4 essential lead generation metrics you’re missing - and how RedTrack captures them

Most marketers struggle to track the right metrics and this leads to wasted budget, missed opportunities and stagnant growth in their lead generation strategies. Hence, there's a significant gap in lead generation metrics.

While basic metrics provide a surface-level view, most marketers neglect the deeper, more meaningful metrics that drive real results. And this is where RedTrack comes in; unlike analytics tools, RedTrack provides a comprehensive platform for tracking lead generation metrics with no complexities.

In this article, we'll explore the four critical lead generation metrics that drive real results, and how RedTrack captures them to help you finally earn and not lose.

Let's dive in!

1. Cost per lead (CPL)

Cost per lead measures how much it costs a business on average to acquire one lead. A lead is a potential customer, either an individual or a company, who’s taken an action that indicates they’re likely to make a purchase. Typical actions include things like creating an account, requesting information, or adding items to a shopping cart. Generally speaking, a lower CPL is considered better than a higher one.?

To calculate CPL, first choose the timeframe you want to measure. This is typically by month, quarter, or year. Next, calculate your total marketing spend for the period: this includes ad spend and administrative costs (in-house payroll, consultants, fixed costs, and so on) for marketing and outbound lead development.

Furthermore, divide this by the number of leads you acquired in this period. You can clean your data to differentiate qualified leads from unqualified leads if you choose. However you define it, this calculation will tell you the average acquisition cost for a lead.

To sum up, the formula for CPL looks like this:

Total marketing spend / Number of leads = CPL

Focusing on Cost Per Lead helps marketers understand the cost efficiency of their lead generation efforts for several reasons:

• Measures campaign effectiveness: CPL evaluates the success of individual campaigns, allowing marketers to identify top-performing channels and optimize underperforming ones.

• Comparability: CPL provides a standardized metric to compare lead generation costs across different campaigns, channels, and sources.

• Budget allocation: By analyzing CPL, marketers can allocate budget more efficiently, investing in high-performing campaigns and reducing spend on ineffective ones.

• Return on investment: CPL is a key component in calculating ROI. Understanding CPL helps marketers evaluate the revenue generated per lead.

How to track

RedTrack plays a crucial role in helping marketers optimize their Cost Per Lead (CPL) by:

1. Providing detailed cost breakdowns, including granular insights into campaign costs, channel spend, and creative expenses, enabling data-driven decisions.
2. Allowing for real-time tracking of marketing spend versus lead acquisition, offering a clear understanding of campaign effectiveness and ROI.
3. Automating cost attribution to optimize spending, accurately assigning costs to specific leads, campaigns, and channels, eliminating manual tracking errors and improving budget allocation.

2. Click-Through Rate (CTR)

CTR is a ratio showing how often people who see your ad or free product listing end up clicking it. Clickthrough rate can be used to gauge how well your keywords and ads, and free listings, are performing. The CTR formula is denoted by clicks/impressions. For instance, if you had 5 clicks and 100 impressions, then your CTR would be 5%.

A high CTR is a good indication that users find your ads and listings helpful and relevant. It also contributes to your keyword's expected CTR, which is a component of Ad Rank.?

Similarly, you can use CTR to gauge which ads, listings, and keywords are successful for you and which need to be improved. The more your keywords, ads, and listings relate to each other and to your business, the more likely a user is to click on your ad or listing after searching on your keyword phrase.

How to track

To help marketers maximize their lead generation efforts, RedTrack plays a vital role in:

1. Tracking and reporting CTR across different campaigns, including cross-channel analysis, campaign-level CTR metrics device and browser-level insights.
2. Providing insights into the performance of landing pages featuring page load time and bounce rate analysis, click-through rates, conversion rates and user behavior and engagement metrics.
3. Helping in optimizing ad and landing page effectiveness through AI-driven recommendations for improvement, automated A/B testing and experimentation tools.

3. Conversion Rate (CR)

CR stands for conversion rate, which is the percentage of users who complete a desired action on your website after clicking on your search ad. It is calculated by dividing the number of conversions by the number of clicks. For instance, if your ad gets 10 clicks and 2 conversions, your CR is 20%.?

In addition, conversions can be anything that you define as a goal for your website, such as making a purchase, filling out a form, signing up for a newsletter, or downloading a file. CR is a measure of how effective your website is at persuading and satisfying your visitors. A high CR indicates that your website delivers on the promise of your ad and meets the user's needs.

Conversion rate evaluates how well marketing efforts convert interest into tangible outcomes, such as:

• Leads;
• Subscriptions;
• Sales;
• Sign-ups;
• Downloads.

CR also indicates the percentage of users who take desired actions after interacting with an ad, landing page, or campaign.

How to track

RedTrack enables marketers to harness advanced analytics to optimize their strategies by:

1. Tracking user actions from click to conversion, offering a transparent attribution model that connects advertising efforts to tangible outcomes.
2. Providing detailed reports on conversion rates for various actions and delivering actionable insights through customizable dashboards?
3. Analyzing data to identify successful strategies and areas for improvement, leveraging AI-driven analytics and machine learning algorithms.

4. Return on Investment (ROI)

Return on investment is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. It’s a popular metric because of its versatility and simplicity which tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.

To calculate ROI, the net profit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

Key factors influencing ROI include the initial investment amount, ongoing maintenance costs, and the cash flow generated by the investment.

Essentially, ROI can be used as a rudimentary gauge of an investment’s profitability. This could be the ROI on a stock investment, the ROI a company expects on expanding a factory, or the ROI generated in a real estate transaction.

How to track

RedTrack helps marketers to:?

1. Provide ROI calculations based on detailed revenue and cost data, incorporating metrics such as Cost Per Click, Cost Per Action, and Lifetime Value to deliver accurate profitability assessments.
2. Offer insights into the financial effectiveness of different marketing strategies, comparing campaign performance across channels, devices, and geographies to identify lucrative opportunities.
3. Help in optimizing future investments for better returns by identifying profitable audience segments, optimal budget allocations, and high-performing ad creatives, empowering data-driven decision-making for scalable growth.

The right metrics are crucial for efficient lead generation. With a platform like RedTrack, marketers can track, optimize, and grow their campaigns with precision.

Now that you know the essential metrics for effective lead generation, put them into action with RedTrack. Try RedTrack today or schedule a demo to see how easy it is to optimize your campaigns for maximum ROI.