In this post we’ll walk you through a process that can focus on how our Marketing budget can be best spent to make your number with less leads.
Cost Per Lead Vs. Cost as a Percentage of Revenue: Shifting the Mindset
The old way of evaluating a lead was looking at the straight lead cost. Instead, let’s shift to lead cost as a percentage of revenue to evaluate the lead. While cost per lead is an easy measure, it can lead to using cheap but ineffective lead sources.
A percent of revenue approach allows you to fund a budget that invests in the best lead performance.
Let’s look at examples of both scenarios:
Instead of setting a goal of finding those leads sources that cost less than £100 per lead, set a target to spend one percent of revenue:
Planned deal size: £10,000
Planned lead gen budget 1% of revenue: £100 per lead
Revenue generated less lead cost: £9,900
Now let’s increase the average deal size to £20,000:
Deal size: £20,000
Planned lead gen budget 1% of revenue: £200 per lead
Revenue generated less lead cost: £19,800
We shifted cost per lead to percentage of revenue, resulting in increasing the price of a deal. This directly increases the allowable spend for lead generation. It also increases revenue and also assist in making your number with less leads.
ProAptivity deliver Maximizer CRM which enables users to track, monitor and record all marketing activities, make your number with less leads and return on investment indicators. To find out more speak with us today on 028 90735630 or by email at firstname.lastname@example.org