8 Key Lead Generation Metrics and What They Mean 

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June 13, 2022

Are you looking to generate more leads for your business? 

If so, it’s important to track the performance of your lead generation metrics. 

This will help you determine what is and isn’t working, so you can focus your time and resources on the strategies that are most effective. 

Let’s take a look at eight of the most important lead generation metrics to help you fine-tune your strategy and see better results.

1. Lead score

Because not all leads are created equal, a lead scoring system is necessary. A lead score is a numeric value that is assigned to each lead, based on their likelihood of becoming a paying customer. 

This score is determined by factors like the lead’s demographics, behavior, and engagement with your brand. 

The higher the score, the more likely it is that the lead will convert, and the easier it is for your sales team to get in touch with qualified leads.

Lead scoring is a valuable tool because it helps you prioritize your leads, as well as define the value of your marketing activities. 

You can focus your attention on the hottest prospects and most successful strategies, rather than wasting time on leads and techniques that are unlikely to convert.

What’s a good lead score? 

Your unique lead scoring system will depend on your business and your ideal customers. The more a lead performs certain actions (i.e., clicking a link or filling out a form) or meets specific demographic requirements, the higher their score will be.

2. Sales-qualified lead to marketing-qualified lead ratio

A sales-qualified lead (SQL) is a lead that’s familiar with your business and is ready for a sales message.

A marketing-qualified lead (MQL) is a lead that doesn’t know too much about you yet and is only ready to see marketing material from you.

The SQL to MQL ratio shows you just how well your marketing efforts are working to convert customers.

This ratio is important because it shows you how effective your lead generation metrics are. The higher this number is, the better your marketing strategy is. Similar to lead score, this ratio is dependent upon your own internal system for identifying sales- and marketing-qualified leads.

3. Sales closure rate

The sales closure rate is the percentage of leads that are converted into paying customers. 

This metric is important because it shows you how effective your sales team is at closing deals, and helps you estimate how much revenue to anticipate after every x number of sales calls. 

The formula is as follows: (total # sales closed / total number sales calls) x 100.

If your sales closure rate is low, that means your sales team needs to work on their skills, or you need to bring in more qualified leads. 

Ideally, you want a high sales closure rate, because that means your sales team is doing a good job of converting leads into customers. 

4. Upsell ratio

The upsell ratio is the number of customers who buy additional products or services divided by the total number of customers. 

This metric is important because it shows you how effective your upselling efforts are. Once you know your upsell ratio, you can start working on ways to improve it. 

If you’re not happy with your number, consider offering additional products or services that complement your main product. For example, if you sell software, you could offer training as an upsell. 

You can also make it easy for customers to buy additional products or services by bundling them together. Maybe you sell website design services and can offer a package that includes hosting and domain registration. 

Another option is to offer discounts on additional products or services. 

There are a number of other strategies you can use to increase your upsell ratio, but it all comes down to whether you’re building relationships with your customers and providing legitimate value.

5. Call to lead ratio

Your call to lead ratio is the total number of sales calls divided by the total number of leads. 

This metric is important because it shows you how frequently you get a lead on a call, as well as indicates how effectively you move leads down the funnel. It’s important to note, however, that the number of “calls” won’t always be constant. You can also invert the ratio for outbound cold calling, where there are more calls than actual leads.

Ideally, you want a high call to lead ratio, because that means you’re driving a good portion of qualified leads to a call.

6. Average lead value

Your average lead value will help you get a better understanding of your marketing ROI. When calculated properly, it will tell you just how much you need to spend in order to reach your goal. 

Computing average lead value is a pretty complex process, given that most businesses have leads coming in from various sources, each with a different budget and different costs to obtain those leads. 

Fortunately, this lead value calculator can help.

To improve your average lead value, you’ll need to either increase the amount of money your average lead spends, or attract higher quality leads. Better leads will require better targeting, and getting your leads to spend more will often require you to either increase your prices, refine your lead nurturing process, or implement a valuable and relevant upsell.

7. Lead or chat to website traffic ratio

The lead or chat to website traffic ratio is the total number of leads or chats divided by total website traffic, multiplied by 100. 

The lead to website traffic ratio will show you how many of your website visitors are actually converting to leads. The chat to website ratio will tell you how effective your chat option is.

If either of these numbers are unsatisfactory, chances are that you need to improve your user experience, copy, and/or lead magnets. Split testing is the best way to determine what changes need to be made.

8. Lead to ad ratio

The lead to ad ratio is the number of leads divided by your ad spend. 

This metric is important because it shows you how effective your ads are at generating leads. When this number is higher than your average lead value, you’re making more money from your leads than it costs you to acquire them. Naturally, this is what you want!

If you find your ratio to be too low, you’ll again want to split test different CTAs, headlines, and landing pages to decipher where changes need to be made.

By understanding these numbers, you’ll be able to fine-tune your lead generation process and get the most out of your marketing budget. 

Lost? Not sure where to start? Schedule a free strategy call with Bizzuka today to learn where you may be falling short in your lead generation strategy.