There are 4 critical measurements when marketing online.
- Cost per click: What is the cost of getting a click?
- Cost per lead: What is the cost of getting a lead?
- Cost per sale: What is the cost of making a sale?
- ROI: What was your return?
When you know these numbers you can improve your marketing campaigns.
Let us look at some examples and how to improve each one.
Let’s say as a baseline we have:
- Traffic: 100 visitors
- CTR (click through rate): 10%
- Leads conversion rate: 10%
- Sales rate: 10%
- Cost per click: R10
- Average sale value: R1000
So, 100 people visit your website, you get 10 leads (10% lead conversion rate) and make 1 sale (sales rate). What is your ROI:
- Cost per click: R10
- Cost per lead: R100
- Cost per sale: R1000
- Sale value: R1000
- ROI: 0
What is the easiest thing to do to improve results here? Improve your sales rate. Improving your sales rate to 20%, which means 2 in every 10 leads. Here is the impact on this campaign:
- Cost per click: R10
- Cost per lead: R100
- Cost per sale: R500
- Sale value: R2000
- ROI: 3
WOW! One change improved this campaign from a 0 to a ROI of 3.
But why? You see sales is a high impact area. If you improve your sales process you see instant results.
What activities are in your sales process which will improve results?
- Your sales follow up process (it is not 2 steps, it should be more like 30 steps)
- Fast response (pick up the phone and talk to the client)
- Systems to handle leads (follow up, measure and track)
- Sales skills (can they close deals?)
- Professional quotes (how does your quotes look like?)
- Reasons to take action now and not later
Do this and EVERY lead generation campaign you launch will have better results.