For a startup, lead conversion is one of the most complex processes to grasp. Though the funnel model simplifies things for neophyte marketers, it’s still a bloody game when the need to count the numbers arises. If you want to slowly digest the system, begin with learning the most important lead conversion metrics.
In layman’s terms, lead conversion is the method of converting those who expressed interest in your products and services into paying customers. They could be one of your email contacts who finally made a purchase.
Business owners try their best to wrap their heads around lead conversion with marketing consultants’ help to understand each lead’s worth. This knowledge would soon reveal the approach, channels, and types of customers that bring in great revenue, hence the need for your attention. These vital lead conversion metrics are too important to miss. Learn more about these to master an integral part of online money-making.
Revenue Contribution of Converted Leads
Don’t get overwhelmed by the fancy words. It only asks about the amount you earned from converted leads. This indicator shows the leads that spend the most money, allowing you to determine the better target segment and the best approach to them.
Note: This metric, including the parameters below would give more precise data depending on the quality of A/B tests conducted and the team behind the marketing efforts. Still, knowledge of these metrics would do a significant difference, no matter the ad budget.
Converted Leads by Campaign
This metric is self-explanatory. When launching campaigns, marketers attach labels and tags to track their progress. After a period of advertisement, they will review and see which of these ads performed well and the opportunities they need to work on. Converted leads by campaign is a straightforward tool that tells you which apples are worth your money.
Win Rates by Lead Source
Next on our list of lead conversion metrics is win rates by lead source. Lead sources vary depending on the business. They are simply bridges that led customers to your store where they finalize the sale. Examples of these are:
- Phone inquiry
- Social media
- Affiliate referral
- Google search results
- Store visit
It’s necessary to track each lead source’s win rates to determine the steps needed to improve their numbers. There are times when businesses had to close a source as they are not working anymore despite the chances and efforts to save it.
Win Rates by Lead Owner
If you have a team that does the prospecting tasks and the outreach, you’ll want to know the individuals who contributed the highest sales to give them the credits and rewards they deserve. It’s also a way to understand their processes so they can further add to the improvement of your current system.
Moreover, among our list of lead conversion metrics, this one also determines the poor performers who would need coaching or assistance.
Conversion from New Interactions
It makes sense that happy customers would return and buy again. However, businesses cannot depend its future on the same individuals to thrive.
Conversion from new interactions or visitors will help improve your lead’s first-time experience. It usually begins with a bad score but finding the answers on what works would give you a firm perception for your next marketing campaigns.
The metric helps you study and learn more about your customer’s attention span. From here, you will gain more info about what is it that turn their heads. You’ll also be able to pinpoint the action triggers and whether your landing page gives better conversion than the previous one or not.
Source: Small Business Bon Fire