How to Use Basic Tools to Analyze Conversions

Whether you are a SaaS business, have a physical product, or an info product, you need to analyze and optimize your conversion rate. Babak Azad explains what metrics and tools you should be looking at to hone in on the important factors that drive the value of your business.

TRANSCRIPT

Let’s assume, again, whether you’re a SaaS business, info product, or physical product.

Certainly for me, from a traffic side, the core stuff is spend, click-through rate, CPCs—cost per click—conversions, and cost per acquisition, whatever that means for you.

For some folks, that’s lead gen versus driving to an order. Those are just conventions, so the philosophical stuff and the strategic stuff apply to both.

Certainly, you want funnel metrics: How many people hit your site, whether it’s landing pages or blog pages, and get through the funnel?

Whether you have a one-step or a five-step process, I would say, again, start with: If you have GA set up or you have other tools set up, what kind of basic tracking do you have? How many people are hitting pages? What’s your conversion rate? Average order value?

Then, ideally, over time, whether someone converts on day zero or beyond, what is the value of those people over time?

I generally try to look in bite-sized chunks of day zero, day one to 30, 31 to 60, and then beyond.

Depending on your risk profile, your business goals, and all those things, you may determine how long you want to look out and how much you want to apply toward customer acquisition.