In the marketing world, growth marketing is a hot topic. It's already too much with the marketing, but growth marketing? Isn't it more tough and daunting than before? I'd want to learn more about funnel marketing and AARRR-based marketing, which are the initial stages in growing your business.
In discussing funnel marketing, there is one principle that should not be overlooked. 'Conversion' is the notion.
Are you aware about the marketing notion of conversion?
What is a Conversion?
In marketing, conversion is when a customer responds to the marketing content and behaves in a way that the marketer intended. In other words, all the actions with the purpose of marketing are conversion actions. For example, it can be a variety of actions, such as viewing a landing page, following social media accounts, registering as a member on a website, purchasing products, and so forth.
Unfortunately, most marketers still consider the purchase conversion as the only meaningful conversion. Of course, it would be ideal if we could boost conversion rates solely through short-term marketing.
Even if we assemble all of the personnel, raising the buy conversion rate in a short period of time will be difficult. With only a few team members, it's even more difficult to enhance such a challenging assignment.
So, which conversions should we keep an eye on and try to improve?
The 'funnel' is the most important notion.
What is a Funnel, exactly?
A funnel is a method for customers to recognize and purchase a product. The name was chosen because the way the number of people drops from the wide entrance to the later stage resembles a small funnel.
The funnel model is different depending on the industry, company, and marketing aim. There are several funnels for different situations, ranging from low-involvement products to high-involvement ones that require a lot of time and complicated stages before being purchased.
The aim of funnel design, however, remains the same. The goal is to enhance conversion rates at each level of the marketing funnel, culminating in a higher conversion rate at the buy conversion rate.
To put it another way, the ultimate goal is to improve the funnel at each level and make it run more smoothly.
What exactly is AARRR?
Because the funnel notion is so significant in business, there is a lot of study being done on it. Let's take a look at the AARRR funnel, which is one of the many funnel theories.
Dave McClure, founder of the American Startup Accelerator 500 STARTUPS, established the AARRR indicator as an analytical framework. It's a good methodology for determining the current state of services and devising strategies to target the weak points. As a result, it is especially beneficial to startups with limited labor and time.
Acquisition, Activation, Retention, Revenue, and Referral make up the AARRR stage.
i. Acquisition
What methods do you use to entice new customers? How do new clients get their hands on your products or services for the first time? There are numerous avenues available, including on/offline advertising, publicity, viral, e-mail, social media, and so on. CPA, CAC, number of new visitors, and route of new visitor influx are all metrics to consider.
ii. Activation
How do clients use our products/services for the first time? Is the customer's first impression of the product/service favorable? Each company has its own definition of what it means to be "active" (eg, actively using the services, frequently viewing detailed pages of products on sale, reading the content of platform services, etc.) Metrics include website traffic, time spent on the website, PV, sign-up rate, and event participation rate (number of event page views), among others.
iii. Retention
What is the rate of repurchase? Customers see value in the part of the product and choose to repurchase it. Bounce rate and bounce pages are two metrics to consider.
iv. Revenue
Do our customers have to pay for our goods or services? In what circumstances do customers make a substantial contribution to sales? Purchase conversion rate, sales, and a unit price per order are all metrics to consider.
v. Referral
Are users willing to provide their feedback? Metrics include the number of shares and comments.
It is feasible to create a more effective marketing plan by establishing it based on a series of criteria and indications.
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