Sales Lead “ROI Calculator”

Did you ever wonder what the real value is of the leads you generate from your trade shows and marketing efforts?  Do you have a sales lead ROI Calculator?  Calculating the tremendous potential value in the sales leads you generate is pretty simple.  It starts with obtaining the sales dollars or better yet the profit from your average sale.  If you want to learn the TRUE value of your leads, calculate the “life time” profit from your average sale.  Then you are ready to plug some numbers into the Sales Lead ROI Calculator.
There are really only three ways to increase the return on the sales leads your company generates:
  1.    Increase your conversion rate 
  2.    Increase the number of leads with the same conversion rate 
  3. Sales Lead ROI_Calculator   Increase both.  (Up Selling is another topic.)

 

Here is how the sales lead ROI Calculator works:  First multiply the number of sales leads you receive times your “conversion rate” to get your Total Sales number.  Then multiply your Total Sales # times your Average Sale in $, or Profit $, for your Total Sales $ value.  It is that simple!

 

The trick then is to increase the number of leads filling your pipeline, or improving your follow-up effectiveness and conversion rate, or both.

 

If you want to see the truly big potential use the “life time” value of a customer instead of Average Sales $, and assume all leads are from potential new customers. These simple formulas can be entered into an Excel spreadsheet and adjusted for your business.  A sales lead ROI Calculator can help you create improved conversion rates and new sales goals, and open your sales team’s eyes to the potential that exists in their sales leads.  Play around with your calculator by entering different lead volumes, conversion rates and the dollar values to forecast revenue and profit potential.  You will be surprised at how improvements of as little as a 2-3% in your conversion rate or lead volumes can have a big impact.

 

Here is another neat trick!  Divide your marketing campaign cost by your number of leads for your average “Cost-per-lead”. Next divide your Average Sale or Average Profit by your “Cost=per-lead” to determine Marketing ROI. Your CEO will love seeing your projection of profit returned for marketing dollars spent.  For example, for every dollar spent we make $10, $50 or more!

 

Do you have your own sales lead ROI Calculator?  If not, give this one a try and let us know what you think.  And here is the shameless plug…You might even want to consider implementing a sales lead management program with Ultimate Lead.  The ROI Calculator is built right in.

 

 

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