Top 5 most used KPIs for lead generation

What are the five most used key performance indicators (KPI) for lead generation? As of the 4th of august 2011, by analyzing all executive dashboards created in DashThis! , we found the following are the top KPIs implemented.

1- New account signups

Obviously, this is the most relevant KPI as every new account signup is a highly qualified visitor. A big part of the job is done when someone is willing to test your product.

2- Conversion rate (# conversion / # visits)

In terms of lead generation, a conversion might be a free trial signup, a subscription to a newsletter, a visitor who watch a video or a download of sale documentation. In an executive dashboard, all of those should be grouped together as one KPI.

3- Qualified visits ratio (#qualified visits / # visits)

A qualified visit might be a visitor from your PPC campaign, someone who watch your video, browser to your product, etc.

4- Search traffic ratio (#visits from search / #visits)

Any visits coming from search. You might want to qualify those visits by defining relevant keywords.

5- Site abandonment by qualified visits (#qualified visits who didn’t convert / # visits)

You know the conversion rate, but who many qualified visits do you loose? Loosing valuable visits might mean loosing business.

Tell us what are the KPIs you use to track lead generation in your executive dashboard?

Category: Dashboards, Key Performance Indicators (KPI) 4 comments »

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Stéphane Guérin is the founder of DashThis, a painless reporting tool for marketers that offers self-service and custom solutions. He has been working on business Web projects for more than 15 years. He has a computer science degree and a MBA specialized in e-commerce from Laval University in Quebec City. That also explains why his writing can sound weird: He is a French Canadian! View his LinkedIn profile or email Stephane: stephane@dashthis.com

4 Responses to “Top 5 most used KPIs for lead generation”

  1. Damion Rutherfors

    Glad to see others talking about KPI’s!.

    I’m not sure my answer will apply directly to your service, but these are the ones I track. There are 4 of them.

    First, Marketing $ Used. If you know the amount of money needed to generate your actionable item, and you your goals of how many actionable items you need each period, you know the amount of money you need to invest to hit your goals. If you do not invest the money, you will not hit your goal (unless other things in the business process change).

    Second – # actions. As you mentioned in your first point.

    Third, ADA (average dollar per action). This KPI tells me, on average, how much revenue we make for each actionable item that occurs (for my company, it’s lead generation). For example, if I generate 100 actionable items, and generate $100,000 in revenue from those items, then my ADA would be $100,000 / 100, or $1000. This is a good “50,000 foot view” number to look at. If the number increases, I know we’re becoming more efficient with what we have to work with. If it drops, it tells me we’re losing efficiency, revenue, and profit – and I need to dig in deeper to find out why.

    The final KPI I track is marketing %. What percentage of my revenue went to my marketing budget. If, using the above example, I spent $10,000 to generate the results, then my Marketing % would be $10,000 in marketing / $100,000 revenue, or 10%. This is a CRUCIAL number to track. In many cases, all other parts/costs in your business remain consistent. Direct costs for a sale are typically similar. Fixed costs to run the business are typically similar. However, your marketing % can vary drastically based on the results you get from your investment. Every percentage you save/lose in your marketing percentage, goes directly onto your bottom line.

    Hope this helps add to the conversation!

  2. admin

    Hi Damion,

    This is very interesting. But would you put these KPIs into “lead generation” category? If so, why? I intent to write another post about e-commerce KPIs and those are the kind I think would fit into that category.

    Anyway, this is not a big deal as the objective here is to get the best you can get out of Web analytics, no matter into what category any KPI fits ;-)

    Thanks for stopping by! :-)

  3. Damion Rutherford

    Thanks for the feedback!

    As I mentioned, it might not match up exactly! I think after looking around more, this is KPI’s from a website analytic s view, correct? I originally found the post from a Google alert.

    For my reasoning, there’s more to track than just the “action’. All actionable items are not created equally. For example, you may have a campaign that’s bringing traffic and leads and such, but that’s as far as the process goes. Nothing comes from the lead, no sales, no revenue, etc. That’s the purpose, IMHO, for the other KPI’s that put a value on what you get from the lead.

    For example, let’s say I generated 10,000 website visitors, and 300 of them filed out a form requesting an estimate for services. OK great – I can tell my conversion rate is 3%. That’s what I call the “bucket theory” to stat tracking. By digging down into different sources, I might find traffic from search converts at 1%, and traffic from social media accounts converts at 20%. Obviously, I want to see if I can squeeze more out of the social accounts, and make changes to what is offered to the search traffic to bump that conversion.

    Now, going further, if I track the ADA of each action, I might find that, on average, I generate $100 from every actionable item (form submission using the example above). Again, its the average. The “bucket theory”.

    By digging into my data, I might find a source that generates leads but nothing ever comes out of them. From here I can find out reasons and make adjustments. Perhaps I have an affiliate program that pays for “leads”, and I have affiliates using shady tactics to get people to fill out the lead form, when their intention truly isn’t to get the service being offered.

    SO, summing all of that up, I like KPI’s that track each department in the business machine by themselves. I also like to have some “mix” KPi’s, typically, that take some data from the next department in the process and match it to the data in the current department. This helps me tell if that departments directly-tracked results are providing value into the next step of the business process.

    Hope that made sense!

  4. Stephane

    It sure makes a lot of sense! It obvious you’re not a rookie in Web analytics ;)

    Thanks for sharing :)

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