So you’ve embarked on a campaign designed to generate more leads for your business. Is it going well?
Great! How do you know?
Even if you created a 100-page, mega-detailed campaign plan, it’s nothing without designated metrics. If you can’t tell how the plan is going, you can’t track progress and determine what needs to be tweaked to create a better campaign.
Below are three basic lead generation metrics everyone should track when running any sort of marketing activity designed to generate leads.
1. Conversion Rate
Your conversion rate can come in many different forms. The important thing to note here is that you design your own conversion rate. When people visit your website, what action do you want them to complete?
You could guide them to fill out a form, call your phone number, or make a purchase. The definition of your conversion rate depends on the unique nature of your business and your marketing campaign. If you’re old school, your definition of a conversion could even be a customer calling a vanity number on a print advertisement.
To find your conversion rate, take the number of people who converted divided by the number of total people who saw your phone number on your website or viewed the landing page with your form on it and multiply it by 100. For example, if 200 people came to your website and 10 filled out your form, that’s a conversion rate of (10/200)*100 or 5%.
What’s a good conversion rate? That depends on a number of factors, but we recommend measuring against your own baseline. Keep track of your conversion rate over a period of time and over multiple campaigns. If what you’re doing improves your conversion rate, keep up the good work. If your conversion rate falls, make some changes to your marketing efforts.
For your first campaign, work to achieve at least a 5% conversion rate. That may seem low but it’s actually a pretty solid number for a successful campaign!
2. Close Rate
You can generate hundreds of leads through successful conversions, but you need to make sure those leads are quality. This is where the close rate comes in.
Say you achieve a 5% conversion rate and generate 15 leads, but you don’t close any sales. These leads are not quality. There is a high potential you are not successfully reaching your target audience. If this is the case, you need to adjust your campaign tactics.
Alternatively, if you achieve that 5% conversion rate, generate 15 leads, and close 10 sales, that’s an extremely successful campaign! Talk to the customers from the closed sales and ask them what led them to visit your website and ultimately fill out your form or call your phone number. Picking your customers’ brains will give you a much better understanding of what marketing elements to carry over to your next campaign and which ones to ditch.
This seems obvious, but it’s important to note! If you’re seeing more successful conversions and closing more deals, your revenue should increase. If you feel like you’re converting and closing more leads but your revenue doesn’t budge, something’s wrong.
Take careful note of the exact number of leads you generate and close before and during the campaign. Then use these numbers as a baseline for future campaigns. As they increase, so will your revenue.
These are three basic metrics for tracking lead generation, but they apply to every marketer and salesperson. Successful business growth depends on quality lead generation, which depends on marketers using the best possible techniques in their campaigns.
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