What’s Your Lead Worth?
Qualified sales leads are the lifeline of any company, big or small. It is therefore critical to know how much a lead is worth to your business, so that you can ensure you invest the right amount of time and money into turning that lead into a sale.
The ultimate goal is to maximize revenue and profit by attracting new customers. If you don’t know the value of your leads, you cannot be sure whether you’re inputting too little or too much into one particular target. In fact, if your business lead generation cost is too high relative to your lead value then there is no point setting up a company in Singapore. Overhead costs are high in Singapore, so your marketing plan needs to be solid before you even begin promoting your business.
So how do you measure lead worth?
Track Your Business Lead Generation
Successful merchant John Wanamaker famously said “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
It is vital that for any website you own, you understand the movement and activity that is taking place. Google Analytics is set up to measure the traffic that’s coming in to your website so that you can understand which advertising campaigns and selling techniques are the most successful. If Analytics is showing the majority of your traffic as ‘direct’, you can get around this by creating unique landing pages for each advertisement in order to monitor exactly what’s working, and what’s not.
When it comes to phone calls, it’s worth giving different ads unique numbers to call to track the source of the sale. Adwords extensions and call tracking options in Google vary slightly by country. But where available you can set it up to measure your calls with ease.
While your customers are on the phone, it’s always a good idea to ask them exactly what influenced them into calling in the first place. This data in invaluable when it comes to measuring business lead generation worth and marketing strategies.
Categorize Your Inbound Leads
To determine whether your incoming leads are of value to your company. Think of yourself as a lead generation company and use a system whereby each lead is placed into a ‘high’, ‘medium’ or ‘low’ category.
Leads that are deserving of the ‘high’ category could be CEO’s or key influencers who fit into your target demographic. When you add a lead into this category, it is vital you invest a good amount of time and resource into nurturing it.
‘Medium’ leads could be consultants working within your target demographic, or someone who has direct contact with the CEO of their business. These are still valuable, and certainly worth investigating further.
Finally, a ‘low’ lead might be employees with very little influence, part-time employees or a company unrelated to your target demographic. People or companies that you’ve placed into the ‘low’ category are not going to add any value to your business and will soak up critical time and money if pursued.
To summarize, this method will assist you in deciding which leads need to be focused on and which ones are best left alone.
Set Up Lead Scoring
Lead scoring is an efficient way of measuring business lead generation value, but surprisingly only 21% of B2B marketers have a lead scoring program. This system eliminates the guesswork and gives you hard data to work from. The primary purpose of lead scoring is to rank prospects against a customized scale that portrays the predicted value each lead could bring to your organization. It is initially very important to identify the demographic criteria that is important to your sales conversions in order to set up the scale. This could mean working out the company size, industry and reputation on social media of your ideal leads. Then, you’ll need to assign a points value to these criteria, which will determine the value of each lead as it’s recorded. This system is especially effective for medium to large businesses with a wide berth of customer contact.
Measure Returning Customers
Repeat business accounts for a large portion of your sales. In fact, 40% of an ecommerce store’s revenue is produced by only 8% of its customers, and loyal customers spend three times as much per order than first time customers. But why are these customers returning? This is an important question. Customer feedback programs, end-of-call surveys and proper web monitoring can help you to understand what your most valuable customers like about your business. When you know this, you can invest more into it.
Knowing the exact value of your leads can dramatically improve the success of your business. It’s essential you start out by knowing which lead demographics are worthwhile and which ones aren’t. If you then put into place effective but straight-forward monitoring systems, web and phone analytics and increase customer awareness, you’ll be more likely to grow your conversion rates and ultimately your overall revenue.