Metrics are a fundamental part of a successful marketing campaign. As the world of Web3 continues to grow and evolve, so does our need to analyze key performance metrics related to marketing funnels. Despite the fundamental benefits of measuring your funnel metrics, the technique is still overlooked by many. This is why we decided to write about the 4 funnel metrics Web3 projects should measure.
By understanding the metrics relevant to your campaign, you can better understand how you are reaching your target audience and what actions you should take in order to optimize your strategy.
In this article, I will discuss four key metrics every Web3 project should measure.
The marketing funnel is a series of steps that help prospects move through the customer journey and helps marketing teams measure their efforts to convert prospects into customers with content and marketing material. Marketing funnels are usually based on the ‘AIDA’ model.
Marketing funnel metrics measure the performance of various stages of the customer’s journey, from awareness to conversion. By tracking these metrics, you can gain valuable insights into the effectiveness of your marketing efforts and identify areas for improvement.
If you have heard of CPA and LTV but thought these abbreviations are only used by marketing experts, think again! There are many benefits to measuring your metrics to optimize your funneling strategy, which I will discuss below.
Measuring your marketing funnel metrics allows you to track the progress of your campaigns and identify which are working best. This information can help you make more informed decisions on where to allocate resources, optimize your marketing strategy and maximize return on investment (ROI).
If you had the insights to analyze and optimize your efforts, would you grab the opportunity with both hands?
With that said, let’s look at the 4 Marketing Funnel Metrics Every Web3 Project Should Measure:
CPA measures how much you spend on marketing to acquire each new customer. To get this number, divide the entire cost of your marketing campaign by the number of conversions.
From there, the idea is pretty simple: If the cost exceeds what you are making, it is your cue to test alternatives of starting a campaign from scratch.
The cost per acquisition is an important metric as it measures the amount of money spent before getting the ‘return’ of acquiring a new customer or subscriber. CPA analysis can help you determine which marketing tactics are the most cost-effective and strategize how to lower the cost, for example.
LTV measures the continuous value a customer brings to a company. This metric is about retention, which carries particular weight for SaaS businesses because subscribers pay regularly.
However, LTV also has a significant impact on Web3 companies. Web3 is about community, keeping users on your platform, holding your token, or engaging with your smart contract for a period beyond just a momentary sale. Despite the importance, there are few projects truly measuring the LTV.
Making someone invest in your project is only half the task. Keeping that person invested will be more difficult (and equally important). The customer lifetime value is a terrific metric as it can help you identify which customers will likely be more valuable in the long run.
Conversions don’t mean anything if we don’t define them.
What amount of website visitors converted to marketing qualified leads (MQLs)?
How many MQLs engage with your content?
How many sign-ups or subscribers convert to longer-term holders or community members?
Ideally, we want a conversion rate per stage.
This data is like your personalized manual for optimization. Seeing where your leads fall off reveals where there are opportunities.
The conversion rate measures how many visitors or leads become customers or subscribers after taking the desired action, which you can outline in your call to action (CTA). This metric can help you identify which campaigns are performing well and which ones may need to be adjusted to boost your conversion rate.
After defining your conversions, consider that each marketing channel has different goals, so it’s essential to analyze the success of each one independently. Teams that know what they want from each channel will have an easier time measuring success.
- Is clicking on a paid ad a conversion?
- Does joining a community equal a conversion?
- Is spending time on the website a conversion?
Answering questions like these will help you identify what you want from each channel, so you can measure whether it’s working or not.
Measuring your marketing funnel metrics is essential for any Web3 marketing project. By understanding these key metrics, you can gain valuable insights into how your campaigns perform, optimize your marketing strategy, and make more targeted decisions on where to allocate your time and resources.
Using the right data and tools to analyze your marketing efforts, you can optimize your strategies and maximize your return on investment. Hopefully, these 4 funnel metrics Web3 projects should measure will be able to help you along the way.