Track your leads: the metrics you should know
“That sure was a cool campaign!”
“We got 5,000 clicks at an average CPC of $0.65!”
“Did you see how many likes we got on Facebook?!”
All good signs. But none of them good enough.
Because when it comes to calculating return on investment (ROI), your feelings, cost per click, and social engagement have nothing to do with how well your campaign is going.
This is a place to leave your limbic system at the door and call on the Executive to check your intuitions.
So how do you know if your campaign is working?
Think leads, not clicks
Imagine you’re running a viral quiz campaign on Facebook, and you’ve got a $1,000 to impress your boss. You test out some different audiences and find you’re able to get an average cost per click of $0.20.
Is that good? It doesn’t matter. As Typeform’s SEM Manager Tom Wilkinson puts it:
Take note: your ad clickthrough rate is important. It’s the number of people who click on your ad / the number of people who see your ad. It measures how relevant or enticing your campaign is to the people you’re targeting.
But when it comes to ROI, it doesn’t matter if that $1000 generates 4,000 or 10,000 ad clicks. What matters is the number of clickers that leave their email address—your click-to-lead ratio.
Minimizing cost per lead (CPL) is your goal. And it’s easy to calculate:
CPL = Money spent on campaign / Number of leads generated
So if you spend that $1000 on Facebook ads, and your viral quiz generates 2400 leads:
CPL = $1000 / 2400 = $0.42
And make sure you include the extras. If you run a giveaway campaign with a grand prize of $500 in burritos, just add that into the cost:
CPL = ($1000 + $500) / 2400 = $0.63
Oh, and don’t forget to net the social ripple effects.
Catch your social butterflies
If you create shareable stuff—like a giveaway or viral quiz—your lead gen campaign should get some social shares. And if you’re hitting the right audience with offers they care about, those shares should spawn some additional leads. Make sure you count those too!
So, imagine your burrito giveaway campaign gets shared 218 times, and from those clicks you pull in another 122 leads. The organic uplift on your paid campaign just dropped your cost per lead:
CPL = ($1000 + $500) / (2400 + 122) = $0.59
Nice one. But are all these emails paying off?
Look down the funnel
Remember that the goal of your lead gen campaign isn’t to collect email addresses. Your goal is to connect with potential customers. So keep an eye on how well your leads convert down the line.
There’s a few ways to do this. One is with your lead-to-sale conversion rate:
Total number of new customers / Total number of leads
You want that number to be over 20%. If you’re too much below that, you’re probably not matching your offer to your ideal customer.
Here’s another good hack from Jayson DeMers at AudienceBloom:
But how do you know if you’re really investing in the right places?
Be your own benchmark
The best benchmarks for any of these metrics aren’t found in industry standards. The best place to benchmark starts at your own front door.
How many people who arrive on your landing page leave you their info? How many of those people open your emails? How many of those people go on to become loyal customers?
This is where you start. Now go do what it takes to make next month’s numbers better than the last.