Slick marketing campaigns backed by well-designed content are not just enough to see your brand through in an increasingly competitive market. Marketers must set higher standards and create content and campaigns to deliver results. And this is possible only if they can measure key performance metrics such as audience, traffic, and conversions.
Lead generation is a crucial objective of all campaigns, but you must also find effective ways of converting leads. Future budgets of marketing campaigns depend on returns realized from previous ones. That’s why marketers are focused on improving the ROI of their lead marketing strategies.
Measuring ROI – Some Common Challenges
There is a simple formula to calculate lead generation ROI – Revenue from leads minus the cost of the lead generation program.
However, this calculation may not always give you an accurate number. Many organizations do not have the discipline or the functionality to measure ROI accurately.
These are the common challenges faced by most of them.
Lead attribution determines the marketing activity or campaign that is instrumental in creating the sales opportunity.
Organizations with long sales cycles may face a challenge in tracking lead attribution. The fact remains that generating opportunities through just one specific marketing activity is rare.
Here’s an example. A prospect may be reading your blog posts consistently for months before committing a call to action. What triggered that step? The first blog or a recent one? Or was it the cumulative result of all the blogs consumed to date?
It is vital to establish a methodology to measure lead attribution and follow the process consistently for the best results.
Also, use an efficient CRM tool to track marketing activity and behavior of prospects. Without the right CRM, tracking lead attribution can be very difficult, if not impossible.
Going Beyond Unreliable Evidence
You may generate many leads, but does that translate into success? One campaign may generate 100 leads and convert nothing, while another may produce ten leads and close two. Which one is successful?
The success of marketing strategies depends on tracking forecasted deals diligently and ensuring that revenue is generated.
Using the best CRM and keeping the system updated at all times can save you from relying on false data and ensure an accurate measure of lead generation ROI.
All Revenue in the ROI Equation Must Be Considered
Organizations must enter the total value of the deal into CRM. However, this is not a static value. You may have to adjust the revenue value and make changes to the corresponding ROI figures. Additional revenue must be added on contract renewal. When you consider the recurring revenue from a client on a monthly basis, it will give you a more accurate representation of lead generation economics.
Measuring the economics of your lead generation strategy is vital to understand if you are on the right side of your budget. It will also help you know if you are getting the best value for your investment in lead generation. These metrics are important to make the best of your current marketing budget and shape the future ones more accurately.