If you’re trying to grow your business, you know how important it is to generate quality leads that convert to closed sales. Increasing lead generation and designing a lead generation process is only successful if the leads are turning into customers. That’s why you should be focused on your web lead ROI, or web lead return on investment.
Understanding web leads ROI can be somewhat difficult, so in order to better see the importance of a web lead’s return on investment, ask yourself the following question: How much is a web lead worth and why does it matter? Here are a few answers to that question:
- It determines how much you’re willing to spend on SEO
- It determines how much you’re willing to spend per click on paid search
- It makes decisions about budgeting for other marketing initiatives easier
- It simplifies things when you try to analyze ROI for measurable marketing efforts
It’s critical to know how much a lead is worth to your company so you don’t waste time and money. However, it can be difficult to arrive at a number that shows exactly what a lead is worth. The following formula can help you reach that number:
Lead value = lead quantity x conversion rate / revenue
Say, for example, you have $8,000 in revenue. You know you had 300 leads, and your sales team estimated a 3 percent conversion rate from lead to paying customer. Three percent of 300 is 9, so you have 9 customers per 300 leads. 8,000 divided by 9 is $888.88, which means each converted lead, or in this case each customer, is roughly worth $889. Keep in mind you may have to run these numbers against revenue from products with different price points, etc., but this general formula is universal.
Now that you know the lead value, you can apply that knowledge to your paid search budget, your lead generation marketing budget, and any other related budget. You’ll be able to figure out what your return on investment is with certain strategies. Knowing web lead generation ROI is especially critical because it determines whether your leads are profitable. Remember that leads from different sources convert at different rates. That’s why tracking your website is so important. You need to be able to accurately attribute revenue to lead source.
The Impact of Inbound Marketing on Web Leads and ROI
While there are many lead generation marketing strategies companies can use to generate leads, perhaps the best strategies for generating high-quality leads involve inbound marketing. Inbound marketing refers to marketing activities that bring visitors in, rather than going out to get a potential customer’s attention. Examples of inbound marketing include blogging (which, according to HubSpot, is the number one method for increasing traffic, with SEO in second place), SEO, social media, PR, and landing pages.
Inbound marketing earns the attention of customers. In fact, 92.3 percent of companies using inbound marketing increase their traffic, and 92.7 percent of companies using inbound marketing increase their lead generation. Inbound marketing is a great way to draw consumers to your website because of the relevant, interesting content you’re making available. Plus, 42.2 percent of companies using inbound marketing increase their lead-to-sale conversion rate. Here are some other interesting, convincing statistics about the success of inbound marketing.
- Landing pages and calls to action champion as the number one method for increased leads—blogging comes in second place.
- 78% of small businesses attract new customers through social media.
- Inbound practices produce 54% more leads than traditional outbound practice.
- Nurtured leads make 47% larger purchases than non-nurtured leads.
- Inbound marketing costs 62% less per lead than traditional outbound marketing.
With inbound marketing, your ROI and lead generation ROI almost always improve over time. Why? As you create new content, you’ll see that certain blog posts, web pages, and other high-quality content continue to generate leads and customers long after you’ve invested time and money to develop them. Inbound digital marketing strategies align content with customer interests. By drawing upon consumers’ interests, sales reps can naturally nurture leads along conversion paths so that they turn into customers. They’ll also know how to impress these customers so they become outspoken promoters of the company.
Ways to Increase Your Web Lead ROI
If you’re already using inbound marketing techniques to enhance your business-to-business lead generation marketing process, then you know there’s always room for improvement and more growth. Implementing inbound marketing strategies is just the first step—refining them to increase your web lead ROI and effectively nurture leads through the web leads funnel can be the tricky part. The following five tips can help:
- Improve calls-to-action. By positioning your CTAs in the space of your website that’s viewable without scrolling (called “being above the fold”), being clear about your offer in your CTA, and using images to complement the CTA text, you’ll have more attraction to your CTAs. Be sure to include links to the corresponding landing page in the CTA offer, and don’t forget to add CTAs to each of your blog posts.
- Improve landing pages. Remember that sometimes less is more. Keep the text concise and easy to scan, and remove links and navigation to maintain focus. Always match the headline of the landing page to the corresponding CTA, and make sure you emphasize the benefits of the offer.
- Improve offers. Your offers should be so compelling that consumers can’t resist taking you up on it. Link back to your site in your offer so that leads have a way to find you again. You should also create offers for each step of the buying cycle so that you can appease the needs and wants of every type of consumer.
- Improve lead nurturing campaigns. Lead nurturing campaigns like emails or blogs should be short, sweet, and to the point. Be clear about what you’re offering within the first two sentences. The subject line should always be attention grabbing, and, while images are important, keep them to a minimum in your emails.
- Measure and test again and again. Everything you do to improve your website and web lead ROI can be measured and tested. After creating a CTA and putting it on your homepage for a month, try a new CTA the next month and see which one garnered more attention. Monitoring and analyzing the performance of each of your strategies is essential to improving conversion rates and increasing ROI.
Contact Sprint Marketing Today for Help with Your Web Lead ROI
If you’re struggling to improve your ROI lead generation process, it’s worth contacting a lead generation marketing company or lead generation marketing agency, like Sprint Marketing. We have the marketing intelligence tools and expertise to give you a leads ROI analysis in order to see what you can improve.
Because we have the experience and knowledge to know what works in a lead generation process, let us help you improve your web lead ROI today. Don’t settle for subpar web leads that aren’t converting to sales. Contact us today for a free leads analysis and for help with your web lead ROI by calling 801-251-6855 or by visiting www.sprintmarketing.com.