In a world of constant change, data analytics remains the fuel for better customer engagement and personalized brand experiences. Now that customer data arrives from a variety of sources, companies will need to optimize every platform, channel, and touch point to gather consumer information and create a more complete view of their customers.
Despite the plethora of data you collect, without the right data sets and KPIs, it’s almost impossible to know if you’re capturing leads that will generate revenue for your company.
Show me the money: 5 revenue generating KPIs
When thinking about online lead generation, there are 5 revenue generating KPIs that companies should keep in mind when creating their websites: Unique users, conversion rate, close rate, deal value, and revenue per session.
Unique users: When it comes to lead generation, repeat sessions from the same user are typically not beneficial, because additional visits from one person usually don’t generate additional revenue. A majority of companies make the mistake of focusing solely on the number of sessions on the site to determine whether their website is successfully designed.
When creating a lead generation site, companies should be increasing the number of unique users that visit their site, enticing them to perform the desired action.
Conversion rate: Tracking visitors to your site cannot be the end goal. Companies must be able to measure the percentage of sessions that result in the intended action, or visitors that are converting. For a lead generation site, companies should track the percentage of sessions that result in a lead capture fill.
Close rate and closed deal value: Close rate is the percentage of leads that are converted into revenue for your company. A lead that does not become a customer is of little value. The ability to close is usually entirely external to the website, but is still an important metric that affects the websites decisions.
Closed deal value helps companies determine how much a closed deal is worth to the company. Like close rate, this value is measured outside the website, but still affects websites decisions and helps evaluate if the website design is effective.
Revenue per session: Though this metric can be more difficult to track for a site focused on lead generation compared to a retail site, it is valuable for companies to have an estimate of this number. If a lead generation site has a conversion rate of 10%, a close rate of 20%, and a closed deal value of $500, the equation to calculate revenue per session is .10*.20*500= 10. With this in mind, a company should not spend more than $10 for each website visitor it acquires through advertising or other channels.
If your site isn’t generating leads at the level you desire, evaluate the KPIs you’re tracking to ensure you have the right measures in place for success.
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