Estimate Lead Conversion by Source
In the last blog, we discussed Lead Velocity. In this blog, we will discuss the other important funnel metric, that is:
This information is also derived from “Lead Conversion” reports in the CRM, similar to Lead Velocity. However, the cohort to be selected is different – it comprises of Leads created in a full quarter sufficiently behind in the past. If the quarter selected is too recent, leads from many slower velocity Lead Sources would not have converted at the time of the analysis.
A rule of thumb is this: if the average Lead to Win duration is X days, give least 2X days as the gap between the end of the cohort quarter and analysis time. For example, if X is 90 days, give at least 180 days from end of the cohort quarter till present.
As in the case of Lead Velocity calculation, make sure the following three fields are included in the report.
- Lead Creation date
- Opportunity creation date (or an indicator that Opportunity got created)
- Closed-Won date (or an indicator for win)
Use this report to formulate the final report as below.
Here is an example: Suppose there were 10,000 leads created in the quarter selected. Then say 1,000 of them became Opportunities as of now (10%), and 100 of them became Wins (1%).
Just like Lead Velocity, Lead Conversion will also vary by lead source. The insights gained will allow allocating more marketing focus on higher converting lead sources.
Make sure that velocity and conversion reports are the key components of your marketing analytic framework. The insights from such reports will help you do your marketing function much more wisely than otherwise.