“If your campaign generated multiple leads, does that automatically make it successful?”
This is a question that a lot of marketers often ask because, in lead generation, there are different parameters for success.
In this short brief, we will show you the proper way of assessing if you’ve hit your KPIs when it comes to lead generation. We will also tell you why it’s essential to measure your lead gen campaign’s success rate.
Arguably, your conversion rate is the most important metric because it signifies how many leads have made it to the next stage of your sales pipeline. This is a traditionally a website conversion metric but applies to your sales pipeline.
Take, for example, the number of your leads that you reach and how many make it to the next stage of the cycle. It shows you how successful a specific channel of a campaign is.
Leads to Qualified Leads
Generating leads is easy, but if they are not qualified to buy, then they won’t convert, making them unusable leads to begin with. One way of measuring your lead generation’s success is the quality of leads that you are getting.
It is alright to have a couple of leads that are not qualified to buy, but if a significant number of your leads can’t convert due to their qualifications, then it’s a waste of resources.
The average number of qualified leads should be at the fifty percent mark, and it is lower then the lead generation strategy should be reconsidered or restructured. This is where techniques in B2B such as account-based marketing come into play because they allow for a more targeted approach to lead acquisition.
This is an efficiency ratio; the more efficient you are at getting qualified leads, the more successful the campaign.
Time to Conversion
This particular metric is not only crucial for a product with a longer sales cycle but for everything else, too. For products with longer sales cycles, it measures if a current campaign is still within the benchmarks of a sale. For the latter, it allows you to check for possible pain points, and distractions that could be arising during that makes the sales process longer.
By analyzing the time it takes to convert, you can check on factors to make the sale more accessible to your potential buyers. Reduced time to conversion means that your buyers are less distracted during the sales process and that they are more compelled to buy.
Your CTR is used to analyze how effective your web properties are doing with their call-to-action (CTA) placements. By being able to examine this metric, you can check if your ad copy is working or if you should change out some elements to optimize your conversion rate.
This is a measure of the effectiveness of your digital lead generation strategy. The higher the CTR, the better the ad copy and the elements are in drawing out a conversion.
ROI (Return on Investment) & Cost Per Lead
A campaign is not one-sided, and it will ultimately mean a combination of multiple channels of lead nurturing to garner a sale. Think about telemarketing combined with Facebook retargeting with some LinkedIn work thrown in between. All of these factors will cost effort and fiscal resources, so being able to divide how many leads you got from a multifaceted campaign will determine your ROI.
Another important metric here is your cost per lead. Once you’ve tallied up the leads you’ve gotten from a campaign, you have to divide how much you spent on that number. This allows you to have a more strategic view of success.
Looking for your Explainer Variable
Some of these methods are arguably subjective and won’t paint an accurate picture if taken individually, and this is the reason why you have to look for your explainer variable.
How about if you have the same ROI, but your time to conversion is reduced?
There has to be something that explains this phenomenon. It could be that your information dissemination campaign is more precise or it could have been that your telemarketing division has been more diligent.
Success in lead generation is not just how many people you’ve converted or a higher ROI, but it is also the continuous effort in pushing for the scalability of your efforts. By looking for more efficient ways of handling your lead generation and singling out your explainer variables, you can quickly scale your business model.
Scalability and the potential for growth is a better determinant of lead generation success because you can’t have a stagnant process.
The only surefire way for you to be able to generate more leads is to examine what you are doing today and adapt to the current trends. Remember the lack of a feedback system means the absence of a system that allows you to get better. In lead generation and lead nurturing, you are not permitted to second-best.
Is your feedback system ready to face the challenges of the future?