Marketing Leads analysis using ROI calculator
Lead analysis ROI Calculator
Use the ROI calculator to analyze how your marketing campaigns perform. Details are described below the calculator.
Not all marketing campaigns are created equal. Some produce a lot of buzz with little sales, while others go unnoticed but land a few major deals. So how can you realistically compare marketing campaigns with disparate results? Undeniably, the best indicator is the bottom line – the campaign ROI. But to get more granular analysis, it’s best to divide the campaign into stages and compare the following metrics:
- Total Leads: Total number of unique, identifiable leads generated by the campaign. This ignores duplicates, anonymous and fictitious leads.
- Marketing Qualified Leads: MQLs are a subset of total leads. These represent the target audience you can potentially sell to (target industry, company size, geographic region, etc.)
- Sales Qualified Leads: SQLs are a smaller subset of MQLs. These leads have a reasonable chance of closure (have budget, need, and urgency). The SQLs are the ones your sales team gets excited about.
- Deals: These are the closed sales – money in the bank and a happy new client.
By tracking these numbers, you can calculate step drip ratios. These can pinpoint your success factors or bottlenecks in your campaign. Depending on the type of campaign your ratios will look different, as shown below with actual lead counts (keep in mind the calculator shows step-drip ratios and not lead counts.)
- Lead Generation: These campaigns give small number of total leads that taper off proportionally to MQLs, SQLs and Deals. A good example is a campaign that generates sale demo requests.
- Demand Generation: Gives medium number of total leads. Huge drop from MQL to SQL. Examples include whitepaper downloads, webinars, speaking sessions, etc. That’s because your potential market may be interested to hear your webinar, but not necessarily looking to buy a solution.
- Branding: Gives highest number of total leads, but very little MQLs. Examples include open-for-all contests, free give-aways on Twitter, etc. Large scale branding may get you heard everywhere, but a small portion is your potential market.
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Martin L
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Very nicely presented. Most of us are concerned with ROI and this perspective helps to understand shortcomings or performance enhancers of campaigns.
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Goran
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I find your calculator useful. Can you make on specifically for Google Adwords? I want to find out which ads work better and why, but its confusing on the Adwords interface.
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Zaki Usman
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@Martin: Thanks martin, but the calculator is just the tip of the iceberg. There are so many other metrics that go in measuring a good/bad campaign.
@Goran: You can use the same concept and apply to any campaign, not just adwords.
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Tina Granholm
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This is a good calculator to understand where you can focus your marketing efforts on. Most of our efforts at my company have to do with branding, and too much idea/name creation, with very success in actual leads.
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