What is the true measure of success? In the lead generation world, it’s really about measuring revenue. The trick, according to Raab Associates, is to create a measurement system that will report on the critical factors that drive revenue.
Measurement remains an important topic in lead generation and will be discussed at the upcoming LeadsCon Las Vegas conference in March 2015. The event agenda offers many opportunities to discuss the space, but here are a couple of key ideas.
Understand the dynamics with the buying process
Yes, leads produced, close rate, revenue per new customer, time to close and cost per close all provide marketers with a good idea of the actual value they are producing and what is contributing to results. However, Raab Associates points out that marketers desire to know the actual dynamics that happen within the buying process. The ability to track what prospects are doing in each stage leads to funnel reporting. This details prospect count, conversion rate, cycle time and cost in each stage. What this gives marketers is very detailed data that can identify both opportunities and problems.
With such funnel reporting, Raab Associates also says a main goal must be to take those statistics and marry them with your marketing treatments. That entails segmenting so you can essentially set them apart to see the performance of the different groups within your prospective customer base. This is why Raab Associates feels custom analysis is critical.
Four steps to position yourselves for better measurement
The firm indicates these four steps will position you for better measurement – and therefore greater revenue:
- Gathering the data. It is important to accurately document the lead source and track it appropriately throughout the entire process. It may be beneficial to utilize other resources, such as data matching software.
- Operational reporting. You must be mindful to monitor program execution and track the immediate results. Such examples are the volume of emails sent, Web page views and the number of forms completed. Your salesforce should go the distance and enter important data, such as lead attributes and deal status, so that marketers continue to be in the know.
- Creating the benchmarks. Take into account previous performance but understand that is not enough. Forecasting is also an important tool because marketers may be able to gauge if they are meeting expectations.
- Building a model. Implement a system that works at a segment level to better determine how changes in a particular program might impact results by changing conversion rates and timing. This gives both marketing and sales an idea of the overall picture and how their actions affect it.
Raab Associates underscores the importance of marketing and sales to work together in measuring – and participating in – the data for the best interest of the company overall.
The main point is that metrics behind performance marketing is…revenue.
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