How do you measure your lead generation?

1 Lead quantity

The most obvious and basic metric to measure your lead generation is the number of leads you generate. This can be tracked by using a CRM system, a spreadsheet, or a simple tally. However, lead quantity alone is not enough to tell you how effective your lead generation is. You also need to consider the quality, cost, and conversion rate of your leads, which we will discuss in the next sections.

2 Lead quality

Lead quality refers to how relevant, interested, and qualified your leads are for your direct sales offer. A high-quality lead is one that matches your ideal customer profile, has a clear need or problem that your product or service can solve, and has the authority and budget to make a purchase decision. To measure lead quality, you can use a scoring system that assigns points to each lead based on various criteria, such as demographics, behavior, engagement, and feedback. The higher the score, the more likely the lead is to become a customer.

3 Lead cost

Lead cost is the amount of money you spend to generate each lead. It can be calculated by dividing your total lead generation expenses by the number of leads you generate. For example, if you spend $1000 on a Facebook ad campaign and generate 100 leads, your lead cost is $10 per lead. Lead cost helps you evaluate the return on investment (ROI) of your lead generation campaigns and optimize your budget allocation. You want to aim for a low lead cost and a high conversion rate, which means you are getting more bang for your buck.

4 Lead conversion rate

Lead conversion rate is the percentage of leads that become customers. It can be calculated by dividing the number of customers by the number of leads. For example, if you generate 100 leads and 20 of them buy from you, your lead conversion rate is 20%. Lead conversion rate indicates how well you are nurturing and closing your leads, as well as how aligned your offer is with your target market's needs and preferences. You want to aim for a high lead conversion rate and a high customer lifetime value, which means you are creating loyal and profitable relationships.

5 Lead sources

Lead sources are the channels or platforms where you generate your leads from. They can include online and offline methods, such as social media, email marketing, referrals, events, cold calling, and more. Tracking your lead sources helps you identify which ones are the most effective and efficient for your direct sales business. You can use tools like Google Analytics, UTM codes, or tracking links to measure the traffic, engagement, and conversions from each lead source. You want to focus on the lead sources that generate the most and the best leads for your business.

6 Lead feedback

Lead feedback is the information and opinions you collect from your leads about your direct sales offer, process, and communication. It can include surveys, polls, reviews, testimonials, ratings, and more. Gathering and analyzing lead feedback helps you understand your leads' pain points, needs, expectations, and satisfaction. It also helps you improve your lead generation strategy, offer, and message based on your leads' feedback. You want to encourage and incentivize your leads to share their feedback with you and use it to enhance your direct sales performance.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?