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.
Identifying Right Lead Generation Metrics and KPIs
When it comes to KPIs, you can’t just go with a one size fits all mentality. Every company is different, with its own goals, target customers, and processes. Therefore, the approach to lead generation and customer acquisition will also differ. To figure out the right metrics for your business, you need to take your business goals into account.
There are some key aspects to identify these metrics which include:
The target audience is the key to understanding what kind of business you are selling to. Are you trying to attract a small business or an enterprise? The answer to this question will help you determine the best lead generation KPIs and metrics for your business. Here are three questions you should ask yourself in order to fully understand your target audience:
1) Who is the customer profile?
2) What industry or domain are they in?
3) What channels should you engage with them on?
Type of Business
Lead generation for marketing purposes can vary greatly depending on what type of business you have. B2B and B2C businesses require different approaches, and even within those categories, there are many different types of businesses that will require unique strategies. The key is to identify which metrics and KPIs will help increase your customer base for your specific type of business.
Type of Pricing Model
Pricing is an important tool for understanding how much you need to spend on acquiring new leads. The right pricing can help you identify the most effective lead generation channels and understand the metrics that matter for your business.
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 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 known 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
Here are some other Metrics you should know about.
What are Lead Generation Metrics and KPIs based on Channels?
The metrics and KPIs for lead generation vary depending on the marketing channels that a business uses. An overview of channel-wise performance can help optimize a demand generation funnel by appropriately assigning budgets to the highest-performing channels.
Content-driven marketing is an effective way to generate leads by targeting the right traffic. It’s important to understand your target audience so you can get them interested in your business. SEO activities attract valuable traffic and potential customers. By improving your website’s ranking in search results, you can reach more people who are interested in your business.
Paid ads on social media platforms like Facebook and Twitter can be extremely beneficial for getting relevant traffic to your site quickly. PPC ads are a great way to reach more customers and better engage with your social media followers.
Public Relation (PR)
Public relations channels have always been a powerful way to influence audiences and get them to take action. If you want to generate more qualified leads for your business, some great PR tactics to try are editorial outreach through magazines or newspapers, sharing media on Facebook or using Twitter handle, and participating in events.
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.