Modern marketing preaches the ability to measure what’s working on your company’s website, and what’s not. Tracking where leads come from – like LinkedIn, Facebook, or Google AdWords – is easier than ever before with marketing automation tools that empower marketers to run their department by the numbers. But sales teams are also ready to build a data driven culture with previously untracked data at their fingertips through CRM tools like Salesforce.com.
One of the most important sales metrics marketing tracks is lead source. But lead source is not completely self-serving. Your sales team can also gain valuable insight into which lead sources return the most bang for the time spent on the phone. The three metrics below give you an early indication of which leads are most likely to close and the value they bring to the table.
Note that sources are not specified on this image because the dashboard is from a demo account.
Conversion Percentage for Leads to Opportunities
Just like you calculate conversion percentages in your sales funnel, your team can also look at which sources efficiently convert leads to opportunities. Calculating this ratio is simple:
Conversion Percentage = Leads Converted to Opportunity / Total Number of Leads
This powerful conversion rate allows you to prioritize leads sitting in your queue by their sources. Note though that for a holistic perspective, you must track leads that become opportunities through the sales funnel.
Your sales reps can dive deeper into this conversion percentage to identify which sources are simply not converting leads to opportunities. Two factors could be at work here. Either the lead source does not attract the right customers, or you are approaching leads from this source with the wrong message. If the problem is the former, work with marketing to redirect lead generation resources to better channels. The second issue is a sales problem that can be ironed out with a little testing over the phone.
Lead to Close Length
Does a particular lead source always take longer to close? This is probably the case for lower commitment lead sources, like Twitter. Each source brings leads to your company at different stages in the buy cycle.
For example, one end of the spectrum may be leads from a pre-conference attendance list, where the lead will most likely not convert to an opportunity until after the conference, and then you still have your entire sales cycle to close the deal. On the other hand, a lead entering your Salesforce.com database from a branded Google AdWords search term (like “InsightSquared” for us) indicates your sales team can push a little harder on their first call.
Inbound leads that sought out your company will be more interested in hearing about your product, so take advantage of this lead source to close deals faster.
Average Value Per Lead
What is your business model? Closing lots of small deals at a high velocity or a few big catches every month? Calculating the average deal value by source is a good indicator of which lead sources provide you with the best customer fit. Conversely if you have a couple of customers bucketed across many different channels, start devoting your sales and marketing resources towards lead sources where your best potential customers are active.
Sales and Marketing Working Leads Together
Marketing has done their job of bringing in leads and tagging them by lead source. Now it is your team’s turn to use this valuable data to close deals efficiently. Each lead source should be approached with an appropriate sales message tailored to the customer base active in each channel. Aligning sales and marketing resources makes both teams more efficient at bringing in revenue for the company.
Want a more efficient way for marketing and sales to work leads together? InsightSquared makes it simple.