One of the most popular KPIs for lead generation sites is “Cost per Lead”. It lets marketers know whether they’re spending the right amount on marketing campaigns. However, a better KPI for such customers is “Cost Per Qualified Lead”. It provides a more accurate picture of the campaign performance.
The following is what a customer has recently shared with us regarding their use of WebToCRM.
Note: the numbers have been revised in this post.
After running a number of online campaigns, they were able to use their web analytics solution to determine high-level performance metrics such as campaign clickthroughs, conversion rates and cost per lead. The sample data is shown in the first graph below.
The campaign conversion rates are mostly within the same range. However, because of the higher conversion rates and lower cost per click (CPC), newsletters end up generating a much better cost per lead (CPL). Based on this data, it would make sense to take some budget away from search engines, which have the highest cost per lead and put that money towards more newsletter sponsorships.
However, the customer did not stop there. Thanks to WebToCRM, they integrated their online campaign data into their salesforce.com implementation and decided to break down their leads into two classifications:
- Qualified leads: these are defined as leads with complete and accurate information, including the person’s full contact information, job title and decision making timeline.
- Unqualified leads: these are leads with incomplete or inaccurate information such as fake email addresses, etc.
How do the numbers hold up when you look at qualified leads instead of just the raw number of leads? The picture turned out to be quite different and is shown below.
With a simple “Cost per Lead” KPI model which is what many web analytics practitioners use, the company would have diverted money from search engines into newsletters. However, the more relevant “Cost Per Qualified Lead” KPI shows that the customer would be well served doing the exact opposite. Although search engines provided fewer leads per click than newsletters, they also provided a far higher percentage of qualified leads. The client is therefore going to continue its investment in search engine marketing.
Still wondering about the value of cross-channel analytics? Think it’s expensive? Take another look at WebToCRM. It lets you integrate your online campaign data into your CRM application, regardless of what web analytics or CRM tool you use. Best of all, the Free edition give you the same level of data that you see in this example.