Measuring and Documenting lead generation PERFORMANCE success
The idea on measuring your metrics and especially your lead generation strategy is that if you can measure it, you can improve it. This is an adaptation from Peter Drucker and certainly follows the lead generation approach to management optimization. Measuring and documenting lead generation is something that many companies struggle with according to RAIN group. You have to know how much each lead costs as well as knowing if the techniques you are employing are effective or not. In this article we will outline what you need to measure in order to be able to adapt your lead generation strategy to make it work even better!
So, what is it that you need to measure?
- Your Click Through Rate (CTR) which measures the performance of your Call to Action (CTA) button. This tells you how many people are clicking your CTA on any and all advertisements, emails or landing pages.
How you measure it: you can measure this by using A/B testing to see which CTA is working most effectively or you can use the formula of total number of clicks divided by total number of visitor’s times by 100.
- Your Conversion Rate is one of the most essential things you need to track, and it determines how many users are wither filling in your forms or emailing or clicking a button. Before you can measure your conversion rate you have to first identify what your goals are.
How you measure it: then you can measure the number of people who get to that goal by dividing the number of views by the actual leads you received.
- Time to Conversion tells you how long it took a visitor to become a lead. This is an important metric if you have long campaigns or a complex qualification process.
How you measure it: there is a very simple way you can track your time to conversion, you divide the total times spent by all visitors by the total number of leads.
- Return on Investment (ROI) which is another highly important metric that you need to be able to track as it measures how much money you earned from your initial investment. ROI is measure as a ratio or percentage value.
How you measure it: In order to get the full picture, you need to add up the total cost at every stage of your sales funnel and the money that you make per consumer. For example, if you spend a total of $750 on gaining leads, including creative costs. Maybe you make $1000 from these leads, then your ROI would be 25%.
For telemarketing, it is a bit different, it’s about things such as answer rate, dial attempts, interested people, and sales. With email marketing, again it’s important people understand that conversion rate is not the only thing to look at in the short term, because if you get good open rates and clicks then you have an ‘active’ user which shows interest and engagement. So, if they don’t convert in the first month - they’re still engaging, and you have a good chance of converting them later on.
These metrics only cover the performance of your campaign. You can use them to determine the impact that any campaign – landing page, advertisement or offer – has, however this is not the end of the story. If you want to be successful in documenting and measuring your lead generation efforts, you also have to measure your costs, your channel metrics, measure your sales after you get the leads and in the short-term CR shouldn’t be the only measure to look at in this part of the flow. This is what we will be filling you in on in the next two weeks! Please click subscribe and we’ll keep you in the loop.