The 6 Most Important Sales Funnel Metrics For Any Business

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I’m sure you know that if you want to scale your business predictably and to whatever degree you like, you need to master paid traffic.

In my experience, the most successful strategy to convert paid traffic from Google, Facebook, Twitter, YouTube or anywhere else into paying customers is by building an intelligent sales funnel that consists of:

  • A Lead Magnet to acquire new leads (this may be an email opt-in, a walk in if you’re a dental clinic or similar, or a physical address)
  • A Lead Nurture sequence to build trust with your brand, educate your prospects about their problems and provide solutions to help them solve those problems.
  • An Offering (including upsell and downsell offers) to convert leads into customers
  • A Customer Retention strategy to increase the Lifetime Customer Value of your clients and customers over time.

This works far more effectively than sending cold traffic straight to a sales page on a website in my experience, however, there are other challenges that will arise from using this more complex marketing funnel:

  1. It takes time for leads to convert to customers (we want to minimize this).
  2. It takes time to break even on your advertising spend
  3. It may be a challenge for you to accurately calculate your Lifetime Customer Value, so that you know how much you can spend on acquiring new customers (especially if you have recently started selling new offerings, or if you have a continuity program that you have not been selling for long)

In this article I will tell you the most important metrics you need to know if you are to truly succeed at growing your business using paid traffic:

As Jay Abraham always says, the fastest way to grow any business is:

  • to increase the average size of transaction,
  • to increase the number of customers,
  • to increase the frequency of transactions, or
  • to reduce costs.

Let’s take a look at the six most important sales funnel metrics you need to know to grow your business at a sustainable, predictable and optimal pace.

1. The average time to convert leads into customers

You need to know the time for a new opt in to go through the intelligent components of your funnel and buy your products and services.

You should be aiming to minimize the time it takes to convert leads into customers, so I personally recommend any business to offer front end products and services immediately when a new leads signs up for free information.

2. The time it takes to break even on your ad spend

Why? Because you need to know how long it takes to get back the money you have invested on acquiring new leads, so that you can grow your business at an optimal pace. 

3. Your Customer Lifetime Value (CLV, sometimes called Life Time Value – LTV)

Knowing your CLV is incredibly important, because if you spend more than your CLV on paid traffic, your business will go deeper and deeper into the red.

The competitor in any market who can afford to spend the most money to acquire a new customer will win in the end.

This is another reason why you should always be looking to boost your CLV by raising your prices (I recommend price split testing), ascending your customers up your value ladder to higher and higher ticket offerings, and selling other offers to your customers.

During times when an economy or market situation is bad, it will become more costly to acquire new customers, which is why you absolutely need to find ways to boost your CLV. The easiest way is to raise your prices and sell products and services to the affluent.

During a recession, affluent people will continue to spend money on luxury items and non-necessities because they will be spending a lower percentage of their incomes on necessities than people with less money.

If you are selling lower priced products and services to people with less money to spend, they will stop buying from you when they need to reduce their spending in a recession.

By knowing the three metrics mentioned above, you now have the foundational roadmap to grow your business at a pace you can sustain.

4. Your Cost Per Lead (CPL)

It goes without saying that it is essential for you to know your cost per lead, especially because you should also know if your CPL is lower than your:

5. Your Average Dollar Per Lead (DPL)

Note that it is important to know the average amount of dollars you will earn from each lead (not just from each customer).

6. Your Average Order Value

This metric is quite straight forward to work out. It is simply the total number of sales numbers divided by the average number of orders.

Now you can scale your business at the pace you want. Just like your customer lifetime value, this is a metric that you want to always be growing.

Beating The Competition

If you compare your numbers to your competitor’s numbers, who has the better numbers?

Who has crafted the shortest amount of time to break even on their ad spend?

Who has mastered and maximized the Lifetime Value of a client?

Get familiar with all of your key metrics and use a smart sales funnel strategy in everything you do, because this is what will turn a six figure business into a seven or eight figure business.

Leave a comment below and let me know your thoughts on this article!


About The Author

Luke Ward

Luke Ward is the founder of He is an Ontraport Certified Consultant and sales funnel specialist. Please contact Luke today if you're looking for sales funnel builds, marketing automation advice or migrations to Ontraport from other systems.