In part 1 of this 3 part series on Establishing Lead Generation Goals for Your Business, I introduce a series of lead generation metric questions to ask your sales and marketing team. By answering the questions in part 1, you began to formulate your lead generation goals. In this section, part 2, I discuss the process for Establishing Lead Generation Goals.
Looking back at part 1, where there any answers to the questions that resonate with you or your team? These are the building blocks to your goals. They help you determine what you are trying to accomplish with your business.
Essentially, are you seeking more social media conversions? Perhaps you are interested in increasing brand awareness with your business or product and services. Maybe you are seeking more leads or better-qualified leads that result in higher conversions.
The answers to your questions do not necessarily lead to one specific lead generation goal. It’s possible, and probable that you want to create multiple lead generation campaigns, each with their own set of goals. The questions in part 1 are just to help you understand what is important now, and what you may want to focus on at a later date.
Once your area, or areas, of concentration are established, the next step is developing measurable goals. See the article on “Writing S.M.A.R.T. Marketing Goals” for a detailed explanation on writing time-bound, measurable goals.
Finally, establishing Key Performance Indicators (KPIs) are essential for gauging success in reaching your lead generation goals. KPIs are the litmus test to each established goal and if you are on the right path to achieving success. If you are not meeting KPIs, it’s time to make adjustments to your strategy and/or goal. If you are hitting your KPIs, then your goal may be too easy and you need to make changes to your goal. See the Sidebar below for an example of establishing KPIs.
Once you establish your lead generation goals and campaigns, you are ready to develop the roadmap and plan for reaching your goals. This is the topic of part 3 in Establishing Lead Generation Goals for your Business.
In part 1 of this 3 part Marketing Tips series on lead generation goals, I examine the initial questions to ask your lead generation team as a primer to setting your lead generation key metrics and goals.
Setting Lead Generation Key Metrics
Your first task is to establish benchmarks for both a sales and marketing processes. Depending on your company structure, you’ll want to work with your lead generation team to tackle and answer the following questions.
Your lead generation team may consist of you, your sales staff, and marketing team. It can also include top level key decision makers (or the C-Suite), depending on the structure and size of your company. If you’re a small business, your team may be just you and an employee or your spouse.
Creating two categories, sales and marketing processes, answer the following questions with your team.
- What is the average sales price for your products or services?
- What is your average sales cycle? Is it one week, 6 months, or some other time duration?
- What are your quarterly revenue goals? (you can establish yearly goals, but it’s best to set quarterly goals to measure your progress and make corrections if you miss your target goal for one quarter.)
- What are your current percentage of leads that turn in to a sale?
- How do you define an opportunity and what are the steps it takes to move that opportunity toward a sales. (see sidebar below for an example opportunity)
- How many influencers does it take at a prospects business to influence a sales? (See sidebar for an example)
- How is your sales team divided? Do you have inside sales, outside sales, or a combination of both?
- What are done with leads that do not turn into opportunities? Are they discarded/deleted? Do you remarked to these leads?
- What percentage of leads generated by your marketing department are considered “good” leads?
- Where does the sales team look outside of marketing to find good leads?
- Is your business currently participating in any lead generation programs? If so, what are they?
- Is your company actively engaged in blogging?
- Is your company producing content? If so, what types of content are they generating? Infographics? Webinars? Videos?
- Are you active in social media streams as a company?
- Assuming you are using a Customer Relations Management (CRM) tool what happens to those leads once they are entered into the system?
- What is the cost per lead? This can vary depending on the types of products and marketing channels used.
- Do you have a lead scoring and lead nurturing program?
- Do you currently track marketing metrics? If so, how is this done?
- What is the conversion rate for leads generated from marketing to opportunities? From leads generated from sales people to opportunities. Is there a difference in lead quality?
- What are your sales success rates from leads?
- How does marketing contribute to the sales pipeline?
- What is marketing’s contribution to closed sales revenue?
The answers to these questions are the beginning to developing your lead generation goals. Goals are very different for each organization and are dynamic in nature. That is, they can change as the business climate and company goals change. This is why revisiting your lead generation goals on a quarterly basis with your team is important.
In part 2, I help you formulate goals and develop a path toward a lead generation plan.