“What gets measured, gets managed.” – Peter Drucker
Wouldn’t it be awesome if you knew the exact marketing channels that were bringing the highest-value subscribers into your business?
Luckily, this is easier than you’d think.
Today, I’m going to show you how to use Drip’s simple conversion tracking to answer some powerful questions in your business.
- What’s the average conversion rate of your drip email sequence?
- Which email in your sequence closes the most sales?
- What’s your average value per email lead from Facebook advertising? How does that compare to Google AdWords?
- Which Facebook targeting options get you the most PROFITABLE email subscribers? (Hint: it’s not always the audience with the cheapest cost-per-lead …)
And tons more.
Even better, I’m going to show you how to answer these questions without touching Google Analytics or any expensive analytics software. (Although Drip works with your existing analytics setup, too, if you’ve got one.)
So if you haven’t yet tried conversion tracking with Drip, now’s a great time to…
Here’s what we’re going to cover:
- Get to Know Drip Conversion Tracking in 1 Minute
- How Conversion Attribution Works in Drip
- Viewing Conversion Rates on Email Drip Sequences
- Viewing Conversion Rates on Individual Emails
- Viewing Conversion Rates by Subscriber Tag
- Viewing Conversion Rates by Lead Source
- Calculating Value Per Subscriber (VPS), Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC), and More
Let’s dive in.
Get Familiar with Drip Conversion Tracking (in 60 Seconds Flat)
Before you can see how leads are converting into sales, you’ll need to set up a conversion in Drip.
Don’t worry too much about which conversion to track. It’s more important that you start tracking something.
- If you’re a consultant or agency: you probably want to track appointments or bookings.
- If you’re a SaaS company: you probably want to track new sign-ups or trials.
- If you sell physical or digital products: you’ll want to track purchases.
With that out of the way, let’s take a look at the two main ways to track conversions in Drip.
The first (and most common) is to use visits to a thank you URL. Just like in Google Analytics.
Click below to watch our quick video on how to set this up.
Step #1: Head Over to Analytics > Conversions
Step #2: Click “Configure a New Conversion”
Step #3: Add Your Thank You URL, Default Value, and Conversion Name
Note: Default Value is optional, but I encourage you to enter a value. If you’re tracking a goal that’s not directly tied to revenue (like a consultation), just estimate how much it’s worth based on your average closing rate.
If you don’t use a universal thank-you page for conversions, just leave the URL field blank. In this case, you’ll want to track conversions via API or via Drip’s integration with your payment provider.
Let’s take a look at how to set up the latter.
How to Track Conversions Automatically via Stripe, Paypal, SamCart, Authorize.net, and Other Payment Providers
Here’s how to trigger conversions via Drip’s integration with your payment provider.
First, you need to integrate Drip with your payment provider. Depending on your payment provider, this will only take a few clicks.
Next, head over to Automation > New Rule to create a new rule. Set the trigger to “Made a purchase” and the action to “Record a conversion”—using the conversion you configured in the previous step.
At this point, you’re done!
When someone makes a purchase via your payment provider, Drip will automatically record the sale and attribute the conversion to the most recent email in Drip.
And as you start collecting conversions, Drip will automatically populate conversion reports with your data under Analytics > Conversions). It’s really that simple.
A Quick Note on How Conversion Attribution Works in Drip
Note: If you’re curious, here’s the technical low-down on how conversion attribution works in Drip. If you don’t much care about the technical details, feel free to skip ahead to the next section: Conversion Reports by Campaign.
To convert by visiting a page, a subscriber needs a cookie. Drip can cookie them either when they subscribe or when they click through from an email sent by Drip.
So if a subscriber had been receiving emails as part of multiple campaigns or broadcasts, credit would go to the one from which they’d received an email most recently. We will attribute a conversion to a delivery even if we don’t have an open or click event for it, since open tracking is not 100% accurate.
Now that you’ve got a conversion set up, let’s take a look at three Drip reports, and how to use them to make data-driven decisions.
Conversions Reports by Campaign
Let’s suppose you’ve set up a conversion called Became a Customer.
If you specified a conversion value in the steps above, Drip will automatically keep track of your total conversion value (i.e. total revenue) over any given time frame. But that’s just the beginning.
Let’s choose Campaign Level in the dropdown on the left. This shows your total conversions, conversion rate, and conversion value for a specific campaign (AKA autoresponder series). Like this:
This answers the question “what’s the average conversion rate of our autoresponder series?” down to the decimal.
It also shows you the gross revenue generated by the campaign over a given time period. So if you’re using a campaign with only one lead source—say, LinkedIn advertising—this lets you quickly compare your ad costs in LinkedIn against the revenue eventually generated from those leads.
Let’s look at what else you can do with this data.
- If you’re a business owner doing it all: You can test your assumptions about email. Is email really dead? Is your newsletter working? Can you afford to pay a marketer to manage this for you?
- If you’re part of a company’s marketing team: Prove how much revenue you’re driving with your email strategy. Use this data in your next meeting, instead of defaulting to the HiPPO. Disagree with a colleague about whether to continue a campaign? Let the data make the decision.
- If you run a marketing agency: Guess what? If you can prove to clients how much you’re worth, you’ll get more referrals, less pushback on price, and more mouthwatering reports for case studies. (E.g. “They helped us get a 500% ROI.”)
And as it turns out, selling marketing automation as a service is a pretty sweet gig.
But Drip doesn’t stop at tracking campaigns …
Conversion Reports for Individual Emails
When viewing a conversion in Drip at the campaign level, the default view is All Emails.
This gives you an average conversion rate for the entire sequence.
But you can also view conversion data for specific emails. This lets you see which individual emails are closing the sale.
You can also see campaign conversions in real time.
When looking at any conversion, head over to the Subscribers tab at the top. That will bring you to a view like this.
The Attributed Delivery tab shows you the email that Drip attributes to the conversion to.
If you’re prepping for a sales call or consultation, this data can be incredibly powerful. You can see which email caused a lead to book a call. This lets you tailor your consultation to the angle in the email, and get inside the buyer’s mindset before you ever pick up the phone.
But even that’s not the full extent of Drip’s conversion reports.
If you really want to gain an unfair advantage, you’ll want to start tagging subscribers liberally. Tag people by lead source, industry, pages visited, content viewed, products purchased, links clicked, and more.
That’s because the single-most powerful report in your Drip account relies on segmenting conversion by tags.
Conversion Reports by Subscriber Tag
Let’s take a look at how this works.
Suppose you sell a $997 course on growth hacking.
You’ve set up a conversion called “Became a Customer” for everyone who buys your course via Stripe.
And let’s just say you want a detailed profile of the customers who are buying your workshop.
Worth repeating: for this report to be useful to you, you NEED to tag prospects at every turn.
One easy way to do this is to survey leads right when they enter your funnel. With a few Trigger Links in your welcome email or “thank you” page, this is simple enough.
Here’s how Eric Siu from Single Grain surveys readers with Trigger Links on his “thank you” page.
Eric tags prospects by the stage of their business on his “thank you” page. You can do the same for industry, area of interest, or any other attribute you can dream up.
This is where the real fun begins.
You’re tagging contacts at every turn.
You’re profiling contacts on your “thank you” page.
Leads are going through your funnel and recording conversions.
Now head back to Analytics > Conversions.
This time, instead of clicking Campaign Level, we’re going to click Tag Level.
Let’s suppose you’re tagging people based on the industry they work in. You could do this with Trigger Links in your “thank you” page or in your welcome email.
Type in SaaS, to see conversions for people who work in the SaaS industry. Behold: you can see all of your course sales, segmented down to leads who work in SaaS.
Now you know:
- How many total SaaS customers you have (“Conversions”)
- How much revenue you’ve made from those customers (“Conversion Value”)
- How likely an average SaaS lead is to purchase your course (“Conversion Rate”)
Compare that last number to, say, the conversion rate of leads who work in other industries.
You can imagine that decisions that this report lets you make.
And since you can tag prospects with whatever you want (have I said “tag liberally” enough yet?), you can also use tags to segment your conversions by lead source.
This stuff is scary powerful.
Heads up: If you want to tag leads by specific audiences or ad groups in pay-per-click (like Facebook ads or Google AdWords), this is totally possible with Drip Source Tagging. Check out our video training below to learn how to set up DST in your ad campaigns, in under 5 minutes and without writing code.
Let’s suppose you’re tagging people by lead source.
If you drive YouTube ads traffic to a Leadpage, you might want to tag folks “youtubeads.” This will let you track whether YouTube leads actually convert.
Here’s what that workflow might look like.
Now you can check your Tag Level report and type in youtubeads to see your YouTube leads (and only your YouTube leads) converting in real time.
Observation: you might be surprised to find that your cheapest source of leads is NOT the most profitable.
Very often, there are channels that cost marginally more per lead—but convert at a significantly higher rate.
If you don’t track lead conversion, you won’t know.
How to Work Backwards to Find Your ROI on (Almost) Any Marketing Effort Using Drip
To get started, I’d encourage you to set up a conversion goal in Drip, which takes about 60 seconds using the steps outlined above.
But if you want to go deeper down the rabbit hole, you can get pretty advanced with Drip conversion reports.
I’ll give you one final example.
Let’s suppose you spent $1,000 on Facebook ads in the month of June.
You tagged contacts “facebookeads-june” in your workflow—so you could look at conversions later.
Once you’ve given people some time to convert, go ahead and check your conversions.
To start, you might check your Facebook ad campaign costs. For this example, you’d want to check your costs from June 1–30.
Compare that to the value that those leads went on to generate in your Drip conversion report.
If you segment conversions by contacts tagged “facebookads-june,” you can see how your June Facebook cohort converts over time.
This strategy isn’t just for Facebook ads.
With Drip’s Workflows, you can tag opt-ins from:
- Google AdWords
- Guest posts (segmented by individual sites)
- Podcast appearances
- Trade shows
- Niche sponsorships
And tons more.
This lets you see exactly which lead sources bring you the highest-value subscribers.
And once you start tracking conversions, it’s only a matter of time before you find insights that will drive serious growth in your business.
Here are some other recommended posts and tools to bookmark, if you want to calculate value-per-subscriber, customer lifetime value (right inside of Drip), and more:
- How to Track CLV with a lifetime_value Field in Drip
- What’s a conversion worth? (Or, How to Easily Calculate Revenue Per Subscriber)
- Value Per Email Subscriber Calculator from Drip
- Brian Balfour: Your Average Customer-Acquisition-Cost is Lying to You
Start Tracking Every Conversion in Your Business with Drip
Ready to start reverse-engineering your best marketing channels?
Drip integrates with Stripe, Paypal, Authorize.net, SamCart, and more, so you can create an account, set up a conversion, and play around with the tool. Even on Drip’s forever-free plan (capped at 100 contacts).
So if you haven’t yet tried conversion tracking with Drip, now’s a great time to…
Questions for the comments: Do you track the value of your email subscribers over time? If so, what’s the biggest insight you’ve found from tracking?