How Much is a Sales Lead Worth to You?
What is a sales lead worth? This question has come up a number of times in recent client conversations.
There are various means of gathering prospects and starting those prospects into leads on their journey into the sales funnel.
To consider a few:
• Social Media Networking and Engagement
• Email Marketing
• Online presence
• Content Marketing
• Search Engine Optimization
• Web Advertising
• Social Media Advertising
• Direct Mail
• Outsourced Telesales
Many of these come with a cost. Some of this seems to be a rather significant cost. But even if you do this yourself for free or at a low cost, it will have an unseen cost, particularly your time and energy. Your own efforts may be misplaced, misguided and woefully ineffective.
How do you evaluate these options? To start with, everything you try, you need to ask yourself “how effective was it?”
How many leads did it generate? What was the quality of those leads? How many of those leads turned into prospects? Did those prospects match your ideal customer profile?
How many of those leads turned into new customers? Now consider, what was the average cost of a lead from that tactic? How many leads from the tactic do you need to gain a new customer?
What is the net profit value of your average customer?
Now it is time to consider payback.
Cost to gain a new customer = (cost per lead) x (number of leads to gain new customer)
Compared to the average profit of a new customer; does that appear to be a worthwhile investment to realize a great payback? Yes? Do a lot more of that. No? Why do you continue to invest in that tactic?
On the surface a lead generation tactic that may seem expensive but is actually successful in helping you grow your business profitably may not be expensive at all!
I am always happy to have a discussion to evaluate your lead generation process. Feel free to book a time at: schedule Tom