5 Key Metrics to Assess Lead Nurturing
If a business wants its lead nurturing to be successful, there are several elements to pay attention to.
Metrics, quantifiable measures used to track and assess the success of a business practice, should be examined frequently.
Companies can determine the outcome of their inbound marketing endeavors throughout the process. Using this metric data, businesses can also alter their strategy to produce more favorable results.
Let's look at five of the most important metrics companies should focus on to assess their lead nurturing:
1. Customer Lifetime Value
Starting off with one of the largest metrics, customer lifetime value measures how much a client is worth to a company.
Marketers use this measurable to determine the value of the customer relationship presently and how it will translate over time.
According to The Digital Bridge, the customer lifetime metric should be at the core of every business strategy since it can help enterprises take a different look at their return on investment.
A marketing team can also use this figure to decide how much to spend on acquiring new customers.
When a client's customer lifetime value is higher than the cost invested in their procurement, that relationship is deemed profitable.
2. Click-Through Rate
This metric is a staple for inbound marketers and rightfully so.
The response figure measures the percentage of people who performed a particular action. In most cases, that behavior is clicking on an ad to arrive at the destination site.
Click-through rate helps businesses understand the efficiency and relevance of the content they're sending to their audience.
Low rates highlight problems in a company's alignment of offers with customers, according to Hubspot.
Conversely, high scores lead businesses to improve their marketing to maintain and increase their leads.
3. Unsubscribe Rate
This metric measures how well a company has held a customer's interest over time, according to CMS Wire. A business's unsubscribe rate should stay below 1 percent.
Anything higher than that signals either poor customer targeting or that the content is not relevant to its audience and people are disconnecting as a result.
High unsubscribe rates require fast action on the company's part.
This is a metric that should be monitored on a more frequent basis, so marketers can address the issue and remove or update uninteresting content.
4. Conversion Rate
Similar to click-through, conversion rates measure the percentage of customers who performed a particular action based on a company's marketing strategy and calls to action.
This metric determines the number of clients that actually made a purchase following their initial action.
Other figures may provide helpful hints for businesses to improve their efforts, but those results all have the same aim: To improve a company's conversion rate.
Conversion rate, then, is the biggest indicator of an enterprise's overall consumer strategy.
5. Sales Cycle Time
The goal of a marketing strategy is to turn a lead into a paying customer. Often potential clients will take their time making their initial purchase, leaving them in a company's sales cycle for the duration.
The sales cycle time metric measures the amount of time it takes for a lead to become a customer. If a business is performing strong lead nurturing practices, this figure should be low and the cycle should be shortened, The Digital Bridge reported.
Getting leads through the process more quickly can help enterprises better under that client's lifetime value and improve their marketing efforts.
Lead nurturing is an important step in the marketing process for companies. To evaluate how well the practice is going, businesses should keep certain metrics in mind.
These measurements can point out strategic flaws and highlights, helping enterprises better attain their goals.