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Lead Generation Best Practices: Measure Beyond Cost-Per-Lead
| Guest post by: Dan McDade |
Article Overview:
- Focus measurement on opportunity quality, conversion ability and revenue generated.
- Use cost-per-opportunity and cost-per-deal as measurement indexes.
- Measure the percentage of MQLs that become SALs and SALs that become SQLs.
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Free Download - Marketing Tip: If You Only Do One Thing, Qualify Your Leads By Dan McDade |
Lead Generation Best Practices: Measure Beyond Cost-Per-Lead
Conventional wisdom—that something called a "lead" can and should be had at consistently lower price points where it will still deliver value—is at the root of a host of sales and marketing problems and deserves a closer look.
The value of a lower cost-per-lead approach may have merit early in the funnel where inbound marketing and marketing automation can be helpful in moving large numbers of sales prospects to raise their hands and express interest. Problems arise when marketing points to delivery of hundreds and thousands of names delivered at a low cost-per-lead while reps shake their heads wondering why the unqualified names they receive are even called "leads."
Striving for lower cost leads while defining a lead as a sales-ready buyer is a recipe for disaster. Cost-per-opportunity and cost-per-deal are better indexes when measuring prospect development initiatives. This is particularly true where there is a complex buying landscape, a long sales cycle and a high-investment solution. ROI measurement and performance metrics here should be grounded—not in volume—but in opportunity quality, conversion ability and revenue generated on investment.
The cost-per-lead is going to be driven by how a lead is defined, the nature of the solution and selling process and the type of metrics used to measure marketing performance. The reality is that leads cost what they cost—particularly when developing high-value, qualified sales opportunities in complex sales.
Another important measurement of program performance can be found in tracking and reporting on lead categories set forth in SiriusDecisions' Demand Metrics Waterfall. Success criteria can be clearly established by measuring the percentage of Marketing Qualified Leads (MQLs) that become Sales Accepted Leads (SALs) as well as measuring the percentage of Marketing Qualified Leads (MQLs) that become Sales Qualified Leads (SQLs). Perfection, of course, is that 100% of MQLs become SALs and 100% of SALs become SQLs. But sales and marketing demonstrate great progress toward full alignment the closer both percentages get to 100%.
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Article Tags: Cost Per Lead, Developing Prospects, Lead Generation, Sales Lead Generation, SalesReady Buyers
Referred by: http://www.findnewcustomers.com
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About the Author: Dan McDade RSS for Dan's articles - Visit Dan's website Dan McDade founded PointClear in 1997 with the mission to be the first and best company providing prospect development services to business-to-business companies with complex sales processes. He has been instrumental in developing the innovative strategies that drive revenue for PointClear clients nationwide. In addition to serving as president and CEO of PointClear, Dan is the author of The Truth About Leads, an insightful book that sheds light on the little-known secrets that help focus B2B lead-generation efforts, align sales and marketing organizations and drive revenue. Prior to starting PointClear, Dan served as president of UST, The Business Marketing Group, a high-tech B2B marketing services firm. The company, serving leading technology companies including Sun Microsystems, Texas Instruments, Oracle and SAP, grew over 500% during his tenure. From 1989 to 1991, Dan was an independent consultant providing direct marketing, telemarketing and new business development consulting services. Clients included Sears, Exxon, Rodale Press, R.J. Reynolds, and The Ritz-Carlton. Dan also served as vice president of marketing with Jackson & Perkins in Medford, Ore. Dan is chairman of the board of the Technology Association of Georgia (TAG) Education Collaborative, an organization promoting STEM (science, technology, engineering and math) education in Georgia's middle and high schools. He is a member of TAG, and also serves on the boards of TechAmerica Southeast (formerly AEA); the Business & Technology Alliance, a TAG society; and TAG Marketing. The Sales Lead Management Association named Dan one of the 50 most influential people in sales lead management in 2009 and 2010. Dan is also the author of ViewPoint | The Truth About Lead Generation, a blog exploring issues related to B2B sales, marketing and lead generation. Click here to visit Dan's website   Lead Generation Best Practices When to Use Outbound vs Inbound Judicial Branch Needed to Keep Sales Lead Management Honest Lead Generation Best Practices Agree on Lead Definition Lead Generation Best Practices Segment Test Your Market Lead Generation Best Practices Multiply TouchesMediaCycles |
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