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
- The # of impressions you’ll need
- The number of leads you need to generate
- Whether your campaigns will produce enough customers/revenue to hit your goals
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:
- Increase your reach – generate more impressions (send out more emails, launch another campaign, etc.)
- Improve your response rates with better offers, better targeting, better creative
- Improve your conversion rates
We explored this topic in more detail during a 20-minute webinar last week. Contact me directly with questions!
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