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Different sources give different data. Nevertheless, the latest studies suggest that around 10% to 15% of leads turn into deals.
To know whether that is enough for your business or not, you need to be able to manage your data and calculate your leads the right way.
Whether you work in B2B or B2C, there are many pitfalls and specifics to consider, so figuring out how many leads you need can be time-consuming and frustrating.
Only 5% of salespeople say the leads received from marketing are high quality. That tells us something is up with lead qualification.
Some leads turn into no-shows, some become buyers, and some take more than a month to be converted.
How do you find your customers and figure out where they come from? It all depends on what methods you use to get B2B leads.
What Is Lead Nurturing?
Lead nurturing is an effective way to convert qualified leads into customers.
It involves segmenting the leads into groups and using targeted content to market to leads within those groups to engage and lead them toward a decision to purchase.
Once you’ve captured the lead through your landing page, lead capture form, or other methods, the nurturing process begins.
Know Your Target Audience
Before you start calculating how many leads you need to make a sale, you must know the financial capacity of your target audience.
Leading the wrong people to your landing page will result in a high bounce rate.
This is why you should invest some time into creating a detailed ideal customer profile that explores the budget of your potential customers and their goals for the next quarter.
Without it, you won’t be able to make sense of other metrics, build correct KPIs and sales lead generation campaigns.
It all depends on what methods you use to get b2b leads. It’s not uncommon for companies to combine inbound and outbound methods to generate leads.
However, due to recent well-known developments, digital sales management shows a great conversion rate and staying up-to-par with modern needs.
How To Calculate Conversion RIO
According to HubSpot research, businesses specializing in software development, marketing, advertising, and finances, have the highest cost per lead ($51-$100).
That means they have higher revenue and ROI goals, and a larger number of leads.
Thus, the answer to the question “How many leads do I need to make a sale?” is very nuanced.
Conversion ROI is the return on investment per conversion. To calculate conversion ROI, you subtract the cost from the lead value and divide that by the cost.
MQLs vs. SQLs
In most cases, you should also expect traffic from the top of the funnel to be higher than those further down to become marketing qualified leads (MQL), and sales qualified leads (SQL).
Visitors that become MQLs and SQLs provide larger opportunities. They have been identified as leads who have engaged with you and are interested in your product or service.
On average, SQL conversion rates are higher than MQL conversion rates; the SQL is in the buying cycle while MQLs are not ready for the buying stage.
Different industries have different conversion rates.
Optimize Your Website
Build your site, so it is user-friendly. Allow for a simple customer experience in which prospects can navigate to the information they want efficiently and quickly.
A/B test your landing pages and ads – Perhaps you think that your landing page is the best because that is what seems right to you. But does the same translate to your audience?
Often, your target audience sees things differently, which is why A/B testing is your friend.
What Is Website Traffic?
- How many visitors do you receive each day? Each month?
- How many of them leave your website without doing anything?
- How many of them scroll through your pages or click CTA buttons?
How It All Breaks Down
Your sales cycle length, expected ROI, and revenue goals define the total number of sales leads you to need to make a sale.
So, you need to sit down with your marketing experts and sales executives and break each metric down to make sense of your needs and next steps.
B2C Lead Generation vs. B2B Lead Generation
The most obvious difference is that there are no decision-making groups in B2C.
While B2B lead research must be precise and accurate, B2C sales lead generation uses simpler ways to reach a big audience.
That big audience usually doesn’t require as many lead qualification and verification steps. With that said, calculating B2C leads is tricky.
An average B2C audience doesn’t depend on long-term deals. Therefore, any B2C buyer can instantly shift to a different service or product.
Therefore, generating B2C sales leads is a constant, never-ending process.
Determining Your Sales Cycle Length
How many resources does it take to convert a lead into a client?
As you can see, when you need to calculate how many B2C sales leads to make a sale, it’s all about how much it costs you to generate those leads and the average budget of your target audience.
How many B2B sales leads do I need? Speaking of B2B, it all depends on your industry and the industry you sell to.
What Is Lead Conversion?
Lead conversion is when a visitor performs an action that turns them into a lead.
The key to conversions is acquiring qualified leads and nudging them down your sales funnel.
Know the benchmarks in your industry to compare yourself fairly to the competition. However, always be on the lookout for tactics that might help you surge ahead.
If your numbers fall below your industry standard, you need to get a clear picture of where your company is struggling and focus on implementing new strategies for success.
Lead conversion metrics help you objectively measure the success of the marketing and sales teams to generate leads, convert them into customers, and doing it efficiently.
But conversion can mean any of these other customer behaviors: becoming a newsletter subscriber, downloading your white paper offer, signing up for an online seminar, sharing content on social media, or a specific length of time spent on your homepage.
High conversion rates mean more sales for your business. The more sales, the more leads will likely move quicker down the sales funnel.
A high conversion rate also points to successful alignment between the sales and marketing teams.
Calculating The Lead Conversion Rate
Are your lead conversion rates above average?
Many business owners and marketers don’t know their lead conversion rate, so they don’t know how well or poorly they are converting.
It’s crucial to understand lead conversion and how to measure it.
You can then develop strategies to improve your lead conversion rates and get more value from your lead generation activities.
This metric focuses on how many leads turn into sales and drive revenue.
Divide the total number of sales for the last month by the total number of leads you generated within the same period. Then, multiply it by 100.
If you closed 150 deals last month, while your sales lead generation brought you 500 leads, your lead conversion rate is 30%.
You’ll understand how many more leads you need to hit your revenue goal with those metrics and your average sales price.
How Can I get Leads Faster?
Speed to lead is an effective strategy for converting leads into customers. The faster you can contact a lead, the more likely the lead is to convert.
One way to reduce the time to connect with a lead is to instantly qualify them through your web form.
You can add an appointment scheduling app that enables leads to book a time to speak with a sales rep.
For example, adding Kennected Video to a lead capture form enables the lead to immediately arrange a telephone call or make an appointment with a sales rep.
This reduces the speed to lead to its minimum, as the lead will be reaching out as soon as they are ready to meet.
How To Calculate Cost Per Conversion
The formula asks you to divide the total advertising and marketing cost by the number of conversions to calculate the cost per conversion.
Why You Should Track Business Growth
Every company’s goal is to get a good conversion on their leads, which is why many employ metrics to monitor the effectiveness of their lead generation strategies.
Conversion rates tell you how quickly your leads turn into clients, which is essential for business growth.
High conversion rates mean that you receive more profits for turning the lead into a paying customer for every dollar you spend to get a lead.
It’s important to know your lead conversion and lead-to-sale conversion rates to measure the effectiveness of your lead management process.
Knowing the number of leads enables you to understand how to distribute your resources, organize your sales teams’ work and appointment setting, and plan your roadmap.
So, it’s high time for you to find out what formula you should use to plug in your metrics.
Knowing whether you have a high or low conversion rate speaks volumes about how successful your marketing and sales efforts are.
There is a reason why over 40% of sales executives consider the lead qualification and closing the most challenging part of their job.
More than 70% of companies don’t reach their revenue goals because they generate less than 50% of leads.
And it’s not because of high competition.
How To Get Qualified Leads With Kennected
It only seems fitting to share wisdom on a revolutionary lead generation solution to make your life easier.
We work alongside LinkedIn because it’s the most used social platform for professionals. Cloud Kennect allows automated messages to reach out to prospects on your behalf.
All you do is customize the messages and say who and when.
It’s as easy as lead generation gets. Visit our website today!