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Let's go through the concept of the marketing funnel.
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Now that we understand the journey a potential customer goes through,
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we can use the metaphor of a funnel to track
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and analyze each step in the journey with data.
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Impressions and reach capture the person seeing the ad.
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Lead generation is visiting the website,
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and buying something is conversion to a paid customer.
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So, at the top, we're trying to build
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awareness and get our name in front of the potential customer.
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To do this, we use ad platforms and search engine optimization or SEO.
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With SEO, we can make sure our ad shows up for
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the right mix of search terms as people are searching for things online.
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For example, search terms like grocery delivery or grocery shopping
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would be a good search term when we cart it ad shows up for the person.
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The metrics we can measure here are the number of people who saw the ad.
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Some of those people will click the ad and be taken to our website.
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To be counted at this level,
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the user should have clicked through the ad or the email sent to them.
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The metrics we use here are called click-through rate and cost per click.
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At this third level,
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the user has been counted because they have visited the company website.
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But just because someone landed on your web page,
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that does not mean the person is interested in
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spending money on buying a product from your website.
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More sites try to capture some other piece of information
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about you to determine if you're indeed interested.
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The most common is your email.
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With your email, they will then have the ability to send
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your marketing emails to try and convert you into a paying customer.
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If you provide your email or any other piece of information about yourself,
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you have indicated interest in the business,
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and the business will now think of you as a potential customer.
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They call this a lead.
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Other ways that businesses gauge your interests
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are if you download a document or create an account.
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Once visitors engage in any of these actions,
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the user is counted as a lead.
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At this level, marketing teams often want to know how much
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it costs a business to get the viewers to get to this level.
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The metric we calculate is the cost per lead.
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The final step is when the customer actually
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makes a purchase and becomes a paid customer.
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In other words, the lead converted to a paid customer.
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Our ultimate goal is to maximize these conversions at the bottom of the funnel.
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In the following pages,
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we will address each of
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these specific metrics that capture the progress at each of these levels.
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We will go over how to calculate them,
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and then you will practice.
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Now that you have an overview of this customer journey,
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calculating these metrics is not going to be hard.
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