Are you generating sufficient leads?
WHAT DO YOU MEAN BY LEAD?
A lead could be an individual visitor or a company / organization who are interested in your product or service. The leads are again sub divided into two:
- Hot Lead: who are a qualified lead and ready for purchase with little or no convincing required, most of them who are well informed, requiring a small push to conversion
- Cold Lead: the kind of leads which needs to be educated about your product / service and requiring more convincing for conversion.
WHAT DO YOU MEAN BY CONVERSION?
A conversion is an action taken by the visitor; it could be by submitting form, a phone call, a social share, download of informative materials from website. Keeping a track of conversion is absolutely essential to understand the performance of each channel, ROI to take an informed decision.
From leads –to- conversion funnel will help to decide on the number of leads required each month to achieve your goal.
LET’S TRY TO UNDERSTAND YOUR GOAL?
First decide your revenue target? Let’s assume your revenue target is Rs. 100, 00,000.00 (1 Cr)
The average sales revenue by a customer Rs.20, 00,000.00
Calculate how many customers are required to meet your goal?
The no of closings to generate that revenue is; Total revenue 100, 00,000 / Average sales revenue 20, 00,000 = 5. Total customers required to meet your Goal: 5
HOW MANY QUALIFIED LEADS DO YOU NEED TO GENERATE FIVE CUSTOMER?
If we go by the statistics: Qualified Lead – to – customer rate is 2%,
Assuming 5 closings is 2%, We would require 250 leads.
5 customers / .2% *100 = 250 Qualified leads
HOW MANY VISITORS DO YOU NEED TO GENERATE 250 QUALIFIED LEADS?
Going by the ratio of is 2-3% visitors –to-lead conversion, Let’s take the lesser side of 2%
250 / .2% * 100 = 12500 visitors
Total 12500 visitors required for 5 customers
Now we have the required statistics, the total leads required to meet our goal
250 Qualified Leads
5 Customers / Sales Closings
Now that you have the required statistics to meet your goal,
HOW DO YOU GET 12500 VISITORS AND WHAT STRATEGY TO BE IMPLEMENTED TO MEET THE REQUIRED TARGET? Know More click here
GB Marketing & Communications | Navi Mumbai