3 Easy Metrics to Measure your Leads Generation Campaigns

Do you want to improve your quality leads? Then, is important to track your lead generation data.

The question is when you have hundreds of metrics to choose from, how can you decide which ones are the most effective to measure?

Planning and developing concrete metrics to track your Lead Generation Campaign and investment would be important to have a clear vision of what is working and what parts of the sales funnel you can improve.

In fact, if you can choose just three metrics would be "Website traffic Lead Ratio", "Ratio of Leads to Sales Qualified Leads" and "MQL to SQL Conversion Rate".

Tracking those consistently will help you to identify and resolve weaknesses more effectively.

Let’s take a closer look at each metric!


1. Website Traffic Lead Ratio

By using Google Analytics you can easily see the traffic that comes to your website by social referencing, organic search traffic and emails that you’ve sent. From there you can track how many users have turned into leads and what type of leads are they.

In my opinion, if we are measuring an Inbound Marketing Campaign I would only use the organic traffic and apply the same formula.

Give Me an Example...

For example, if we collected 40 Leads and we had 2,000 visits to our website in one month the conversion rate would be 2%. 

40 (Number of Leads Collected) / 2,000 (Total Traffic to Site) * 100 = 2%

What indicator should I use?

Your website traffic to Lead Ratio will vary depending on the industry that you are, but if it’s below 2-4% it’s an indicator to redefine your content and lead capture strategy.

 

2. Ratio of Leads to Sales Qualified Leads

Remember that not all leads are equal. With this ratio, you can differentiate potential leads from raw leads. A marketing qualified lead is a lead that is more likely to become a customer compared to other leads.

types of Leads:

  • Raw Leads: Are neutral entities a customer who has shared his/her basic information like an email, but it’s at the top of the funnel.

Type of qualified leads:

a) Marketing Qualified Leads (MQL):  A lead that is in the middle of the funnel is a lead judged more likely to become a customer compared to others.

b) Sales Qualified Leads (SQL): When a lead is at the bottom of the funnel is when you or your sales team has accepted as ready for a direct sale follow up.

Give Me an Example…

For example, if you generated 120 qualified leads (MQL and SQL) from a total of 500 leads in one month your Leads to Sales Qualified Leads would be 24%.

120 (Number of qualified leads) / 500 (Total number of leads) * 100 = 24%

What indicator should I use?

According to the Marketing Sherpa study the conversion rates of traffic can be different depending on the industry. For example, a good rate for a nonprofit organization would be 2%, for a Retail or eCommerce 3%, Travel and Hospitality 4%, Education 8%, Healthcare 8%, Media or Publishing 10% and Professional or Finance Services 10%.

 

3. MQL to SQL Conversion Rate

The sales metric MQL to SQL conversion rate is the percentage of marketing qualified leads that get converted to sales qualified leads. This an excellent metric to determine the lead quality and one of the best indicators of how well you or your marketing team is qualified leads to maintain a high-quality pipeline.

Probably the path from MQL to SQL is the most important in your funnel. Your conversion rate here speaks directly to the overall effectiveness of your marketing and lead generation strategies.

How can I determine my MQL or SQL?

Every organization is different and the marketing materials that you expose prospects to during the nurturing process play a key role in their development into a SQL.

Give Me an Example…

For example, if you generated 25 Sales Qualified Leads (SQL) and 125 Marketing Qualified Leads (MQL) your conversion rate is: 20%

25 (SQL) / 125 (MQL) * 100 = 20%

What indicator should I use?

According to Hubspot on average, only 25% of leads are legitimate and have any sort of becoming a SQL.

What metrics are you using to measure your Leads Generation Campaigns?