Are you generating enough leads to meet your revenue goals? If you’re winging it, you’re less likely to hit your numbers. If you have to feed a village, you can’t toss your line and hope for the best.
Instead, tie your marketing campaigns into your company’s customer and revenue goals. A few simple calculations can help you understand
Here’s how: First, calculate the number of customers you’ll need to generate.
|For what timeframe do you want to generate this estimate?|
|What’s your revenue goal for this timeframe?||A|
|How much does an average customer spend in this timeframe?||B|
|Total number of customers needed (A/B)||C|
Now estimate the % of leads that become customers. (If you don’t know this figure, the head of your sales team should – or use the calculation below.)
|Number of new leads you generated in the last 6 months||D|
|Number of customers generated from those leads||E|
|% of leads that become customers (E/D)||F|
Now you can project how many leads and impressions you’ll need from your campaigns in this period:
|Number of leads you’ll need (C/F)||G|
|Average response rate you get from your campaigns (as a %)||H|
|Number of impressions you’ll need to generate (G/H)||I|
It’s a simple formula but it’s a starting point. When you set up your campaigns with a focus on the end result — customers & revenue — you’re in a better position to hit your goals. And if you’re falling short, you can work to:
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