Calculating your lead generation numbers is simpler than you think.
Here’s a step-by-step process.
Before you can do the math, you need to master the B2B funnel. Our B2B funnel looks like this (from top to bottom):
A visitor fills out a form. Or you know the prospect, who’s returning to your site. Both have your permission to market to them.
Marketing Captured Lead (MCL)
Inquiry becomes MCL when you confirm a match with your ideal customer profile (ICP).
Marketing Qualified Lead (MQL)
MCL becomes MQL when a prospect meets a predetermined qualifier. Prospect shows the right level of interest online or with a lead development rep (LDR). MQLs warrant one-to-one nurturing.
Sales Qualified Lead (SQL)
MQL becomes SQL when he/she has agreed to a meeting with sales. The prospect also meets predetermined qualification criteria.
An SQL is turned over to sales.
Understanding your leads’ life cycle is half the battle.
Mastering the “Lead Waterfall”
To calculate meaningful lead generation goals, you’ll need to look at every stage of the funnel. Both quantity and conversion rate apply.
This example illustrates the “lead waterfall” concept.
Say your company’s revenue goal is £1 million. Marketing’s expected contribution is 25%, or £250,000. Divide £250,000 by average deal price, which is £10,000. The number of deals needed to meet this goal is 25.
Now here’s where the numbers really start to flow. At each stage of the funnel, apply this formula:
Required Marketing Contribution ÷ Average Conversion Rate = Number of [Lead Type] Needed
To close 25 deals, with sales averaging a 25% win rate, 100 opportunities are needed.
For 100 opportunities, with a 50% SQL-to-opportunity conversion rate, you’ll need 200 SQLs.
For 200 SQLs, with a 50% MQL to SQL conversion rate, you’ll need 400 MQLs.
For 400 MQLs, with a 50% MCL-to-MQL conversion rate, you’ll need 800 MCLs.
For 800 MCLs, with a 3% inquiry-to-MCL conversion rate, you’ll need 26,666
This is a basic example of how to calculate lead generation numbers. For more information on using Marketing Automation to assist with Lead generation contact ProAptivity on 028 9073 5630 or via email at email@example.com