Your business’s success depends on your Return on Investment—and it’s finding new customers/sales that determines whether you can put your feet up on a tidy profit.
And sales rely on quality leads—the ones that are worth chasing because they will pay.
This success relies on the SALES TRIAD
· Lead conversion
· Customer retention
· Repeat business
Make or break is in SALES TRACKING
Track your conversions. Always.
To know every lead’s value, you need to know every sale’s origin. Know your target audience and track and record your website traffic information relentlessly because it will help you target the returns—and focus your business’s operation in the process.
Here’s how you do it
1. Monitor how many leads you are getting
2. Track how many you are converting
3. Record the buyer journey—the path they trod to your till
This is invaluable data. It will spread your sales process before you—signposting which marketing paths lead somewhere and the dead-ends that don’t. You’ll find out how to fast track solid returns and maybe turn around those lost connections.
It’s all about conversion rates
Use this simple calculation:
How many potentials needed + what type of leads needed = your financial targets
So, what’s a good conversion rate?
10,000 website visitors with an average conversion rate of 2% = 200 visitors/leads. Convert 2% into sales = 4 new customers
The individual value of each new customer depends firstly on your business model and how it engages with sales.
For a subscription business it often pays to engage with the average life-time worth of a customer.
Understanding is vital
Another simple equation will help you identify the individual worth of each lead, i.e.
total number of leads engaged with measured against those that converted into customers, or:
Lead value = value of sale / number of leads
ROI—how to achieve your sales targets
Record the number of visitors to your website, track the results generated and the number of conversions.
This will show how many visitors are needed to achieve your sales targets—and what they are costing you.
Check that they are not costing you more than they are giving you.
Again, for argument’s sake, work with a 2% visitor/lead conversion rate:
· To generate £15,000: You need 15 customers @ £1000 each
· To generate 15 customers: You need 300 leads
· To get 300 leads: You need 15000 website visitors
Remember: How much are these 15,000 website visitors costing you?
More spend = less revenue.
The deciding equation
The most cost-efficient method to generate these visitors/leads + the activity that generates the most results that convert to sales = the path to a higher conversion rate
This is how you gauge which lead generation activities are worth investing in for maximum Return on Investment.
You’ll know when you’ve got it right when targets are met—exceeded even. Your inbound marketing activities have worked and you can put your feet up on worthwhile ROI.
Why not contact us for a FREE discovery session in which we will set you on the right road to optimal sales enablement, sales pipelines, loyal customers and ROI...