It all starts with your marketing funnel hypothesis.
What is it? It’s your method to intentionally convert people who don’t know about your product into your customers.
Don’t just spend your marketing budget and hope for new customers to come.
Design a strong hypothesis on how to turn people in customers (considering all the required steps for it to happen).
Let me give you an example of a marketing funnel:
You’ll REACH people through search engines Some of these people will VISIT you site Some of these visitors will CLICK on a link for your sales page Some of these prospects will BUY your offer.
And your first mission is to define and visualize the steps of the funnel, as well as start building your first hypothesis for the conversion rates.
The conversion rates are simply the percentage of people who goes to the each stage of your funnel.
E.g., if you reached 100 people and 10 of them visited your site, you have a conversion rate of 10% (Reached to visitors)
In the top section of the model, you’ll find the fields related to your marketing hypothesis.
Although you find many different columns, you’ll have to fill in information in just 8 cells (the blue ones).
So, let me tell you what those blue cells ask from you:
In the above example, I considered:
So, if I can make these metrics come true, I’ll have the following outcomes.
The good news is that the first part of your marketing funnel strategy is done. You’ve finished your hypothesis.
The bad news is that it’s still just a hypothesis.
So, the next step is to test your funnel hypothesis in the real world.
After completing your first hypothesis about your marketing funnel, we’ll move towards the second part of the model.
In this part, you’ll tell the model what happened in your tests.
As an example, let’s consider you did two tests so far: Channel 1 Ads and Channel 2 Ads Campaigns.
Now, let’s consider you got the following results from your tests.
CHANNEL 1 – Ads Campaign:
– Investment $1,000
– Impressions: 50,000
– Visitors: 500
– Subscribers: 30
CHANNEL 2 – Ads Campaign:
– Investment $750
– Impressions: 30,000
– Visitors: 600
– Subscribers: 15
What does that mean? Let the model tell us…
You covered the two first steps: 1) your initial hypothesis and 2) your tests.
The tests you do will show you how good your hypothesis is.
Based on the tests we did with channels 1 and 2, we’re able to update our initial hypothesis as follows:
Of course, another advantage of keeping track of your campaigns is to maximize your return.
So, if a campaign is performing amazingly, put more money on it.
However, if another campaign is delivering you a poor result, shut the flow of money to it.
Now, it should be clear that without tracking, your wasting startup’s money in the wrong campaigns.
Leave me a message (questions, comments, feedback…anything is really appreciated)