Friday, March 13, 2009

Lead Gen Metrics That Matter

Nice post yesterday on Craig Rosenberg's Funnelholic blog, where he discusses what he feels are the key metrics to look at when judging campaign effectiveness. I don't think they're the exclusive metrics to measure (I don't think Craig feels that way either) but I agree they are important KPI's to monitor:
  • Lead-to-opportunity conversion: For every lead you create, how many turn into sales opportunities?
  • Cost per opportunity: Instead of CPL, calculate the lead-generation costs and divide by sales opportunities created. This should include lead development/ qualification costs and nurturing costs.
  • Total pipeline created: How much sales pipeline has been created by your leads?
He goes on to mention that CPL (Cost Per Lead) has become less relevant as a meaningful metric, because it doesn't tell you if the lead actually resulted in pipeline or revenue. You could have a very low CPL and be creating leads that mean absolutely nothing to your sales team.

As well, he makes a good point re: ROI. In the big picture the executive team wants to know which leads resulted in how much closed/booked revenue. But that does loop in sales performance into the measurement of marketing performance. If the marketing team delivers a BANT-scored, sales-ready, teed up lead, which ultimately is not closed due to sales dropping the ball, is it right to say that the marketing team has failed? Good point to ponder.

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