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The 3 key metrics that will boost your demand generation

5 min read By July 8, 2021 No Comments

End-user campaigns and online lead generation are relatively new within the channel. Channel marketers who are launching campaigns through our platform often ask us what metrics they should be watching, to see whether they are successful. We’ve done the research for you and will tell you the 3 most important metrics to monitor in your online lead gen funnel.

But first, we’ll take a step back. Because there are tons of marketing metrics you and your team could and maybe even should track. Think of website metrics, tracking emails, social media stats, SEO metrics, and many more. This could be a bit overwhelming, especially when you don’t have a lot of time to deep dive into the data anyway. According to HubSpot’s state of marketing report only 53% of you are using attribution reporting. While it’s the key to personalized, high-converting interactions — at scale. Next to that, 4 in 10 marketers rate the ROI of marketing campaigns ‘extremely important’ or ‘very important’. But only 37% feel ‘very confident’ when making budget decisions for investing in programs that influence revenue.

From our point of view that has to do with actually understanding and measuring metrics that show what you want to know. Specifically when it comes to channel marketing. That’s why, in this video and blog, we’ll cover the metrics that matter most to channel: CTR, CR and CPL.

Metric #1: Click Through Rate (CTR)

The first step of the funnel is to turn complete strangers into visitors. The best ways to do this? Through advertising and organic social media posts.

The #1 mistake we see is that vendors are trying to sell their products in the ad or social post already. The job of an ad isn’t to sell the product, it’s job is to ‘sell the click’. All you have to focus on is creating an ad that triggers the curiosity of the end-user and makes them click.

The most important metric to watch for this step of the funnel is the Click-Through-Rate, better known as CTR. The formula to calculate this is the number of people who clicked on your ad or social media post, divided by the total number of people who have seen your ad.

The average CTRs for B2B are:
  • 2% for Google Adwords
  • 0.5% for LinkedIn advertising
  • 1% for Facebook organic
  • 2% for LinkedIn organic

These percentages might sound low, but if you reach 1.000.000 end users with LinkedIn organic posts, you will generate >20.000 local website visitors through your resellers. If your ads and social media posts are performing similar or better than the CTRs I’ve just mentioned, it means that your campaigns are performing above average.

Metric #2: Conversion rate

Once someone has clicked on an ad or a social media post, they’re redirected to a landing page. They have now gone from Stranger to Visitor. But now we want to convert the visitors into leads. There are loads of metrics you can track on your landing page, like unique visitors, page views or the avg. time on page. But the #1 metric to measure is the conversion rate.

The conversion rate is calculated by the number of people who left their contact details divided by the total number of people who visited the landing page.

The average conversion rate in B2B is 2,23%. If your conversion rate is higher, you’re doing better than average.

If you’re a high-performer and want to belong to the A-players, the top 25% B2B landing pages have a conversion rate of 4,3% and the top 10% B2B landing pages have a conversion rate of 11,7%. Let that motivate you to keep optimizing your landing pages.

Metric #3: Cost Per Lead (CPL)

The third metric is the most important one to follow. That is Cost per Lead. This is the budget spent on the campaign divided by the number of leads.

To give you an example: if you spent $5,000 on a LinkedIn advertising campaign, which generated 20 leads, your Cost Per Lead would be $250. The average Cost per Lead in IT & Services = $370. For Enterprises with over $500 million in revenue, it’s $429. So if your cost per lead is below $370, it means that your campaign is performing better than average. 

When we analyze the data from the Channext platform, the top 20% of campaigns have a CPL between $120 and $200.

CPLs, by Company Revenue
Not surprisingly, given the above results, the organizations with the most annual revenue are also paying the most for their leads:
  • $500+ million: $429.01;
  • $10-500 million: $179.48;
  • $1-10 million: $184.64; and
  • <$1 million: $166.01.
CPLs, by Company Size
Enterprise organizations (more than 1,000 employees) are paying much more than smaller organizations, per the report.
The average cost-per-lead broke out as follows:
  • 1,001+ employees: $348.93;
  • 201-1000 employees: $212.12;
  • 51-200 employees: $180.47;
  • 2-50 employees: $146.94.

 

Conclusion

If you want to monitor the success of your online lead generation campaign, there are 3 metrics to watch.

  • The Click-Through-Rate of your ads and social media posts
  • The conversion rate of your landing pages
  • and The Cost-Per-Lead to make sure you get the most out of your campaign budget

Did you know that less than 15% of channel marketing campaigns reach the end user through partners?

Vendors are having a hard time activating their partners and measuring the ROI of their channel marketing. Channel budgets & campaigns are hitting a ‘brick wall’ and are not reaching the end-user. Marketing resources and MDF budgets are wasted and revenue opportunities are missed. This whitepaper offers you a three-step strategy to tackle these major issues. It’s time to start mobilizing your resellers!


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