Lead Generation

What is lead generation?lead generation pay per lead

Many businesses use marketing tactics to drive potential new clients (or customers) to their business known as lead generation tactics. It is also extremely important to convert those leads into clients successfully with an effective sales conversion process.

The sales and marketing functions go hand in hand and one must fully support the other to perform optimally. If you have a successful lead generation marketing campaign but only convert a fraction of those enquiries into sales, this will reflect in a lower ROI (return on investment).

At Ballard Communications we can assist you with implementing lead generation strategies, a sales conversion process / CRM function to make sure that you have processes that are effective. To request a consultation with a member of our marketing team complete the form below.

If much of your business is generated through ‘word of mouth’ then that is excellent. However, never assume you can be complacent and rely on this ‘effortless approach to marketing’. In the digital age no business can.

If you have a website you are able to promote your brand online, generate leads, drive online sales and provide information to existing and potential clients.

Marketing planning and strategy

When you are investing in lead generation, do you calculate the marketing ROI (return on investment)? Do you know what the CPL (cost per lead) is? If the answer is no, then you cannot possible know if your marketing efforts are working for your business. You could be throwing good money down the toilet on a magazine ad that gets you 5 enquiries, but online for the same marketing investment you might get 50 enquiries.

Lead generation – measuring performance

Cost Per Lead (CPL)
When you generate a lead you need to know how much it has cost you to generate that lead. Measure this by dividing your campaign spend by the number of leads into the business:

$500 mkg spend / 5 leads = $100 is your cost per lead (CPL)

Then you need to look at how many of those leads are actually converting by calculating your conversion rate and you can do so by taking your number of new customers and dividing them by the number of leads you have received:

8 leads converted / 18 leads received = 44.44% is your sales conversion rate

Measuring campaign ROIs
You then need to look at the return on investment. To calculate this all you need to do is divide sales by your spend:

$8,000 sales / $1,000 mkg spend = Your marketing return on investment (ROI) is 8

By using CPL and ROI you can measure the performance of lead generation tactics. And one good thing about online is that opportunities are infinite. Quite often you can get your CPL (cost per lead) down just by shifting spend away from traditional methods. Moving spend towards website optimisation (or SEO) may prove to be a better investment.

To request a consultation   complete the form below.

Lead generation tracking

Even online you need to review web traffic so you can track each enquiry back to the source. For example if you get 3 enquiries through a social media link on your facebook page and 1 enquiry through a website link on a local directory i.e. hotfrog, how do you know where a particular lead has come from? Where you should be channelling your efforts? You can monitor all online leads and online traffic by using Google Analytics.

Another reason to track web traffic is to see if your website is performing. If you get heaps of traffic to your website but you don’t get any leads, then something is seriously wrong. Maybe the website isn’t saying the right things or people don’t trust it and are not impressed by it. Or perhaps your call to action (CTA) isn’t clear or prominent enough. A website needs to be developed for the purpose of lead generation as well as showcasing your brand.