There are basic lead generation metrics that you must to be tracking in order to evaluate the success of your lead gen efforts. You’ll likely have to go beyond the basics to mine truly valuable insights about your efforts.
Here’s a list, that’s by no means comprehensive, of my favorite basic and more advanced metrics.
First, the basics.
How many people are seeing your ad, your content or whatever it is you’re using to attract that audience? This is, to use another term, your reach. Your tracking and evaluation here should be on a per-channel basis, with an eye toward finding the channels that you are able to grow most cost-effectively.
CTR is the number of people who interact with your content. Typically, that means they click the ad or the link in your social media post, etc. (You might also want to track other types of engagement, like subscriptions.) The critical element of this metric is breaking it down to individual ads or content, including individual issues of your newsletter campaign. You want to know what is resonating with your audience and what is driving them to take action.
A conversion can be many different things, depending on the goal you have for your lead generation campaign. (e.g. marketing-qualified leads, sales-qualified leads, etc.) Whatever action you deem to be a conversion, it’s generally a “state change” along the buyer’s journey. That can be a move from a member of the target audience who’s never heard of you to a website visitor to a prospect to a MQL to an SQL and finally to becoming a client. Each of those state changes is a conversion that should be tracked separately.
This calculated metric is a function of conversions divided by impressions. It’s worth tracking on its own, of course, but should also be evaluated with some latitude. That is, as you expand your reach and your impressions rise, you may have a less tightly targeted audience. Of course, you’d like your conversion rate to always rise. But if it falls while the total number of conversions rise, that’s not necessarily a bad trade-off.
With these data points solidly represented in our dashboard, we can move on to additional (and increasingly useful) measurements.
Cost per Lead
What does it take to move a prospect through a stage in the funnel? How does the cost compare with other methods? (Direct mail, trade shows, etc.) How do costs compare across the various digital channels you’re using? These are the metrics that will guide your spend going forward.
Leads per Channel
Another calculated metric worth adding to your dashboard. Here, you compare how many leads a channel is generating against all other channels. It’s an analog to conversion rate in that a channel with more leads generated from a smaller audience (impressions) might be a channel worth exploring more deeply.
Time to Conversion
This metric typically takes some aggregating of data across platforms, as you’ll want to note when each state change occurs. It’s valuable to know how long it takes a typical prospect to proceed through each stage. It’s even more valuable to know this on a per-channel basis. And more valuable still to know average time-per-conversion for those prospects that become clients. You can then tailor your programs to pay more attention to those prospects who appear to be on that “golden path.”
Customer Lifetime Value (CLV)
CLV should be calculated across the board and broken down by channel. A channel with a slightly higher cost per lead but a 10-time increase in CLV is a great channel!
You may find the able list of metrics daunting to consider, especially if you’re not gathering and reviewing any of them now. If so, there’s no reason not to start small. As you become more comfortable with the data, you can expand your dashboard to include a broader range of data points and a broader possibility of action points.