For a lead generation strategy to be effective, it has to work on a solid foundation of data and not guesswork. You need to have authentic and accurate knowledge about the work you are in. Accordingly, you have to make decisions so that the chances of a positive result enhances manifolds.
Making use of the right metrics will help you identify and meet your objectives more convincingly. The focus that it will create will positively impact your business mechanism and help you discover what matters most. They work as a guide to your business prospects, thus allowing you to figure out where to allocate your resources and energy. It also helps you manage your time.
It supports you in your actions and helps you give a clear understanding of where you are at a given time. Analyzing the right metric is very important in generating leads for your business. Most marketers and salespeople are tracking these metrics for generating leads.
When you track the various metrics, it symbolizes that you are only scraping the top of the barrel. There are multiple metrics or generating leads that offer a more profound and complete insight into your performance’s intricacies. Your marketing and sales effort get a platform where you can adjudicate upon.
Now that you know what lead generation metrics are, let us discover a few of them;
Revenue and Return on Investment: The revenue generated should be a metric of primary importance to the client. It helps him judge whether the marketing is a failure or a success. Steve Cross of iSynergy, said that “Revenue generated is the only metric that should matter to a client.”
The metric of revenue and return on investment was the most important metric, as the marketers adjudicated. You need to keep close track of your investment returns and the revenue you are generating. It helps in measuring the profit the company is making. Besides this, it also enables you to decide whether you can afford to continue the current marketing scheme.
Organic Traffic: When it comes to judging sales and effectiveness, organic traffic makes a good KPI and metric to evaluate. If your search engine optimization is clicking the right point, your website will easily generate traffic. People will find your website in one click. Therefore your cost per lead goes down because you do not have to pay for every click on google.
If everything meets the google algorithmic requirements criteria, you will generate your reward in the form of rankings. A better ranking will help you generate more leads, provided your website is appropriately optimized for lead generation. Moreover, leads that you generate from organic traffic will cost you less per lead and acquisition numbers.
If you notice that you are not generating enough organic traffic, make sure to look at your SEO.
1. Time Spent on Page: Lead strategists have figured out that the amount of time a person spends on your website is directly proportional to the lead’s quality. Users that visit your page and quickly go through it before signing up are mostly price shoppers.
On the other hand, if a user spends time reading things on your page and understands your site’s offerings, they tend to strike discussions. They will discuss which particular activity will be preferable for their prospects.
You should track the time you spend on your page; this will give you an idea of how effective and engaging your content is. But it is very important to look for discrepancies. If your content is a long one, but the user’s time is calculatingly less, you must check the quality of your content.
2. Return on Advertisement Spend: ROAS refers to Return On Advertisement Spend. It is a marketing metric that determines the efficiency of your digital advertising campaign. It helps the businesses conduct an evaluation of their methods of working and figure out the drawbacks. If one does not have the vision towards the ultimate ROAS from their captured leads, they will fail to protect their campaign and business scale.
Despite it being a tedious job to calculate the return from your advertisements, it is still a necessity. A proper analysis of the ROAS will help you determine the future path of advertisement initiatives and efforts.
By keeping a close look into their ROAS, numerous eCommerce companies make adequate decisions. The decision is to where they would invest their money and increase their efficiency.
3. Customer Acquisition Cost: Keeping a tab on the customer acquisition cost is an important metric to determine your marketing campaign’s success. It helps you decide on which channel you should invest more money in. On the other hand, it assists you in determining whether the capital of your marketing budget is adequate or not.
Monitoring the intricacies of customer acquisition cost helps build an ability- the ability to structure any kind of prediction concerning marketing and sales. Everything depends on whether the marketing team can bring qualified leads to the sales team. If they maintain a buffer for sales well below the CAC mark, the company can witness a more significant investment return.
So you must understand how crucial a marketing team and its functioning below the Customer acquisition cost mark is!
4. Value of leads and their quality: Most of your lead generation strategy’s success depends on your leads’ value. How valuable the leads are and how good a quality they are, is what the companies look into as an important metric. The marketers of lead generation should figure out which leads have good quality enough to generate revenues.
There can be numerous leads down the tunnel, but finding the best ones out of them is the actual job. When you track your leads’ value, you get to understand which leads are beneficial to your business.
Accordingly, you make use of some and reject the others. Your lead’s value can help set reasonable cost benchmarks and set up a necessary budget for marketing campaigns.
5. Cost per lead and cost per acquisition: Without high-quality leads, you cannot generate good sales. One needs to make sure that they use profitable leads since the beginning of the business venture. Giving due attention to both lead quality and cost per metric is another important metric.
Cost per lead will let you know whether your investments are having a positive impact on the bottom line or not. If your marketing strategy is not producing enough profitable leads, it shows you are running at a loss.
You might be spending more than you get in return. Therefore, you should use such metrics to determine how much you can spend on a new customer.
If you cannot figure out how much you spend behind generating a lead, your business will not be cost-effective. It will hinder your attempts to track the profitability of your business. If you track the success behind the attempts, you will find it easier to distribute the resources among the best-performing campaigns.
Understanding your average transaction value will prove whether the cost per lead is low enough to continue with the advertisement. Thus, with the help of all this, you can measure marketing’s contribution to your business.
6. New meetings: The ultimate goal of a marketing team is to generate leads for the sales team. One can measure the marketing strategy’s efficiency if the sales team can bring up a new meeting on the MQL server. The number of new meetings shows the prospect of more recent consumers, thus increasing the chances for a greater return on investment.
7. CONVERSION RATE: Ruthie Bowles of Defy The Status Quo said that “Conversion rate can be your first KPI flag that something bad is happening with your lead generation efforts”. It alerts you that maybe the content on your site does not appeal to the visitors
Problems regarding its accessibility or generating the wrong audience traffic are other red signals it gives. Just tracking the lead generation is incomplete as it provides a half-hearted picture. You might generate only some leads, whereas the number of people who visit your site is huge.
With the conversion rate analysis in hand, you can determine what works well in generating prospects and what should be heading your initiative.
8. Customer lifetime value: An analysis of the customer lifetime value can help you make some crucial decisions. Decisions about how much you can afford to spend in your budget, allocate your budget, and which areas need a push forward.
CLTV plays a crucial role in modern bidding on online AD platforms like Google ads and Facebook ads. This metric facilitates automatic bidding concerning the customer lifetime value of the company.
Many companies fail to track their customer lifetime value. If you successfully track it, it gives you an idea of how much to spend on promotional marketing.
9. Channels of lead and attribution: One of the most important lead generation metrics should be tracking the number of interested prospects. It will help you adjudicate whether you have effective messaging and targeting techniques or you need to sort things from scratch.
- The following image is a graph representing the sectors of lead and attribution.
10. TIME TO FIRST CONTACT:
A company should track its time to first contact because it showcases its drawbacks. The fluctuations during that time before the first contact can have adverse impacts on your lead generation’s quality.
If a company’s sales team is not responding to the leads in quick succession, it is missing out on a lot of opportunities. The marketers will have a tough time judging the leads’ quality if the sales team is not prompt with their response.
11. TIME TO CLOSE: One of the lesser-known KPIs or metrics is the time to close. Generally, it is not considered a marketing metric, but it can act as an effective barometer. The time to close can help you understand the quality of your leads.
Tracking the time to close can help the marketers and salespeople figure out the system’s pros and cons. Whether the content lacks or the MQLs have an insufficient qualification- everything gets exposed.
12. CAPTURE RATE VS CONVERSION RATE:
Capture rate helps you measure the percentage of the new traffic that provided their contact or other information on the website. When you compare the capture rate of your website to the conversion rate, your result comes out.
Depending on the result, you can figure out whether you are generating sufficient customers or your leads are lacking in converting them into one, i.e. prospects to customers.
13. TRAFFIC TO LEAD RATIO: This particular KPI or metric helps the marketers determine the effectiveness and the ineffective aspects of the landing pages. You may find the traffic to your website increasing, but the traffic to lead ratio showing a downward trend.
It symbolizes that there is some discrepancy concerning the content, some technique, or offers’ alignment.
The above image is a visual representation of the process of traffic to leads.
The traffic to lead ratio metric helps you determine the relevance of the traffic to your website.
Daisy Campbell of CANZ marketing explains that “Higher relevance allows for better content ideas and can increase lead conversion rates as well. The more specific you are with your marketing, the better.”
The conversion rate from visitors to leads shows how effective your website is to transform casual visitors into prominent customers. The ways to increase this conversion rate are improving the call-to-action landing pages and implementing lead generation forms.
14. Website engagement: You should track the number of engaged prospects on your website. Taking note of the number of engaged customers that meet your defined criteria shows how successful you are.
It is a great indication that you succeeded in your lead generation efforts and raising demands.
Kulman explains that “A key indicator of whether you’ll grow valuable lead volume is if you’re creating a growing audience of highly engaged prospects who value your content enough to return over time and continue to engage throughout their B2B research and buying process.”
A close analysis of the bounce rate helps you figure out where the discrepancies lie in the lead-generating funnel. Besides this, the bounce rate’s positive impact directly affects the other metrics such as time-on-site and session length.
Tracking engagements, especially on social media marketing sites, is very necessary. You need to take a note about what content is getting a reaction out of the people. The likes, shares, and comments on the posts will help you adjudicate this lead-generating concern.
15. Media efficiency ratio: This metric’s structure helps to calculate the returns from online and offline marketing campaigns. One can calculate it by dividing the total revenue by the total budget allocated to a particular campaign.
16. Performance of a keyword: Keyword plays a huge role in search engine optimization. This particular metric analyses the keywords on the amount of traffic they generate. Thus, it helps you determine which keyword is more efficient and gives you an idea to use it more.
17. LANDING PAGE NEW CONTACTS: This metric helps you differentiate between an old visitor and a new visitor to your website. It proves how effective your website content is, depending on the number of new prospects filling out the landing page forms.
18. ORGANIC LEAD GENERATION VS PAID LEAD GENERATION: This metric compares the organic marketing strategies and the paid marketing propaganda. If you find out that your organic lead generation is more successful than the paid ones, you can cut down your money spent on paid marketing.
You need to arrange your lead generation efforts in a proper sequence to increase its efficiency. With the help of the various metrics, you can judge which lead generation strategy is successful. Depending on the results of the metrics, you can determine which particular strategy you should discard.
After going through the above lead generation metrics, you can understand how each of them has its relevance. Based on your company, its goals, and strategy, you should decide which metric is beneficial to your cause.