Google Analytics is the most popular web analytics solution out there.
Today we are going to discuss how you can use it to improve lead generation:
- How to create a lead generation funnel.
- How to to analyze Google Analytics data.
- How to improve the lead generation funnel conversion rate.
Want to know how to get more and better leads?
What Is a Lead?
Okay, so before we get into the topic of this article, let’s define the term “lead”. What does it mean?
A lead is a potential customer who:
- Has expressed an interest in your product or service.
- Has given you their contact details (typically their email address).
They have to meet both of these criteria to be considered a lead.
One common misconception is believing that website visitors are leads.
Keep in mind that someone who has visited your website but hasn’t provided their contact details is not a lead. They only become a lead once they give you their email address.
What Is Lead Generation?
Lead generation is the process of converting potential customers into leads by getting them to give you their contact details.
In the online marketing context, this is typically done by offering them a lead magnet (a freebie that can be accessed online or downloaded to their device) in exchange for their email address.
Google Analytics can help you optimize lead generation because it allows you to track and analyze relevant data.
What Is a Lead Generation Funnel?
A lead generation funnel is the sequence of actions that the potential customer needs to take in order to get their freebie.
These funnels typically look like this:
- The potential customer clicks through to a lead magnet landing page.
- They use the opt-in form to type in and submit their contact details (usually either a name and email address or just the email address, though some companies ask for more information).
- They are taken to the Thank You page where they can download or access the freebie that you promised.
With Google Analytics, you can set up a custom funnel that allows you to track what’s happening in your lead generation funnel.
Note that custom funnels are only available on 360 properties.
How To Create a Custom Funnel in Google Analytics
Here are Google’s instructions:
- Sign in to Google Analytics.
- Navigate to your view.
- Open Reports.
- Click Customization > +New Custom Report.
- Select the Funnel tab.
You can then start building your custom funnel.
Google Analytics allows you to have up to 5 stages per custom funnel, but you probably only need two for your lead generation funnel (the landing page and the Thank You page).
You also want to set up a conversion goal to track the sign ups.
- Destination goals (specific destination loads).
- Duration goals (sessions that last a specific amount of time or longer).
- Pages/screens per session goals (a user views a specific number of pages or screens).
- Event goals (an action defined as an Event is triggered).
Set your Thank You page as a destination goal.
Just make sure that this page can’t be accessed any other way except for signing up to your email list.
How To Analyze Google Analytics Data
Okay, so now you are collecting your lead generation funnel data, but how can you analyze it?
- Go to the “Acquisitions” tab and look at the performance of your marketing channels. Which one is generating the most leads? Double down on it.
Also, if you realize that a particular marketing channel doesn’t work, then stop investing in it.
- Evaluate the conversion rate of your lead generation funnel. What percentage of the people that visit the landing page give you their email addresses?
It’s hard to say what conversion rate you should aim for because it depends on the industry you are in.
However, if you are struggling to persuade people to download your lead magnet, then there’s a problem in your lead generation funnel that needs to be identified and fixed.
You might also want to consider setting up several lead generation funnels, then using Google Analytics to determine which one converts the best.
What’s important is that you collect data, analyze that data, and then make data-driven decisions.
Top 3 Lead Generation Tips
So how can you increase your lead generation funnel conversion rate?
Here are the three best ways to do that:
#1 Improve Your Traffic Quality
The most important factor that affects your lead generation funnel conversion rate is traffic quality. What does that mean?
It means that if you send the wrong people to your lead magnet landing page, you won’t be able to convert them no matter what you do.
Let’s say that:
- You are selling an info product that teaches men how to gain muscle.
- You offer a free ebook on increasing one’s bicep size in exchange for potential customers’ email addresses.
- You have a great landing page for this lead magnet.
If you target both men and women in your paid ads campaigns, your conversion rate will be lower than it would have been had you excluded women. Why?
Because women as a group are less interested in increasing their bicep size.
Moreover, even women who do want bigger biceps are unlikely to be persuaded by a landing page copy that was written with men in mind.
This means that even if you manage to get a woman to click through to your landing page, she probably won’t be interested in your lead magnet. It’s a waste of a click.
So in this situation an easy way to increase your conversion rate would be to only target men in your paid ads campaigns.
And you could then narrow the target audience down even further by going after men in a specific age rank, with particular hobbies, a certain level of income, etc.
Your best bet here is to analyze what your existing customers have in common and then use that information to create a customer persona for your marketing efforts.
Remember, you don’t want just any traffic, you want traffic that’s made up of your ideal customers!
#2 Improve Your Lead Magnet Quality
The second most important factor that affects your lead generation funnel conversion rate is your lead magnet.
People often make the mistake of not giving their lead magnet the attention it deserves just because it’s free.
That’s understandable. It seems counterintuitive to invest your resources into something that you give away for free.
But as we have explained on Instagram:
People are not going to give you their contact information unless you give them something super valuable in return!
So if you want to get more leads, you need to create a super valuable lead magnet. There’s no way around it.
Example: Nick Stephenson’s “$0 to $1k per Month” Video Course
Nick Stephenson is a best-selling author and a business coach that teaches writers how to market their books.
His lead magnet is a free video course called “$0 to $1k Per Month” where he explains how you can get to the point where you consistently make at least $1,000 per month from your books.
Take a look at what it includes:
Moreover, you also get a supplementary 3-part program called “Blank Page to Published” meant for writers who are working on their first book.
Plus, you get direct access to Nick:
And all you need to do to get all this value is provide your email address. Sounds like a no-brainer, right?
#3 Improve Your Landing Page
The third most important factor that affects your lead generation funnel conversion rate is your lead magnet landing page.
Online marketers have been obsessively A/B testing landing pages for over two decades now, so we already know what works and what doesn’t.
That’s why it’s important to use landing page best practices if you want to maximize your conversion rate.
Here are the main things that you need to focus on:
- Create a killer headline that immediately conveys the main benefit of your lead magnet.
- Make sure that your copy is focused on the benefits (the value the potential customer will get out of your lead magnet) as opposed to features (the qualities of your lead magnet, such as the number of pages, length of videos, etc.).
- Have a prominent call-to-action button that is impossible to miss. Better yet, have several of them!
You also want to add social proof to your lead magnet landing pages whenever possible.
You can use Google Analytics to get more high-quality leads.
But generating leads is not enough. You need to convert them into paying customers and then into repeat customers. And that’s what sales funnels are all about.
Our 5 Day Challenge will show you exactly how to implement them in your business.
You will learn how to:
- Generate unlimited leads.
- Create your first lead magnet.
- Build your first sales funnel.
- Create a simple 6-email follow-up sequence.
- And launch your funnel!
…in just five days.
So don’t hesitate.