The Acquisition Funnel is built to simulate the way businesses actually acquire customers in the real world. The model assumes that sales leads go through a series of steps, or conversions, and at each level a certain % of leads that take the next step are reduced before ultimately making a purchase.
For instance, when we advertise, or market, to a general audience (Leads per Month), a certain % of that general audience will take action based on our call-to-action (Conversion Rate). Sometimes there are a number of days in between a potential customer being exposed to our marketing and the point at which they take the desired action (Expected Days to Convert).
Acquisition Funnels utilize “Funnel Segments,” which are used to define the steps, or decisions, a potential customer takes on the path to making a purchase. You may use as many funnel segments as you would like for detailing your customer journey.
The month that you would like to begin forecasting customers for this acquisition channel.
Select the month you would like to stop forecasting customers from this channel. The month you select will be the final month of the projection and you will no longer acquire new customers in the subsequent months.
The total monthly budget spent on this customer acquisition channel.
Leads per Month
The total number of new leads generated through this channel each month.
Example: If you have a blog that reaches 1,000 new readers each month, then the blog is generating 1,000 leads per month.
Lead Generation Growth
The monthly % growth you expect in the number of Leads per Month.
Example: Your blog is currently reaching 1,000 new people every month, but you expect to grow that amount by 2% per month.
Duration of Growth
The total number of months that Lead Generation Growth takes place. After this period Leads per Month will remain flat.
Example: Your blog is currently reaching 1,000 new people every month, but you expect to grow readership by 2% per month for the next 6 months.
The % of leads that convert to a specific segment in the customer acquisition funnel.
Example: Of the total number of leads I generate from my blog, I expect 10% to sign up for my newsletter.
Expected Days to Convert
The average number of days it takes a lead to convert to a specific segment in the customer acquisition funnel.
Example: On average it takes each person at least 3 days from the time they first read my blog to the time they sign up for the newsletter.
Optimization per Month
The monthly % optimization in the Conversion Rate for a specific segment in the customer acquisition funnel (often achieved through fine-tuning your customer conversion efforts).
The total number of months that Optimization per Month takes place. After this period Leads per Month will remain flat.