called conversion over-optimization. Non-target clients come, bother your call center, waste slovenia consumer email list managers’ time. In the process, there may be losses, returns, lawsuits, etc.


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Red line is revenue, black line is conversion cost
Different channels bring in clients of different quality, buy different products of different price categories, so depending on the conversion, the ROI coefficient can fluctuate from strictly positive to sharply negative. And you won’t always be able to control when this happens.


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Blue line is ROI, black line is cost per conversion
Even considering the lifetime value of a customer (simplified – the amount of money they have brought you over time), we often find that the market is limited in size, especially in complex products and services. There are a limited number of highly profitable customers. Customer profitability can vary greatly. Even with the same lifetime value, different cohorts of customers can be differently profitable. This also needs to be taken into account.