A lot of people are using #FlipMyFunnel but they haven’t been able to figure out how to show the ROI on it. With the traditional funnel, less than one percent of leads turn into customers – that’s not a great funnel. But let’s look at the metrics on it. Take a look at my two-minute whiteboard session and Tweet the highlights below!
Cost per Engagement for the Traditional Funnel
- Let’s say your goal is to have 10,000 leads and the cost per lead (CPA) is about $80 which is about $800,000 that you might spend.
- The cost per engagement (CPE) – which are all of these emails, calls, direct mail pieces, etc. at scale – let’s say you’re spending $20 per engagement for these leads and that comes out to $200,000.
- Together, you’re spending about a million dollars – that’s a typical way to look at spend for the traditional funnel.
#SangramSeries: How to measure ROI on the flipped funnel with @sangramvajre #FlipMyFunnel
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Cost per Engagement for the Flipped Funnel
- From a flipped funnel model, this completely changes. You’re not going to go after thousands and thousands of leads – you’re going to actually start with the hundred that you know are qualified.
- If you start with 100 accounts, let’s say the cost per acquisition per account is five times the cost per lead which is $400. That’s still about $400,000.
- The CPE for the traditional funnel is $20 but that’s based on a workflow at scale – for the flipped funnel, you’re focused on a personalized approach, which ups the CPE to $100 per account for a total of $100,000.
- The total of this scenario comes out to $500,000 which is half the cost of what you’d be spending for a lot more time and effort with traditional marketing.
#SangramSeries – Using the flipped funnel model will save you HALF the cost of using the…
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With ABM, it’s not about the volume game, it’s going to save you money, time, energy and resources.0