However, all your lead generation efforts will go down the drain if you don’t measure your lead generation metrics.
After all, how will you know if the tactics you are using are bearing fruit if you don’t measure them in the first place? Moreover, you can’t improve something unless you measure it.
It is quite simple actually, once you are able to track and measure something, then you won’t have trouble improving or managing it either. You can even use an automated reporting tool so that you don’t have to manually fetch your lead generation data.
That said, the sheer number of lead generation metrics can be overwhelming something.
That’s why in this article, I will show you some of the most important lead generation metrics that you need to track.
Once you are done with this article, you will know exactly what can be ignored and what lead generation metrics you need to track to optimize your lead generation strategy.
Important Lead Generation Metrics
1. What is Your Traffic Source?
Before we dig deeper and talk about more technical metrics, it important for businesses, especially small and medium-sized businesses to peruse what is their major traffic source.
In fact, this metric is even more imperative then identifying what your actual traffic is.
I know a lot of people give the main importance to how many people are visiting you. In the process, they often overlook the places they are coming from.
But if you need to know how qualified or how useful your leads are, then you need to know the primary sources of the traffic you are getting.
Most often there are three major traffic sources, including:
Direct Visitors. The leads that straight away type your domain name (URL) in the search bar and then visit your site directly.
Search Visitors. The leads that come across your webpage or any of your blogs and then visit your website.
Referral Visitors. These visitors click on the referral links that you added someplace else. It can be though another website, through social media channels, and more.
This also helps you discern which tactic is working out the most for you. For instance, if you are getting maximum leads and at the same time qualified leads through referral channels, then you can double down on your referral lead generation strategy.
Having said that, it is absolutely important that you don’t focus only on one channel. It can prove to be risky sometimes. Because you know never what algorithm Google changes, which may lead to a loss in traffic overnight.
In this video, Nathan talks about how he used to heavily rely on PBNs (Private blog networks) and when Google suddenly changed its algorithms it almost resulted in him incurring a huge loss. However, since he had built other quality links outside of PBNs, it saved them from a huge disaster.
So, measure your traffic sources and make sure that you are using diversified channels to generate leads.
2. Lead Acquisition Cost
You are spending big bucks to generate qualified leads. In addition to this, there’s so much time and efforts that you put into the whole lead generation process.
But is that all worth it?
How would you know that?
You need to evaluate your lead acquisition cost and compare it to the actual worth of that lead. More often than not, companies aim to get at least a 50 percent return on their lead acquisition cost.
Say, for instance, you are spending USD 200 to acquire a lead that is in return earning you only USD 200 in its lifespan, then you are headed in a wrong direction. In this case, you either need to drop the lead strategy you are using and use a cheaper medium to acquire your leads or you need to start looking for different types of leads.
3. CTR (Click-Through Rate)
Marketers put a lot of thought in their CTA strategy.
So not knowing how it is paying off is not a good idea. That’s why I suggest you measure your click-through rate. It tells you exactly how many people are actually clicking on the CTA buttons that you placed on your landing pages, ad campaigns, social media campaigns, emails, and more.
It might sound a little tedious at first. After all, you probably have so many CTAs that you find it extremely hard to find them all at once.
But don’t worry, we have a perfect formula for you.
As you can see, I have divided the metric for conversion rate in two parts: new visitor conversion rate and then the conversion rate for returning visitors.
The reason is that how both these visitors react to your services is very different.
To improve your conversion rate first-time visitors, you need a clear picture. And that’s why I have isolated this metric from the conversion rate for returning visitors.
Identifying the conversion rate for first-time visitors will help you identify what are your leads interested in when they initially visit your website.
You have a couple of seconds to convince them to buy from you. So, measure this metric carefully and see what is working out and what is turning out to be ineffective.
If you make the first impression of your site valuable, you are likely to increase this metric easily.
5. Conversion Rate For Returning Visitors
Now comes another conversion rate metric: return visitor conversion rate.
While tracking down this lead generation metric, you need to get answers to these questions:
What made the person return to your website?
Were you able to convert this lead the first time around?
Now, you have to keep in mind one thing: if you were not able to convert that lead the first time around, you still left a good impression which led them to return again and become your paying customer. Once you identify the lead generation, you will also know what you did in order to get them to return the second time.
Summing it all up
It doesn’t matter the number of your leads you are generating.
While I am not saying that quantity doesn’t matter, but quantity certainly doesn’t matter above the quality and the outcome of your lead generation process.
And if you want to identify exactly how well your lead generation efforts are paying off, then you have to measure the above-mentioned lead generation metrics.
Look for your traffic sources, the quality of your traffic, your conversion rate, and check whether your lead generation efforts and budget are worth it in the end.
Which lead generation metrics do you plan to track to improve your lead generation efforts?
Are you finding it hard to get pumped up and get started with your lead generation strategy and measuring lead generation metrics? Then don’t worry: we have just the right solution for you. Read these 51 Motivational Sales Quotes Before You Start Your Day and generate leads on the fly.
Deepti is a senior content writer with AeroLeads. She spends a lot of time brainstorming ideas and writing marketing and sales content. She also has a knack for writing and reading about politics and prevalent social issues and regularly pens letters to the Editor of The Hindu newspaper. When she is not working, you’ll find her socializing with friends or binge-watching Netflix. (And devouring sushi).