A high lead gen score indicates that your marketing efforts are on point. But how do you get there?
As per Hubspot’s report, 6 out of 10 marketers struggle with lead generation— a huge challenge besetting the tech industry.
But marketing leaders can overcome this pain point by focusing on what gives the best results.
Meeting business goals requires leaders to anticipate a specific number of leads in the sales pipeline. The numbers must be practical, and the expected results should align with your company’s growth strategy. When you are setting the goal, specificity plays an important role. That’s why factoring in lead gen calculations is imperative.
But before we dive into the calculations, let’s understand two important terms associated with leads.
Lead quality: Focuses on scoring leads based on their likelihood to convert into paying accounts. After all, it’s not just the numbers that matter. It’s also lead quality.
Lead feedback: This gives you an idea of what the prospects think of your brand and their experience with you. Surveys or feedback forms can provide such information. These details would help improve user experience, making your campaigns more targeted.
Make a difference with a Lead Gen Goal Calculator
A lead goal calculator simplifies narrowing down the precise lead target that should come from your inbound marketing strategy.
It allows the calculation of details like:
- The sales pipeline
- Lead conversion rates
- ROI for your lead gen campaign
There are some steps to use a lead generation calculator successfully-
Step 1: It begins with identifying the revenue target for every month. You can use spreadsheets for this step to maintain consistency and place all information in the same place. However, remember not to miss updating the spreadsheet if the revenue goals are adjusted.
Step 2: Once you have a revenue number, you need to determine the number of deals you must close to hit the target. For this, brands can use marketing software to determine the average revenue generated by each customer per region. The next step is to sum up the average sale value on top of the row above each region. The lead generation goal calculator will automatically provide the value of your leads based on the percentage close rates you input in the spreadsheet in step 1.
Step 3: Here you need to define the revenue split. This means determining the portion of revenue that comes from sales and the portion that comes from marketing. The number would depend on how your business attracts customers –via inbound or outbound strategies.
Step 4: This step involves evaluating your sales closing rates, i.e., the percentage of leads that turn into paying customers. Extract the data of the past six months from all marketing channels that you use to generate leads. Assess the information to have an accurate sales closing rate.
Step 5: The last step is to verify all the numbers entered in the previous steps. As you add data, the calculator automatically updates the total revenue for each customer and region. It adds all the numbers to give you an accurate monthly goal. This number generated by the calculator should match the potential revenue generated by each region per month.
This is the basic functioning of a lead generation calculator. Brands can make it more relevant by customization to match your specific requirements. For instance, you can break down revenues to reveal revenue generated per customer instead of per region to achieve more detailed and accurate numbers.
Best practices for lead gen goal calculation
Calculating lead gen goals improves the performance efficiency of a brand’s marketing efforts, increasing the lead conversion rate. These tips and practices will maximize the effectiveness of the process.
Determine your baseline
A baseline is a good starting point for determining your lead gen goal. You must know the current lead volume and lead-to-customer conversion rate. These details provide a solid foundation from which it is easy to start and get up and running.
Understand your target audience for the T
Fulfilling lead gen goals is next to impossible if you don’t ‘get’ your audience and what they need. Parameters like audience size and niche market influence the targets you set. Brands must also consider the unique attributes of the customers that help them set achievable goals.
Evaluate your resources
The time and financial resources you invest will depend on the number of leads you are targeting. The lead gen goal will be a driving factor for budget allocation. If you have the resources planned, it prevents overspending while achieving the goals.
Understand your sales cycle
The length of a sales cycle largely influences lead-gen goals. And without keeping this in mind, the goals you set could be impractical, throwing off your lead gen efforts. For instance, if the sales cycle is long, it may take time to generate the desired number of leads. That’s why it’s important to fine-tune the goals as per the sales cycle.
Summing up
The sales teams pursue leads to drive more revenue for the brand. But keeping track of the goals could seem impossible. The lead gen goal calculator is a tool that helps businesses of all sizes to identify goals. This can be coupled with budget planning to ensure your resources are not exhausted. The tool is precise in its calculation, allowing you to focus on specific solutions and seamlessly measure sales performance efficiency. However, it doesn’t end with calculating lead generation goals. It’s pivotal to nurture leads to enhance the overall ROI generation.