Every supplier today is under pressure for prices and most of RFP insist on choices made on best prices. In our business, it is about price per address and price per agent per day or per hour. With the increasing power of procurement, in our very niche business, our customers are forced to ask around for several offers and most of the time our offer is hardly comparable.
Recently, an ex-customer decided to work with a Romanian supplier to call Wallonia. It was much cheaper than our prices but what about the results? Nothing, no leads came out of this campaign! Unfortunately the initial costs didn’t calculate the price per lead.
The most important Key Performance Indicators (KPI) in our business are:
Leads acceptance ratio: Percentage of leads that the salesreps accept to consider as leads. This means the supplier and his agents need a good understanding of the customers’ business.
Price per lead: You add all the costs linked to a lead generation campaign and you divide it by the quantity of accepted leads. You finally have the price per lead. Most of the time, our database is more expensive and our daily price is high but we generate more leads in the same period of time and we are finally much cheaper per lead.
Business generated thanks to our leads: You have to trace your lead generation campaign in order to measure what is the amount of contracts that you initiated. It can take 24 months to close the loop but it is worthwhile tracing it because finally that is the ultimate goal!
In most business-to-business activity focusing on Large Enterprises, the marketing effort is to generate maximum 50 leads per year maybe fewer and then the marketing department is already very much into ‘generating qualitative leads for the salesreps’. If you are wondering how to make marketing work closer to the sales division, it is easy: just put variable fee for marketing based on their impact on sales. What do I mean? Put on their shoulders some pipeline objectives that will be necessary to achieve your objectives.