5 Lead Generation Metrics to Measure A Company’s Performance
Lead generation metrics can tell a lot about your venture. The work of a metric is to measure the performance of a company. Lead generation metrics also help in assessing promotions, sales strategies, products, etc. Additionally, with the help of the metrics, you can also check if they have the exact impact on your brand and if it’s performing up to the set standards.
Here are some lead generation metrics that can streamline your project performance and analysis
Click-Through Rate (CTR)
A CTR works in alignment to measure the clicking performance or any call-to-action tool (CTA). CTR shows the percentage of clicks on the CTA, links, emails, or promotions. Ideally, a good lead generation campaign must comprises of multiple call-to-action tools. By bifurcating stages of a campaign, a business should engage in identifying a CTA tool and measurement of the CTR. As complex as the metric sounds, on the contrary it can actually be very easy even for a beginner. You can calculate CTR by using the formula given below –
(Total number of clicks/total number of visitors) * 100
The conversion rate metric can help you establish the percentage of lead generation by an organization that performs a specific action on an email, ad, or landing page. The ‘specific action’ can be set by the company. Potentially these actions can be – downloading a brochure or an e-book, making a purchase, etc. Lastly, to focus on lead generation conversion rates imperatively needs monitoring, you can find some in the list below –
Visitors-to-lead is the number of visitors that convert into becoming verified leads.
Leads- to-opportunity is the number of leads that are sent to the sales team to expedite a sale or turn leads into opportunities.
An opportunity-to-win is the number of opportunities that end up converting into a sale. Given it can also be know as a lead conversion rate.
Time To Conversion
The time to conversion metric is extremely useful for businesses in the sense that it displays the amount of time a visitor needs to become a verifiable lead. It is vital for promotional campaigns to keep a track of the total time to conversion at every stage. Tracking time offers a clear picture of the time one may require to analyze the length of the sales cycle. You can easily track time to conversion by using the following formula –
(Total time spent by all visitors/total number of leads)
Cost Per Click (CPC)
Several organizations are employing contemporary tools like paid advertising to channel greater amounts of traffic into their system. According to a study, paid advertising can potentially help increase brand awareness by at least 80%. Additionally, Google Ads has been found to reach a network of more than 2 million websites and applications.
As per the context above, the CPC metric is essential. Advertisers must incur CPC costs for every click under their ad by the user. Generating huge traffic sounds best only until it stops returning profit. Here, an ad becomes an obligation, and the best you can do in this instance is avoid employing ads.
Return On Investment (ROI)
Return On Investment is a percentage value or ratio that provides the owners and investors the answer to one of the most pressing questions i.e. the return of the business is enough to justify the forward-moving course. To get an intricate overview of the ROI from a campaign, the calculation must be inclusive of the total cost of a campaign and potential income from each customer, also known as (Customer Lifetime Value – CLTV).
Furthermore, additional details can be set up by measuring the following –
- The cost of building offers and products, supporting content, etc
- Total capital expenditure spent on traffic through ads, PR, social media, etc
- Approximate profit from individual lead with a potential to convert
The metrics above are some of the vital ones that your organization may consider employing. Furthermore, these key metrics can empower ventures to track their growth and identify the funnel gaps. Establishing thorough insights using these metrics is the best move for any marketer.