Do you know what an average lead is worth? If you’re like 39% of marketers, you might not have a clue. You may have been putting off the calculation of lead value at your company, but it’s time to get around to it. But if you haven’t ever considered calculating your lead value, let’s look at a few reasons why measuring the value of your leads is worth your time.
1. You’ll avoid over- or under-spending on marketing
Your lead value should be a factor in determining your marketing budgets. When you know that your lead is worth $20, you wouldn’t spend money on a costly advertising opportunity. It’s just too expensive.
On the other hand, you might find that you are under-spending on your marketing. If your average lead is worth $20, that means you can spend up to $19 per lead and still make money! If you’re only investing on $1-per-click ad campaigns, you actually have a lot more margin to work with.
2. You can invest in optimization
If you understand your lead value, you can easily determine if investing in new software will be worth the cost. For example, you may want to start optimizing your landing pages, online forms, or email marketing. Optimization can boost your conversion rate, which will increase your lead value.
If the cost of optimization is less than the amount of valuable leads it can generate, you can take the plunge. In fact, you may find that optimization increases your average sale value, which in turn increases your lead value. When you are measuring values, you can easily determine if your efforts are successful.
3. You can finally answer that pesky “ROI” question
Remember, lead value calculation is not a perfect science. Leads vary tremendously; after all, they are people with differing needs, budgets, and timing. Understanding the average values is important to marketers. Otherwise, you’ll just be guessing. You can’t calculate your return on investment without knowing all of your costs and values.
Only 33% of marketers even bother to track ROI. When you have clear measurements, you can more accurately determine if your marketing campaigns are working. It also gives you the justification to purchase optimization tools to increase your overall ROI.
Google Analytics is a great tool to track and optimize leads that come in from advertising or landing page campaigns. Are you interested in learning more about how Google Analytics can help you cut through the data sludge? Download our exclusive research report, which has been featured in Huffington Post and Inc.