Calculating Basic “Campaign Generated” Metrics
- Name the campaign.
- Generate leads.
- Sell to leads.
Total # of leads = ?
Total # of sales conversions = ?
Calculate conversion rate: ?
CR = total sales / total leads
Calculate Gross Lead Value: ?
LV = value of sales for campaign / total leads
Calculate net lead value: ?
NLV = (value of sales for campaign * profit %) / total leads
Calculate Lifetime Customer Value: ?
LCV – avg sale $ * avg order frequency/yr * avg # of years client will buy
>>>>> use calculator here – http://straightonsolutions.com/customervalue/
Profitable ROI = paying less for leads than Net Lead value
– assuming that LCV is based on one time sales
If LCV is more than NLV then more can be paid for leads.