Measuring lead succes
| Original Lead Source (1st Touch) | MQ | SQL | SQO | Won | SQL/MQL | SQO/MQL | Won/MQL | CAC (If Applicable) |
|---|---|---|---|---|---|---|---|---|
| Paid Search | ||||||||
| Organic Search | ||||||||
| Partner | ||||||||
| Event | ||||||||
| Content Syndication | ||||||||
| Paid Social, LinkedIn | ||||||||
| Paid Social, Facebook | ||||||||
| Paid Social, Twitter | ||||||||
| Paid - Other | ||||||||
| Organic Social | ||||||||
| Direct Traffic | ||||||||
| Direct Mail | ||||||||
| OOH (Out-of-Home) | ||||||||
| TV | ||||||||
| Other |
How to Use This Table in Marketing Measurement:
- Data Entry:
For each marketing channel (rows), enter the number of leads that reach each stage of the sales process (MQ, SQL, SQO, Won) during a specific period. - Calculating Conversion Rates:
- SQL/MQL: Calculate the conversion rate from Marketing Qualified Leads (MQ) to Sales Qualified Leads (SQL).
- SQO/MQL: Calculate the conversion rate from MQ to Sales Qualified Opportunities (SQO).
- Won/MQL: Calculate the conversion rate from MQ to Won deals.
- Understanding Cost:
- CAC (If Applicable): Enter the Customer Acquisition Cost if it's applicable and trackable for each channel.
- Analysis:
- Identify which channels are most effective at moving leads through the sales funnel.
- Compare conversion rates and CAC across different channels to allocate resources effectively.
- Look for patterns over time or during specific campaigns to adjust strategies accordingly.
- Strategic Decisions:
- Use this data to make informed decisions about where to increase investment and where to cut back.
- If a channel has a high CAC but also high conversion rates to Won deals, it may still be worth the investment.
- Conversely, a channel with low conversion rates and high CAC may need to be re-evaluated or optimized.
- Tracking and Optimization:
- Regularly update the table with new data to keep track of performance over time.
- Continuously test and optimize each channel for better performance metrics.
This table serves as a dashboard for the health of your marketing efforts, helping to identify which channels bring in the most qualified leads, which have the highest conversion rates, and where the most efficient use of budget is occurring.
Here's what each of the acronyms in the lead stages typically means:
- MQ (Marketing Qualified Lead): A lead that has shown some level of engagement or interest that qualifies them beyond a standard lead. This is usually based on lead scoring models which take into account actions like downloading a white paper, signing up for a webinar, or repeated website visits.
- SQL (Sales Qualified Lead): A lead that has been reviewed and vetted by the sales team and is considered ready for direct sales follow-up. An SQL has met certain criteria that indicate a higher likelihood of becoming a customer, such as having the budget and authority to make a decision.
- SQO (Sales Qualified Opportunity): This is a lead that has moved further down the funnel to become an opportunity. At this point, the sales team has engaged with the lead and determined that there is a genuine opportunity for a sale to occur. An SQO indicates a detailed discussion has taken place, and the potential customer has shown a strong intent to purchase.
- Won: This is the final stage where the lead has converted into a paying customer. The sales process has been completed successfully, and a transaction has occurred.
The process by which a lead changes from one stage to the next typically involves several steps:
- Initial Engagement: A lead is attracted through various channels like paid search, organic search, or social media, and takes an action that captures their information, placing them into your CRM.
- Marketing Qualification: Marketing teams then use lead scoring based on the leads' actions and engagement level to determine if they should be considered an MQ. If the lead score reaches a certain threshold, they are passed on to the sales team for further qualification.
- Sales Qualification: The sales team evaluates the MQs against a set of pre-defined criteria to see if they have a genuine potential for purchasing. If a lead shows clear need, budget, and buying authority, they are marked as an SQL.
- Opportunity Development: The sales team works closely with SQLs to understand their needs better, align solutions with their pain points, and build a value proposition. If this process reveals a solid chance of closing a sale, the lead becomes an SQO.
- Closing the Sale: The sales team continues to nurture the SQO with the goal of making a sale. When the lead signs the contract or makes a purchase, the SQO is marked as 'Won,' signifying a closed deal.