The Most Important Sales Funnel Metric: Average Cart Value
Discover why this is the most important sales funnel metric, that so many internet marketers tend to overlook, to their cost.
Good morning welcome to another episode of The Drive. We’re going to the office a little later today because we were up late last night running a coaching class till around about 1 am.
But the big news of the day is… And this is kind of a little too early to get too excited, but…
I Really Do Like To Go Off The Data
…that I see and feel my gut instinct my gut instinct is rarely wrong. In fact, gut instincts are rarely wrong for most people.
So we opened up… after weeks of optimisation and after months of building and creating… we opened up a brand new offer, with our brand new sales funnel behind it, to our Certified Partners two days ago – less than two days ago, 36 hours ago.
And we ran the numbers yesterday, just to see like what’s happening. Now don’t get me wrong, we haven’t had a serious amount of leads into the funnel. Only, I think, five or six hundred leads entered the funnel in the in the first 24 hours or so.
But What I’m Excited By, Is The Numbers That We’re Seeing
The most important sales funnel metric ultimately, for me at least… There’s a lot of people that get hung up on, “What’s the conversion rate?”
The conversion rate to me is just a vanity sales funnel metric. Does conversion rate really matter?
What really matters is… What is a buyer worth? Okay? So, how much is a customer spending?
We Have A Sales Funnel Metric We Call ‘ACV’
…which is ‘average cart value’. So, what average cart value means is, how much has a customer spent by the time they’ve completed your front-end sales funnel.
Basically, to put it in simple terms, after they’ve ordered that front-end offer, that first thing, and then seen the upsells that you presented, and they’ve basically finished that initial sales cycle, how much did that customers spend? Or how much are your customers spending on average, after going through that?
And here’s the exciting news already.
In the first 24 hours, having done five or six hundred leads through the sales funnel so far, the average cart value sales metric for the initial front-end sales funnel is… I think it was like thirty to thirty three dollars.
This Sales Funnel Metric Is Pretty Exciting!
Because whenever you start seeing numbers like that, then I know we have got a seven figure sales funnel on our hands here.
We have a seven figure a year sales funnel, that’s going to allow us to acquire customers and profitably convert those customers on the back end and deliver massive value to them. Whilst at the same time generating a lot of revenue and a lot of profit for the business.
If you’ve been following the drive for any amount of time, you would have heard me speak about The Perfect Offer sales funnel for many weeks. And now it’s finally out there, into the world. And it’s now working because we’ve optimised it – we’ve got it converting.
And Now It’s Just… SCALE!
Let’s get as much traffic, get as many leads as we can, through as many channels as we can: Our Certified Partners, Facebook Ads, solo ads, YouTube ads.
We’re really now just gonna go BOOM! and blanket out as much as we can – put as much money into advertising.
Because what we now know is, if this sales funnel metric (the current average cart value) stays about the same, we can spend like thirty two dollars, give or take, to actually give away a free copy of The Perfect Offer.
It’s a free-plus-shipping offer. So it’s a physical product that we mail out. And for every person we give one of those out to – so far, early stages tell us, that person is spending on average about thirty to thirty three dollars.
So now we can spend thirty to thirty three dollars in advertising, to give one of those away to break even…
And Be Acquiring Buyers For Free!
This is where things now get exciting. Because we’ve created a sales funnel that can allow us to get buyers/customers into the business for free. And that’s the ultimate goal of that sales funnel.
Because then, after that, we’ve got a whole host of premium products, and other additional opportunities to offer those people.
So we’ve got products from two and a half thousand dollars, five thousand dollars, ten thousand dollars. We’ve got boot camps at a thousand dollars. We’re going to be doing live events over the next twelve months.
So if we can get all these buyers now for free, and then offer them additional stuff that they want and need, that’s how our business (and theirs) is now going to really go forward.
So with that said, it’s been awesome sharing this all with you. Obviously I’ll continue to do so.
Have a great day! Thanks for joining us here on this journey. With that said, I’ll talk to you again very soon in “Be Positive In All You Do – And This Is What Will Happen”. Thanks for joining me here on The Drive.