Track, measure and adjust
with Lead Measurement
What is lead measurement?
Lead measurement (or lead metrics) is the process of tracking and measuring response from various lead generation and lead nurturing activities.
It is essential for the continued improvement of your sales lead program.
Leads are most effectively measured when they look at both lead quantity and lead quality.
Additionally, response should be measured against costs to take into account the fact that marketing costs vary from one activity to another.
By tracking and measuring every marketing activity – and segments within those activities – you can see what’s working and what needs improving.
With this measurement data at your fingertips, you can begin to make adjustments with confidence.
How leads are measured
Lead measurement is recommended for everyone, but how you measure will vary from one organization to another:
- Response Rates – the most basic of lead measurement – a good starting point, but offers limited information
- Qualified Lead Rates – takes into account how many of your initial responses are qualified leads – an effective and necessary benchmark when your sales cycle is long.
- Order Rate – the best of all metrics because it tells you how many people actually bought – but long sales cycles means you don’t get this data for a long time, sometimes too long to be useful.
- Cost per Response – adds marketing investment to the equation – effective when comparing response from multiple media where costs vary widely.
- Cost per Qualified Lead – lead quality from multiple sources is going to vary greatly – by creating benchmarks for lead qualification, you will be able to measure the relative effectiveness of these different activities.
- Cost per Order – very simply, it tells whether you made any money on your first order. Some promotions lose money on the first order, but can make it up on the “back end.”
- Lead Acquisition Cost – a good summary metric once you define what constitutes a sales lead.
- Customer Acquisition Cost – very effective measurement that calculates both your marketing costs and your follow-up sales costs.
- Lifetime Value per Customer – it’s good information to have, but it’s an essential metric if your “front end” marketing costs are higher than than initial order revenue.
- Conversion Rate – an isolated but useful metric that helps you determine the effectiveness of your landing pages and other web pages in converting visitors into leads.
The Sales Lead System
The Sales Lead System is a series of marketing communications activities that is custom-developed for your sales and marketing operation.
We combine proven strategic and creative tactics in direct mail, email, landing pages and web forms to deliver a closed-loop lead generation and lead nurturing process.
If some of these activities already exist, we can adapt to your program and provide you with just those services you may need.
Start with a FREE Audit
The Sale Lead System is developed for your sales program – and we start with the program you already have in place.
We will map out your current process from initial inquiry to close. We’ll look at what’s working and what needs improving.
And then we’ll off some fresh ideas – to improve your tracking, your measurement, your creative and your results.
To arrange your FREE audit, call Bob McCarthy at 508-473-8643.