Key lead gen metrics
When you’re generating leads, you measure your efforts and results based on a set of metrics. These metrics are applicable to both B2B and B2C (business-to-consumer).
Here’s a list of 6 metrics that are fundamental to your lead gen activities:
This is the number of visits to your website from unique URLs, not including your own employees. A higher number of website visits means more people are landing on your site. This traffic is acknowledged by Google (and other search engines) as an indication of your website’s authority. As a result, your website starts ranking higher for keywords you’re targeting. One way of getting more visitors to your website is by promoting it extensively on social media.
Source of visit / Lead source
In Google Analytics, lead source is classified based on the following default channels:
- Direct: lead types your URL into the address bar, or clicks on a bookmark of your site
- Organic: lead finds you from organic search results
- Social: lead arrives on your website from social networks
- Email: lead follows a link to your website from email
- Affiliates: lead comes from an affiliate marketer’s website
- Referral: lead is “referred” i.e. they come to your website from a link they find in another website
- Paid search: lead finds you from PPC (pay-per-click) ads in search results
- Other: lead comes from online advertising apart from search and display, like cost-per-view video ads
- Display: lead finds you from display ads
MQL (Marketing Qualified Lead)
An MQL is one step higher than a lead, in terms of the level of engagement with your business. An MQL typically performs an activity, like downloading your ebook, which is a clear indication of their interest in your business. Sometimes an MQL can also be determined based on their demographic profile. MQLs are ready to be nurtured, but they’re not ready to buy just yet. They’re usually handed over by the marketing team to the sales team.
SQL (Sales Qualified Lead)
When an MQL displays sales-ready behavior, like requesting for a demo or signing up for a free trial, they become a sales qualified lead. These leads are usually handed over by the sales team to an Account Executive (AE). SQLs are close to making a purchasing decision, so the quicker the AE acts, the higher their chances of conversion. A good way to identify an SQL is by applying the BANT framework—do they have the Budget, Authority, Need and Timeframe to buy from you?
CTR (Click-through rate)
CTR is the number of clicks on your CTA button, versus the total visitors to that landing page or ad. If 1000 people visit your landing page/view your ad, and 650 people click on the CTA, your CTR is 65%. A high CTR depends on a number of factors, chief among which are the value proposition on your page/ad, your CTA’s placement, and the relevance of your content vis-à-vis your target audience.
ROI (Return on Investment)
ROI is probably the most important metric in lead generation. The calculation is fairly simple: it’s the profit or loss you make from investing in a lead, compared against your initial investment. Let’s say you spent $15 capturing each lead, and a lead is worth $20 to you. Your profit from a lead ($5) against your initial investment ($15) gives you an ROI of 33%.