You put a lot of time and thought — not to mention budget — into your online marketing efforts. But how well is your online marketing paying off when it comes to lead generation? Without measuring and monitoring some important lead generation metrics, you could be missing out on potential prospects. Here's how to figure out what lead generation metrics you and your team should be keeping an eye on.
Keep in mind that the specific metrics you measure will vary based on your business, your sales process, your business goals and the goals of your particular online marketing campaign. For example, if you have a B2C business, you may be more concerned about generating a high volume of leads. If you own a B2B business, your primary goal is more likely to be getting high-quality leads.
Here are some lead generation metrics to measure:
Cost per lead
Once a particular online marketing campaign is complete, measure the total cost of the campaign compared to the number of leads generated. For instance, if a campaign costs you $1,000 and generates 100 leads, your cost per lead is $10.
Percentage of qualified leads
In order to measure this, first make sure that your marketing and sales teams agree on the definition of exactly what a qualified lead is. What criteria does a lead need to meet in order to fit your ideal target market? Lead Stream works with your business to define your ideal target customer and help you attract more of them through search engine optimization and more.
Average lead response time
Once you've generated a lead, how long on average does it take you to respond to it? Speed is of the essence: If your competitor is faster on the draw, they may lure the lead away before you ever make contact. Using a lead management tool like Lead Stream can help. Lead Stream notifies you of new leads and lets you respond to them automatically so you never lose a lead.
Cost per click (CPC)
Are you using pay-per-click ads for lead generation? If so, tracking the cost per click or CPC will help you budget for your ad campaign, and determine which campaigns are most cost-effective so you can get more bang for your buck. Lead Stream monitors your ad spending so you always know what to expect.
Click-through rate (CTR)
How well are your online calls to action working? By measuring the percentage of viewers who click on your CTAs, you'll be able to evaluate the effectiveness of your offers. This will help you fine-tune your CTAs for better results.
Once they click through, what percentage of prospects actually takes the action you want them to? This can mean filling out a form, signing up for your email newsletter, scheduling an appointment or calling you to learn more — whatever your call to action is for that particular marketing campaign.
Lead to close ratio
Generating a lot of leads is great, but what really matters is how many of the leads actually purchase something. Keep track of your lead to close ratio (the number of sales closed divided by number of leads). If this ratio is not improving, you need to work on attracting more qualified leads. Lead Stream can help by continuously bringing you better, more targeted leads that are more likely to convert.
There's a lot to keep track of when it comes to monitoring the success of your lead generation efforts. Lead Stream helps make it easy by tracking leads and missed calls, monitoring performance metrics, and putting ad spend details at your fingertips through the Lead Stream dashboard.