Lead Generation is not fast, easy, or simple
Someone told us that the formula for sales is Traffic + Conversion = New Customers.
If it were only that simple to get new customers.
If conversion is ecommerce purchase then maybe this formula could work. But not for service providers who generate leads. That formula for sales and new customers looks more like:
Traffic + conversion +lead capture +follow-up +educating/nurturing +contracting = New Customers
Building a funnel is not a 2 step process of turn on campaigns that drive traffic setup a landing page and then all of sudden you have conversions. Especially not for companies that generate leads.
Funnel Science is a social experiment that isn’t conducted in a lab or a vacuum. There are forces that occur in the world that impact sales that are almost impossible to track and measure against campaigns. But sales and marketing and marketing can be tested and there are proven formula’s that work.
One of the biggest surprises we have at Funnel Science is the ROI formula. It is shocking how many marketing people can not accurately state what ROI means or how to calculate ROI.
Revenue – Costs / Costs = ROI
At your company do you only measure closed sales where revenue is collected or do you adjust your formula for leads in the pipeline? Or track both like we do?