Global CEOs are increasingly looking at marketing as a growth driver and have become more critical about measuring the effectiveness of all marketing efforts.
Leaders look beyond qualified leads and engagement numbers. These leaders are now seeking quantifiable answers.
Marketing’s ultimate goal remains the same, even though the process is constantly evolving: to generate leads, increase conversion rates and increase sales pipelines cost-effectively and efficiently.
These are foundational marketing metrics, key performance indicators (KPIs), that can be used to measure the effectiveness of marketing projects.
Qualified Lead Rate
Leads are potential clients who have expressed an interest in your products or services.
Qualified leads are businesses that respond to your marketing campaign by phone, email, social media comment, inquiry, or reply.
Make your connections personal with leads via phone calls and face-to-face meetings. Don’t rely on marketing emails or cold calling alone.
Cost Per Lead (CPL)
CPL is a dollar-value method of acquiring leads. It is used by marketers in companies that offer high-value subscription services or products.
CPL can be calculated using the following formula:
Cost per Lead = Total Adspend / Total Attributed Leads
Your target CPL should be based on your business goals, not fixed percentages. The correct target CPL will help you prioritize your marketing efforts and assess your projects.
To help you measure your marketing performance, analyze your website’s traffic using tools such as Google Analytics. Low traffic could indicate a technical problem on your website, a Google algorithm penal, or broken links.
You build brand authority and trustworthiness by attracting more visitors to your website. Organic traffic is also free.
These metrics will help your marketing team focus on suitable projects and fix any problems. Your CEO will focus on the results, not on intermediary processes, but on your CEO.
You need to include these essential marketing metrics in your dashboard to quantify revenue and ROI. You will discuss these with your CEO.
LVR stands for Lead Velocity Rate
LVR calculates the pipeline development of your company and measures qualified leads’ monthly growth percentage.
Calculate LVR here
Lead Velocity Rate = Qualified leads a current month – Qualified leads last month / Qualified leads last month X 100
LVR tracking gives you an instant indicator of growth. You can generate more qualified leads by observing low LVR for the month.
LVR is not revenue, so it becomes difficult to use the LVR metric.
Customer Acquisition Cost (CAC)
CAC is a cost-effective way to determine how much it will cost to convert a lead into customers. Monitoring and calculating CAC is as important, if not more so, than choosing CPL.