Need More Leads? Think Again. Boost Your Sales with These Key Metrics

The goal? Leads. But lead generation is more than just capturing form fills and scoring leads. It’s about quality, relevance, and ensuring that each lead you pass to the sales team is a step closer to a successful deal. 

When marketing and sales are not aligned, it can feel like you’re working in different worlds despite having the same end goal. This is where the power of analytics steps in to bridge this divide. Lead generation analytics will help you focus on lead quality and bring clarity and alignment to your shared objectives with the sales team. The following sections will explore how to harness these analytics to fine-tune your lead-generation strategies. You’ll learn about critical metrics that can transform your approach, ensuring that the leads you generate are numerous, the right fit for your business, and ripe for conversion by sales.

Strategies to Drive Revenue Growth: It’s Not Just About More Leads

When we start working with new clients, they often tell us they want one thing: more leads. It makes sense at first. More leads should mean more chances to make sales. But these businesses need more than just more leads; they need more sales. Getting more leads only sometimes means you’ll get more sales, especially if those leads differ from the right fit for your business.

Imagine this: a company promises to bring you many leads. You get excited because you think all these leads will increase sales. But then, something disappointing happens. None of the leads turned into sales because they weren’t suitable leads for your business. 

So, if getting more leads isn’t the answer, what is? Well, there are four key strategies we can use to help your business make more sales, and they’re all about making sure the leads you are generating are high quality and then maximizing those leads. 

Getting more leads only sometimes means you’ll get more sales, especially if those leads differ from the right fit for your business.

Enhancing Lead Quality

Rather than aiming for a deluge of leads, prioritize the quality of each lead. Think of a scenario where a smaller, more engaged audience is more valuable than a large, disinterested one. By measuring engagement levels and interest indicators, you can refine your approach to attract leads that are more likely to convert.

Boosting Conversion Rates

Increasing the rate at which leads become customers is a direct path to boosting revenue. This requires improving lead quality and using data to fine-tune your sales and marketing strategies. Measure conversion rates to identify what works best in turning prospects into buyers.

Reducing Time to Close

Accelerating the sales cycle enhances revenue and provides quicker feedback for strategy optimization. Tracking the duration from lead acquisition to sale is essential. This metric helps identify bottlenecks and streamline the sales process.

Increasing Average Sale Size

Growing the value of each sale can significantly impact your bottom line. By analyzing purchase patterns and customer behavior, you can identify opportunities for upselling or bundling products to increase the average sale value.

It’s important to remember the adage: “You can’t improve what you don’t measure.” Effective measurement and analytics are the linchpins that connect improvements in these areas to tangible results. As we dive into the next section, we’ll explore various metrics, how to effectively measure them, and actionable steps you can take to improve these metrics. Understanding and applying these measurements will enable you to track progress in these four areas and continuously refine and enhance your strategies for better sales outcomes.

Lead Generation Metrics That Really Matter

After focusing on the importance of high-quality leads, let’s shift gears to how to use data to boost your sales. We will explore seven key metrics you can use to drive revenue with intelligent, data-backed decisions.

Engagement Metrics

Engagement metrics are crucial for you as a B2B marketer because they show how interested your leads are in what you’re sharing. These metrics include how many people open your emails, click on links, engage on a landing or squeeze page, and interact with your social media posts. They help you understand which content captures your audience’s attention and encourages them to engage.

How to Measure

To get a clear picture of engagement, track different metrics to determine how people interact with your marketing tactics. These metrics provide a direct insight into how compelling and relevant your content is to your leads. Here are a few different engagement metrics based on the platform or channel:

  • Email: Open Rate, Click-through-rate, Click-to-open-rate
  • Social Media: Likes, shares, comments, and overall engagement
  • Blog: Scroll depth, link clicks
  • Landing/Squeeze Page: Scroll depth, link clicks, form submissions

Use Case

By monitoring engagement metrics for their email program, an equipment manufacturing company noticed that emails featuring customer success stories had higher open and click-through rates than general product updates. Similarly, their how-to guides on social media generated more shares and comments. These insights indicated which types of content resonated most with their audience, allowing them to focus their limited content production resources on these types of content. They took this a step further when they performed a lead source analysis and tied revenue data back to the different channels and pieces of content.

Actionable Steps

  • Track Key Engagement Metrics: Regularly review your email campaign data and social media analytics to understand which types of content are getting the most engagement.
  • Analyze Content Performance: Identify which topics, formats, or styles are most engaging to your audience. Look for patterns in what drives higher open rates, click-throughs, or social interactions.
  • Tailor Your Content Strategy: Use these insights to refine your content approach. Focus on producing more content that generates high engagement and experiment with similar topics or formats.
  • Engage in A/B Testing: Experiment with different subject lines, content formats, or posting times to see what maximizes engagement.

Lead Source Analysis

Lead Source Analysis is crucial for you as a marketer because it helps you understand which marketing channels are most effective at bringing in high-quality leads. Knowing where your best leads come from, you can focus your efforts and resources more efficiently.

How to Measure

To conduct Lead Source Analysis, track where your leads come from. This could be social media platforms, email campaigns, your website, or other channels. Use tools like CRM software to keep track of these sources for each lead.

Use Case

A Tech Company tracking the lead source for each MQL analyzed the results and found that their highest quality leads came from LinkedIn and industry webinars, allowing them to allocate more resources to these two channels and increase the number of MQLs generated. 

Actionable Steps

  • Track Lead Sources: Implement a system to track and record the source of each lead. This could be done using CRM software or even a simple spreadsheet.
  • Evaluate Channel Effectiveness: Regularly analyze which channels bring in the most leads and, more importantly, which bring in the highest quality leads.
  • Focus on High-Performing Channels: Allocate more of your marketing budget and efforts to the channels that have proven most effective for your target audience.
  • Align with Sales Team: Share your findings with the sales team and align your strategies. Understanding which channels bring in the best leads can also help sales teams focus their efforts more effectively.

Lead Quality and Quantity

As a marketer, you know it’s not just about how many leads you get (quantity) but how good those leads are (quality). Lead Quality and Quantity is a metric that helps you balance the number of leads you generate with how well they fit your ideal customer profile.

How to Measure

To measure this, look at your lead data and check how many of these leads match your ideal customer profile. This could include factors like industry, company size, or specific needs that align with your product or service. Keep track of these numbers over time to see how they change. Another option is to implement a feedback loop with your sales team, allowing them to provide real-time feedback for each lead.

Use Case

A software company that targets mid-size businesses analyzes their leads and finds that, while getting many inquiries, only a small percentage are from mid-sized businesses; the rest are from companies too big or too small for their product. This insight helps them adjust their marketing focus to attract more ideal customers, increasing lead quality and conversion rates.

Actionable Steps

  • Define Your Ideal Customer Profile: List the characteristics that make up your ideal customer – their industry, company size, budget, or specific problems they need solving.
  • Review Your Current Leads: Look at your recent leads and see how many match this profile. This will give you a good idea of your current lead quality.
  • Adjust Your Marketing Strategy: Based on your findings, refine your marketing efforts to target more of these ideal customers. This could mean changing your ad targeting, content strategy, or sales approach.
  • Track and Analyze Regularly: Make it a habit to review the quality and quantity of your leads regularly. This will help you stay on track and make continuous improvements. Consider implementing an automated feedback loop to capture real-time feedback from the sales team. 

MQL to SQL 

As a marketer, one of your goals is not just to generate leads but to generate leads ready for a sale. The MQL (Marketing Qualified Lead) to SQL (Sales Qualified Lead) conversion rate measures this. It measures the effectiveness of how well the leads you generate are qualified and prepared for the sales process.

How to Measure

To calculate this rate, you need to track how many of the MQLs – leads you’ve identified as potential customers – are accepted by the sales team as SQLs, which are leads deemed ready for direct sales follow-up. Divide the number of MQLs that turn into SQLs by the total number of MQLs, then multiply by 100 to get a percentage.

MQL to SQL Conversion Rate Formula

Use Case

A video production company produced 100 leads (MQL) for the sales team, and 60 were accepted (SQL). This gave them an MQL to SQL conversion rate of 60%. Using feedback from their sales team, they changed their lead scoring program and increased the MQL to SQL conversion rate. 

Action Steps

  • Define MQL and SQL Criteria Clearly: Work closely with your sales team to define what makes a lead an MQL and an SQL. Clear criteria help in creating better-targeted marketing strategies.
  • Regular Review of MQL to SQL Transitions: Monitor how many MQLs become SQLs regularly. This will help you identify any gaps in your lead qualification process.
  • Improve Lead Qualification Processes: Use feedback from the sales team to refine how you qualify leads. This might involve gathering more detailed information from leads or adjusting your scoring criteria.
  • Foster Open Communication with Sales: Maintain open lines of communication with your sales team. Regular meetings help ensure that the leads you’re passing over align with what the sales team seeks.

Conversion Rate

Conversion rate is a crucial metric for you as a marketer, as it shows the percentage of your leads that turn into actual paying customers. It indicates how effective your marketing and sales strategies are in closing deals.

How to Measure

To calculate the conversion rate, take the number of customers you’ve acquired over a certain period and divide it by the total number of leads you had during that same period. Then, multiply the result by 100 to get a percentage. This figure will tell you how many of your leads are converting.

Conversion Rate Formula

Use Case

A heavy equipment manufacturer generated 500 leads in the last quarter, and 50 of them ended up contracting their services. So, the conversion rate would be (50 ÷ 500) × 100 = 10%. This number helped them understand how effective their current strategies were in converting leads to customers. Using conversion data, they analyzed different landing pages and emails to help them determine which marketing assets did the best job converting leads into prospects and improve on the ones falling short.

Actionable Steps

  • Track Your Leads and Sales: Keep a close record of the number of leads you generate and how many convert into sales. This data is crucial for calculating your conversion rate.
  • Analyze Your Conversion Rate: Regularly calculate your conversion rate to gauge the effectiveness of your marketing strategies.
  • Refine Your Targeting: If your conversion rate is lower than you’d like, look at how to target your campaigns better. This might mean focusing on a specific industry, company size, or decision-makers within a company.
  • Understand the Buyer’s Journey: Document and review the buyer’s journey to understand the lead’s state of mind, objections, and who else is involved in the buying process. Use this information to create content that addresses the specific needs, pain points, and objections to increase the conversion rate and decrease the time to close.  

Time to Conversion

Time to Conversion is a crucial metric for you as a B2B marketer. It measures the duration for a lead to transform into a customer. This metric is critical in understanding the efficiency of your lead nurturing and sales processes.

How to Measure

To calculate Time to Conversion, track when a lead is generated (like when they fill out a form on your website) to when they make a purchase. This duration gives you an insight into how quickly your team can convert leads into sales.

Use Case

A cloud-based solution provider noticed that it typically takes about 60 days from when a lead signs up for a free trial to when they purchase a subscription. By tracking this, they identified opportunities to streamline the process and engage leads more effectively to shorten this time frame.

Actionable Steps

  • Monitor Lead Progress: Keep a close eye on how long leads stay in each sales funnel stage.
  • Nurture Leads Efficiently: Implement targeted email campaigns or personalized follow-ups to keep leads engaged and moving through the sales process.
  • Collaborate with Sales: Work closely with your sales team to ensure they have all the information about leads. This can help them close deals faster.
  • Analyze and Optimize: Review the Time to Conversion data regularly to identify bottlenecks or stages where leads linger longer. Use this information to refine your sales and marketing strategies.

Cost per Lead (CPL)

Cost per Lead (CPL) is a crucial metric for you as a marketer. It tells you how much it costs your company to acquire each lead. Understanding CPL is essential for ensuring your marketing budget is spent effectively and efficiently.

How to Measure

To calculate the CPL, you’ll want to take the total cost of a specific marketing campaign and divide it by the number of leads that campaign generated. For example, if your campaign costs $5,000 and you generated 100 leads, your CPL would be $5,000 ÷ 100, which is $50 per lead. But be careful – while this metric tells you the cost per lead, it does not tell you the entire store and should be used with other metrics like conversion rate and average sale.

Cost per Lead (CPL) Formula

Use Case

The Marketing Director at a professional services company was asked to make budget cuts. To determine where to make the cuts, he analyzed two ad campaigns, reviewed the costs for both campaigns, and calculated ad spend, creative design, and manpower. Campaign A spent $10,000 and generated 200 leads, resulting in a $50 CPL. Campaign B spent $10,000 and generated 100 leads, resulting in a $100 CPL. With all else being equal (like conversion rate and average sales), he cut Campaign B. This allowed him to make the necessary budget cuts while limiting the impact on sales.

Actionable Steps

  • Calculate Your Campaign Costs: Add up all expenses related to your marketing campaign, including ads, tools, and personnel.
  • Monitor Lead Generation: Keep track of how many leads each campaign generates.
  • Evaluate and Adjust Campaigns: Use the CPL to determine which campaigns are cost-effective and which are not. If a campaign has a high CPL, consider strategies to make it more efficient, like refining your target audience or tweaking ad designs.
  • Continuous Optimization: Regularly review your CPL for various campaigns. Look for trends and patterns to understand what works best and adjust your strategies accordingly.

Seeing the Full Picture: How Combined Metrics Drive Success

Each of the metrics outlined above is like a piece of a puzzle. On its own, it shows you a tiny part of the image. But you get the complete picture when you put all seven pieces together. That’s how these seven key metrics work. Alone, they give you hints and peeks into how your sales and marketing efforts are doing. But they show you the whole story when you look at them all together.

Remember, no single metric can tell you everything you need to know. Data is super honest. It doesn’t twist facts. But if you’re only looking at one metric, it’s like listening to only one side of a story. Sometimes, what one piece of data tells you may clash with another. That’s okay! By looking at everything together, you really start to understand what’s going on.

So, as we move forward, remember that the real magic happens when you blend all these metrics. This isn’t about picking your favorite or the one that looks the best. It’s about using all of them to get a clear, complete view of how to make your sales soar. This way, you’re not just making guesses but making decisions based on the complete, detailed picture that data gives you. And that’s how you’ll boost your revenue and build a more vital bridge to your sales team. They’ll see you’re not just about leads but about bringing in sales correctly.

Final Thoughts

In B2B marketing, the request for more leads often echoes loudly—however, the desire for more sales lies at the heart of this request. Adopting the eight metrics outlined above will help you and your team improve lead quality, elevate conversion rates, reduce the time it takes to close a deal and increase the size of the average sale. It will also cultivate a stronger, more productive relationship with your sales team. When both marketing and sales work from the same playbook, driven by data and aligned in strategy, the result is a synchronized effort that propels the business forward.

Schedule a Lead Generation Workshop with Brilliant Metrics to learn more about generating suitable leads and nurturing them through a sales process optimized on all fronts. We will focus on the key lead metrics discussed in this blog post, and help you and your team create an actionable plan to set the stage for sustainable growth and success.

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