Are you ready to get a grip on your business?
As Chief Zilla here at Designzillas, my bread and butter is growth. Not only growth for my own business, but helping our partners achieve the growth they want to see. Today, I'm going to walk you through a simple exercise that you can bring to your organization. This exercise will help your team get on the same page and align themselves towards growth.
Sound good? Let's get started!
Let's jump into building our current funnel.
- The first step in this growth model is determining the average monthly visitors to your website. So simply, how many visitors do you have? Let's say your average is 2,000 visitors a month.
- The second step is determining how many leads your website is generating on average every month. Let's say you are averaging 40 leads a month. That means you are converting 2% of your website visitors to leads.
- Now, of those 40 leads, perhaps your sales team is closing two deals every month, on average. So, you are converting 5% of your leads to customers.
- Next is to look at what the average client is spending per month. In this example, lets say thats $15,000, for a total of $30,000 in revenue every month.
Here's where the growth comes in. So you come to me and say, "Johnny, I want to grow revenue by 20%." Well, you're in luck, because I can reverse engineer this to help you see what those new numbers need to look like in order to help you achieve that goal.
- Now we are going to start from the bottom of the funnel. In this example, we are going to keep the conversion rates the same for simplicity's sake, and just calculate how many website visitors you need to achieve your intended growth.
- A 20% growth of revenue would be $36,000. That's our target. Our average spend per customer is still $15,000, so we need to understand how many actual customers we need to generate each month to achieve that number.
- We simply look at our target revenue of $36,000, and divide by the average spend per customer of $15,000, for a result of 2.4 customers a month.
- Given our 5% lead to customer conversion rate, that means the sales team needs to receive 48 leads a month.
- Now, at a 2% conversion rate from website visitors to leads, we can determine that we need 2400 website visitors a month in order to achieve your goal.
Now that we know what our target is, we need to ask ourselves a couple of questions.
- "How can I be generating that many more visitors to my website?"
- "How can I be increasing these ratios?"
We're here to help answer those questions. Stay tuned for future blogs and Zilla Casts that will go more in depth on those qualities.
Thanks for tuning in!
Hearing about growth-driven design for the first time? Learn more about the three pillars of GDD and how this methodology can help you solve your greatest marketing challenges.