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.