Track Lead Generation With These 5 KPIs

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Track Lead Generation With These 5 KPIs

Sales | Dec 24, 2022

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Monitoring performance when generating leads separates brands beginning to make the most of their sales teams and seasoned pros. When first starting out, it’s easy to think “more is more” when it comes to leads, but wasting time on unqualified leads is the fastest way to tank your ROI. Learn everything you need to know about effective sales lead generation KPI choices here.

What Are Lead Gen KPIs?

KPIs, or key performance indicators, show you signs of growth, stagnation, or decline clearly and quickly. While there can be several ways to define success, KPIs take that nebulous concept and create measurable values to transform results from one-off flukes into repeatable processes that fuel brand growth.

Why Should You Track Lead Gen KPIs?

Lead management KPIs underpin brand growth and business management by creating a direct map of your company’s expansion efforts and as a snapshot of successes.

Types of Lead Gen KPIs

As mentioned, since there are so many elements contributing to business growth, deciding what to measure is as important as measuring aspects of growth in the first place. These are the most popular lead-gen KPIs you can use to see if you’re on the right track with your efforts.

sales funnal, customer acquisition

1. Number of Leads vs Conversion Rate

As previously mentioned, the sheer volume of leads is a decent indicator of brand popularity or of how well certain avenues can be at reaching people with your brand message. However, sometimes more volume doesn’t mean “better.” It takes time and energy to create volumes of leads, and if there isn’t a solid conversion rate from your efforts, the number just becomes a vanity metric (the one you can brag about with no true value). Knowing where leads come from is key to this metric holding value.

Your conversion rate, however, is the number of sales your company gets as a result of your efforts. This metric brings the true value to the number of leads. If you can easily get 1000 leads but only 1 sale from that effort, there’s something in your strategy that’s out of alignment (cost of effort, cost of the product, quality of product, etc.)

2. Organic Traffic vs Paid Traffic

While traffic is never fun on the road, it’s a fantastic indicator for measuring brand awareness and learning what elements of your brand truly resonate with your audience. Understanding how many page views/visitors you have, where they spend the most time, how long your brand has to make an impression, and more can all be determined from lead gen KPIs.

There are many ways to drive traffic, but all methods fall under either paid traffic or organic traffic.

Organic traffic includes controllable options like SEO, email marketing to your existing list, and social media and more unpredictable elements like word of mouth and referrals from satisfied customers. This kind of traffic leads to easy conversions because the leads are already warm.

Paid traffic requires an investment and covers things like paid ad campaigns (which can overlap with social media when placing social media ads), search engine ads (which when combined with SEO can be a very potent pairing), and anything else needing money upfront to get results.

3. Bounce Rate Tracking

Learning what keeps potential customers engaged and interested in your content is key to keeping them coming back for more or keeping them on pages longer to further entice them to buy! The study of which pages get the most and least attention and how long visitors stay to see what you can change or enhance to boost your conversion rate!

If your content is already optimized and intriguing but not getting results on your website, the bounce rate can be caused by lagging page loads, error messages, or confusing customer purchase pathways when navigating your site. An in-depth website audit can help you find and fix those problems fast.

4. Revenue vs. ROI

At a glance, making sales seems like an easy way to measure revenue without any extra effort. Who doesn’t love making sales? However, not keeping track of how much it costs to make that money will directly impact your total revenue.

Keeping an eye on your revenue also can show you the returns from your investments and the value of investing in certain endeavors to market your brand.

customer acquisition, lead magnet

How to Track and Analyze Lead Gen KPIs

Tracking and analyzing lead management KPIs requires a little nuance to get the exact data your brand needs to go to the next level. The best way we’ve found to manage leads is through effective CRM management.

Luckily, the experts at USA Link System can easily get you set up with the right protocols and systems needed to hit the ground running, but you can also learn more details steps below to get you closer to your goals!

Cost Per Lead & Cost Per Sale

Cost Per Lead tells you how much it costs to run a campaign, but Cost Per Sale tells you how much it takes to convert those campaign results into actual sales. It can be easy to stop at cost per lead and then wonder why your marketing spending isn’t adding up to more revenue. Spending money to make money is certainly part of the process.

These two metrics work closely together because your Cost Per Sale formula is directly influenced by your Cost Per Lead.

Cost Per Sale = Cost Per Lead / Revenue from Sales

Cost Per Lead = Total Spent on Marketing / Number of New Leads

Instead of immediately jumping to other cost-cutting measures to boost revenue, your solution can be as easy as finding marketing options that are as cost-effective as they are impactful on audiences. These ideas are a ULS specialty!

Need More Help With Leads?

Managing KPIs can get unruly for a growing business, especially if you’re a solopreneur or need to focus on product innovation or providing stellar services. Luckily, USA Link System understands the struggle and is happy to help! Schedule your free consultation with our team to get the details you need right away! Contact us here.

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