In any business, several metrics give the management team a quick look at how various departments and operations are doing. Commonly known as KPIs or Key Performance Indicators, these numbers are a report card on financial performance, manufacturing efficiency, sales efforts, and more.
As marketers, we focus on KPIs that measure marketing and advertising efforts and how those efforts generate revenue for our clients. One powerful impact of marketing and sales-related metrics is that they highlight the value of referrals, leads, prospects, proposals, and closed deals.
One of my favorite KPIs is Value Per Lead. This is the amount of new business revenue attributed to leads. We track it monthly, and it rolls up to a year-to-date average. Knowing that number emphasizes the importance of treating each lead like the potential revenue it represents. At R2R I also track value per proposal, and of course, the value per closed deal, but the value per lead is what I keep front and center when responding to inquiries or connecting with referrals.
For us, the value per lead is measured in thousands of dollars. So, I am highly enthusiastic about promptly following up on every lead, no matter how busy I am. Our team knows that leads are golden eggs, and we act quickly.
Your business is different, but knowing the value per lead and focusing attention on that number with your sales and customer service teams can lead to higher conversion rates. That ultimately delivers an even better return on your marketing dollars.
Remember, existing customers pay the bills. New customers make you money. Leads are the gateway to new customers.
