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Lead ROI Analytics
Given that the marketing world is constantly changing, business leaders are always swift to invest in campaigns and strategies that will put them on the map and improve their business operations. But there has to be accountability with regards to where the company resources are being invested. Thanks to advancement in technology and the extensive use of the internet in running businesses, it has become much easier to measure how the marketing campaigns employed are performing. Lead Return on Investment Analytics is a great way to show how a company’s investments are paying off. This post by Guttulus expounds more on lead ROI analytics.
Today, customers and site visitors expect more engagement and real-time interaction when they visit a website, unlike in the past where most websites were static, and companies would heavily rely on paid advertisements. The most common marketing strategies that are currently being employed by most companies include email marketing, content marketing, event marketing and Search Engine Optimization. These marketing approaches are quite easy to monitor since you can generate the leads analytics report at any time.
Measuring the effectiveness of marketing channels
It is much easier to know strategies that give the best return on investment by analyzing effectiveness of the individual channels. Compare how Search Engine Optimization, email marketing, PPC, content marketing and social media use influence your ability to interact and gain new customers. Analyzing the number of leads that come from each of these channels will give you a better idea of where to invest the most.
Cost per Lead and Cost per Acquisition are two of key Lead ROI indicators in marketing. But before you proceed to calculate these, one has first to calculate their marketing expenses including the events, personnel and paid channels used in the marketing. Cost per lead can be calculated by first dividing the monthly cost for running a campaign by the number of clicks to obtain cost per click then dividing the monthly budget for the campaign by the number of leads from those clicks. It is important to know that plain leads do not pay the wages and hence quality of the leads is also an important factor to consider. That is where cost per acquisition comes into play.
Cost per acquisition comes with context and depends on what you are offering. It becomes much easier to justify the returns in the value of your products or services are high. The lesser the value of the products you are selling the more the bulk size you need to sell for your cost per acquisition to make sense.
Average value order and lifetime customer value are other metrics in lead RIO analytics that are worth looking at. Average value order can be obtained by taking the total annual revenue and dividing it by the total number of customers who have made successful purchases. The Lifetime customer value, on the other hand, depends on the products you are dealing in, your industry and repeat purchases.
If you are consistent across all channels, these metrics are a quick way to company the return on investment basing on the leads from each of the individual channels employed. It is important to be aware of the fact that it is not always about the number of leads a channel generates but the quality of the leads. The more the quality of leads from a particular channel the higher the return on investment which, in turn, results in more revenue for the company.
Big data analysis
Marketing, in this day and age, is all about the analysis of big data. The analytics, other than indicating which campaigns are performing the best, help you identify the leads that promise great potential in the future. Predictive lead return on investment analytics can help you identify trends, review historical data and allow you to develop a lead generation strategy that is most effective. When analyzing this market data, it is important to focus on valuable data like sales, lead conversions and events that contribute to the conversion of most leads. This data may not just come from your website. Emails, social media profile and other offline sources are all possible sources of data. Getting all the right data gives better results analysis.
With the knowledge of the mediums that are most effective in lead creation and generating of leads, the next step is getting to know why the different campaigns performed the way they performed. Know what channels were underutilized but offer a good promise of return on investment and those that are generally ineffective and not worth investing in. From there, develop an action plan geared towards improving your customer experience and generating more quality leads.
One of the best ways to generate more quality leads is by segmenting the consumers and approaching each segment in the right way. The analysis of the data when evaluating your return on investment for the various marketing channels can aid customer segmentation while helping you focus on markets that offer a great promise of investment return.