Four simple steps to supercharge your lead generation engine
If you’re not getting the number of leads, enquiries or conversions on your website, it can be difficult to find out where the problem is in your funnel.
An explosion of digital channels, platforms, data-points and tools have made understanding marketing performance more complex than ever. A key challenge for Marketing Managers is to identify the key performance indicators that will help them diagnose problems thus, achieving their business goals. While many marketing managers will look at impression share, bounce rates and channel attribution, taking a step back, digital marketing is really about only two things:
- Traffic Acquisition - Getting more of the right people to your website
- Conversion Rate - Once they get there, getting them to convert online and move them down the length of your sales funnel
Increasing the performance of either of these two elements can significantly improve your websites commercial success.
Focusing Your Digital Spend for Growth & Impact
Many clients start from the wrong place in this process. They often ask one or all of the following questions:
- If we are doing PPC – how much should we spend?
- What is a good conversion rate?
- What sort of investment is needed for SEO?
- What activity should we focus on first?
To focus your digital spend where it can have the most impact I recommend you do the following:
- Agree your monthly revenue goal for your website
- Considering all your active channels – online & offline – identify what percentage of revenue is delivered by online marketing activities
- Identify the current average revenue per acquired customer or client
- Calculate your current conversion rate
- Visitor to lead
- Lead to close
- Finally from this information you can calculate how much traffic you need to acquire and begin to answer those initial questions.
Step 1. How many new customers do you need to meet your sales goal?
Let’s say you own or manage a website where you have:
- €50,000 monthly target
- 75% of your revenue is delivered via PPC SEO and paid Social (maybe the other 25% is made from cold calling or referrals) – So that’s a website sales target of €37,500 per month.
- Your average sales value is €1,250.
Then your first calculations should look something like this:
(€50,000 Monthly Revenue Target ÷ €1,250 Average revenue per new client) x 75% of Revenue coming from SEO, PPC and Paid Social) = 30 New Customers needed per month
In other words, based on the numbers above, you need to add 30 new customers to your sales list every month to achieve your revenue targets of €37,500 per month. Having identified your website revenue target and the volume of new customers needed you can begin to look at how that impacts website leads and traffic.
Step 2. How many leads do you need to meet your customer goal?
Next we look at the lead to close (or you may call it lead to customer) rate. There are two key points to consider here:
- What do you define as a lead, &
- How many of these leads turn into closed sales.
Depending on the nature of your business you might classify a lead as one of the following examples:
- Submits a Contact Us Form
- Downloads a whitepaper
- Requests a Demo
- Contact via your Chabot
Ensuring that the tracking is set up correctly is vital. Each month you want to know your website conversion rate.
You can extract or calculate the majority of the previous answers from your Google Analytics account. However, the lead to close rate is often one of the most challenging numbers for marketing managers and business owners to identify. Knowing the lead to close rate is a key metric in enabling you to reach your commercial target and ties the overall funnel together.
Staying with our example of needing 30 leads, let’s say you close 1 in 10 that gives you a 10% close rate.
With the close rate defined, you can easily work out how many leads you need per month to hit your revenue goal as follows:
30 Monthly New Customers ÷ 10% Lead to Customer Rate = 300 The number of leads needed.
In other words, based on the numbers above, you need to capture 300 new leads in order to add 30 new customers to your sales list every month so that you can achieve your revenue targets of €37,500 per month.
Step 3. How much Traffic does your website needs to reach its leads goal?
For lead generation websites uncovering the Website Conversion rate is the percentage of traffic that complete your main call to actions (Book a Demo, Submit a an enquiry form etc.).
Sticking with our worked example:
- The website needs to capture 300 new leads
- Current website visitor to lead conversion rate is 3%.
300 Leads Needed ÷ 3% Conversion Rate = 10,000 the number of monthly visitors needed.
In other words, based on the numbers above, each month you need to drive 10,000 visits so the website can capture 300 new leads in order to add 30 new customers to your sales list every month so that you can achieve your revenue targets of €37,500 per month.
This analysis can be incredibly valuable. It allows you to identify the scale of the task in front of you. Imagine if the site in question is currently only driving 5000 visitors – you would need to double your traffic figures in order to achieve your revenue targets with all other things remaining the same. etc.
This approach allows you to
- Consider how much additional traffic you need
- Prioritise traffic acquisition channel & identify where you should invest
- Benchmark current performance
- Understand how investment in CRO can impact all of marketing efforts.
Step 4. Marketing Tactics
So how many visitors do you currently have per month? Let’s say you have 5,000!
When you consider tactics and spend for Traffic acquisition, the picture is now a lot clearer. Given that you currently have 5,000 visitors a month – perhaps we can get another 2,500 from PPC and an additional 2,500 from SEO activities. The insights about performance should help shape you approach to PPC & SEO here.
Now instead of asking:
“How much should we invest in PPC?”
The question becomes more precise and meaningful:
How much would an additional 2,500 visitors from PPC cost and is it worth it
We can begin to scale and forecast the impact of increasing traffic on our bottom line:
If our current conversion rate is 3% we know that investment in Conversion Rate Optimisation (focused on improving the conversion rate) programs can have a huge knock-on impact, as they bring down the number of monthly visitors needed to hit our goals.
If you choose to invest in CRO only (ignoring PPC and SEO) you can forecast the outcome, building on the 3% conversion rate, and how it impacts your websites revenue:
At the beginning of this blog, I suggested that digital marketing is essentially about increasing relevant traffic acquisition and improving your conversion rate. We can see below that Investing in both traffic acquisition and conversion rate optimisation can lead to extraordinary results:
All the levers of this process that can be pulled in order to achieve and increase sales/conversion:
- Total Visits
- Traffic acquisition across multiple channels
- Website conversion rate
- Getting more visitors into your conversion funnel
- Lead to close rate
- Getting more visitors to the end of your conversion funnel – this could have multiple stages
- Sales Value per sale
- Improving the sales mix through promotional, upsell and cross-sell activities
We hope you fnd this helpful. It's an exercise that can help focus your marketing efforts and provide an initial path to where your website needs to be.
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