It’s easy to get lost in a blur of data and miss the big picture. There is so much data available today. Lead generation teams reporting to senior management tend to share bloated PowerPoint decks of activity data. Within the buckets of data available, positive stories can be cherry picked to show success.
Executive sales and marketing leaders need to push the debris aside and get focused on the core business drivers that lead generation is fully capable of providing. Help your team focus by giving them the big picture of the business. Set expectations that you only want to see three success metrics.
In most cases, the top three Lead Generation Success Metrics to report on are:
- Lead Generation team % of Contribution to Sales Funnel (Opportunities)
- Lead Generation team % of Contribution to Sales Revenue (Wins)
- Quantity of Sales Qualified Leads (SQL’s) delivered to Sales
The ability to capture these metrics requires collaboration between sales and marketing. Reviews of the three metrics should occur monthly with senior sales and marketing executives.
Benefits of Accountability to Lead Generation Teams
Increased accountability to business driving metrics will liberate your lead generation team.
- Performance reports become highly interesting to executive leadership
- Successfully fulfilling these metrics increases investment in Lead Generation
- Escalates the career advancement of lead generation management
Lead Generation Metrics for the Lead Generation Team
A much deeper level of metrics is required for the Lead Generation team to be successful. A series of leading indicators serve as an early warning system to the executive level top success metrics.
Best Practice success metrics for lead generation teams are provided below. This should get you 80-90% where you need to be with modifications to orient the metrics for your business. In addition, discuss which metrics can be tracked today with current technology and reporting capabilities. Invest in getting visibility to the lifeblood of your program.
Download This Excel Spreadsheet – Lead Generation Success Metrics Template
The following are crucial to Lead Generation effectiveness:
Demand Generation Acquisition Metrics – The goal here isn’t to drive the lowest cost of acquisition. The goal is to capture acquisition costs and track success by method of acquisition. A closed-loop tracking discipline will tie Sales Qualified Leads, Opportunities and eventual Wins back to acquisition mode for analysis. For example, a higher cost per inquiry that converts at higher rates to Wins will outperform low cost inquiries that struggle to convert.
Lead Management Conversion Metrics – The conversion rates between stages of the Lead Management Process are tracked to capture trending against b2b averages and historical team performance. These metrics serve as ‘leading indicators’ to the executive metrics above. Underperformance of the beginning stages can be assessed quickly and proactively addressed with coaching and campaign adjustments.
Lead Development Costs – To provide LeadGen ROI reporting, Lead Generation teams need to capture cost per lead information. This should be done for total cost of ownership as well as the variable run rate cost.
Key Takeaways for Sales and Marketing executives
- Focus your Lead Generation teams on the top 3 Success metrics that drive revenue
- Detailed success metrics should focus on ‘leading indicators’ that provides an early warning system
- Download the Success Metrics Spreadsheet to get started with your team