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Let's say you're a company with a product that has a team of marketing and sales staff that are working hard to convince everyone to buy your product. You have a great ongoing sales funnel that is driving all of that traffic, but the real sales are happening through someone that you don't know. Maybe they saw someone else using your device and decided to buy it, maybe they got it as a gift, or maybe a friend told them about it. The point is that there may not be a one-to-one correlation between your traffic funnel and your sales funnel. That's why it's important to know which of those avenues are being translated into sales.

Now that you know which sales avenues are responsible for your unit gross, it's time to figure out which channel is the most profitable. The most significant channel in the chain has high profit margin, low cost of goods sold, and low inventory carrying cost.

For our case study, that means identifying the channels that can make the most profit for us. We start our analysis by looking at the channels that don’t have one-to-one correlation with our sales funnel.

We want to make sure they're really good channels before we invest any time in them, so we'll brainstorm all potential web traffic sources that could be converting into sales. In addition to this, we will analyze them using a few different tools, including Google Search, Google Trends, and AMPS, and see how they are performing against large segments of the internet.

This sales funnel analysis typically takes from 2 to 4 weeks, depending on the number and variety of channels that you're trying to analyze, along with the time it takes to actually analyze them. The time goes up even more if you have to look at revenue and profit margin data on each individual channel. d2c66b5586

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