We all want to see value for our money, and businesses are no exception to this fact. In an industry like digital marketing, where there are sometimes very large discrepancies between agencies that perform and those that don’t, metrics play an important role in measuring success.
A small disclaimer before we continue; metrics are an important piece of the puzzle, but hyper-focusing on results too soon and too intensely can be to your detriment. The performance of digital marketing efforts can be affected by many different factors, so these metrics should be treated as a guide rather than a rule. But without further ado, let’s check out the lead generation metrics that make us tick.
What is Lead Generation?
Lead generation is the process of attracting and converting prospective customers into leads. There are plenty of ways to go about this, like content marketing, email marketing, SEO and social media marketing.
What are Lead Generation Metrics?
Lead generation metrics are measurable values that help inform and explain how well your agency is doing. In many cases, they have a direct relation to your bottom line and return on investment (ROI). But more specifically, they can provide valuable insights into the effectiveness of a given strategy, highlighting not only the quantity but also the quality of leads coming in.
This is where the nuance of lead generation comes in. Because different strategies like pay per click and social ads will aim to get different results from your leads. Some businesses will focus on getting numbers in and letting the sales process whittle down the quality. Whereas others may be happier with a smaller number of leads, but with a higher conversion rate. An ideal world would be to have both, but this often requires a strategy that involves higher costs and isn’t necessarily always going to be the most efficient use of ad spend.
Top 10 Lead Generation Metrics That Are Critical for Your Business
Lead Conversion Rate
This is the percentage of leads that convert into customers. A higher conversion rate means your lead generation efforts and your sales process are effective.
Qualified Leads
These are leads that meet certain criteria, such as budget and need, making them likely to become customers. Tracking the number of qualified leads helps determine the quality of leads your efforts are attracting.
Cost Per Acquisition (CPA)
This is the average amount of money you spend to acquire a new customer. A lower CPA indicates a more cost-efficient lead generation and sales process.
Customer Lifetime Value (CLTV)
This metric estimates the total revenue that a customer will generate for your business over the entire span of their relationship with your company. CLTV helps you understand how much you can afford to spend on acquiring new customers.
Website Traffic
Website traffic measures the number of people visiting your site. An increase in traffic often leads to an increase in leads, assuming your website is optimised for conversion. Prioritising SEO can be a helpful way to boost this metric.
A note on this: lead generation through digital marketing should only be seen as one piece of a larger puzzle. The best lead generation campaigns in the world will fall down if the landing page potential customers end up on doesn’t adequately explain the value of your product or service. This is why a well-thought-out website is crucial if you want to get the most out of your digital marketing.
Landing Page Conversion Rate
This measures the percentage of visitors to a landing page who take the desired action, such as filling out a form or making a purchase. A high landing page conversion rate suggests effective design and messaging (see above).
Marketing Qualified Leads (MQLs)
MQLs are leads who have engaged with your marketing efforts but aren’t yet ready to receive a sales call. MQLs are a good indication of the success of your top-of-funnel marketing efforts.
Cost per MQL
This metric calculates how much you spend to generate a marketing-qualified lead. It helps you understand the cost-effectiveness of your lead generation efforts.
Sales Qualified Leads (SQLs)
SQLs are leads who are ready for direct sales follow-up after being nurtured with marketing efforts. The number of SQLs helps assess the quality of lead nurturing and the alignment between sales and marketing.
MQL to SQL Conversion Rate
This metric measures how well you’re moving leads down the funnel. A higher conversion rate here indicates effective lead nurturing.
Lead Generation Metrics Can Change Depending on Your Business
Every business is unique, and the key metrics for measuring lead generation success can vary depending on your business model. B2B (Business to Business) and B2C (Business to Consumer) businesses, for instance, have different target audiences, sales cycles, and product complexity.
In a B2B setting, the sales cycle is typically longer, and the decision-making process is more complex, often involving multiple stakeholders. Hence, metrics like lead nurturing effectiveness, sales cycle length, and SQLs are particularly crucial.
In contrast, B2C businesses often have shorter sales cycles and direct interactions with individual customers. For these businesses, tracking metrics such as website traffic, landing page conversion rates, and cost per acquisition (CPA) are paramount.
Understanding these differences and choosing the right metrics for your business can be a complex task. This is why partnering with a dedicated b2b lead generation agency like Reform Digital is essential. With industry expertise and a deep understanding of different business models, we can help you choose and track the most pertinent metrics for your business, ensuring your lead generation strategy is both efficient and effective.
How Understanding Metrics Can Shape Future Marketing Strategies
Analysing lead generation metrics is more than just gauging success, it’s about paving the way for future marketing strategies. Whether it’s improving user experience based on conversion rates, or reallocating resources based on CPA or Cost per MQL, these metrics provide invaluable insights to shape your strategy.
Monitoring your progression from MQLs to SQLs and eventual customers can identify bottlenecks in your sales funnel, and it’s our job to help fix those.
Understanding these many numbers can be a challenge, which is where a quality digital marketing agency like Reform Digital shines. Our experts not only track and understand these metrics but we use them to devise strategies that will improve them. In a nutshell, lead generation metrics are a compass guiding your marketing journey, and we’re here to help you navigate.
Get a free site review from the Reform Digital team to see just how many levels up we can take your marketing.
