Are you a service-based business?
Do you have a sales function?
Are you unsure of how many leads you need to achieve your revenue targets?
If you answered “yes” to any of those questions, then this article is for you.
As we look towards the new financial year, one of the most common questions I get as a digital strategist is:
How many marketing leads do I need to make my sales targets?
See, while most businesses take the time to set new goals and KPIs for the next financial year ahead, many miss the most important step of first determining how exactly they are going to execute them.
It’s all well and good to set a revenue target of $5 million for the year, but if you’re not sure how many marketing qualified leads you need to attract to hit that target, then it’s going to be exceedingly difficult for you to achieve your goal.
This is the very metric you need: how many marketing qualified leads you need to meet your business goal.
In this article, we’re going to work backwards, based on your revenue and sales goals first, to then determine exactly how many leads you need to generate every month to hit your targets and achieve success in the new financial year.
I’ll also share with you our FREE calculator that will help to make this process even easier!
First, let’s gather the metrics that you should already have
Before we can calculate the number of marketing leads you need this year, there are a few figures that you should already know that will help.
These are the metrics you need:
a) How many sales leads you get in an average month
b) How many clients you typically sign up in an average month
c) Your current conversion rate from sales lead to signed client (B divided by A)
d) Your average dollar value per client per year
e) Your current monthly sales revenue
f) Your current annual sales revenue
g) Your targeted annual sales revenue
Stick with me here – you’ll thank me very soon.
Each of these metrics plays an important role in helping you grow your business. If you don’t already have all these figures ready to go, take the time to work out each one before moving on to the next step.
How to determine the exact number of marketing leads you need to succeed
Once you’ve got the metrics above, you can then take the following steps to find your target number for marketing qualified leads in the new financial year:
- Calculate the difference between your current annual revenue and targeted annual revenue.
- Calculate the number of incremental clients you need to land to make up this additional revenue, based on your average dollar value per client per year figure.
- Calculate the exact number of marketing qualified leads that you need to reach your revenue goal, using your conversion rate from sales lead to signed client.
To make this process even easier, check out our FREE calculator!
Simply fill in the required metrics and you’ll receive a download containing the most important number that you need to succeed this financial year.
Once you’ve got your magic number, Ask Marketing can help you to build your tailored digital marketing strategy around your quantifiable business goals.
A digital marketing strategy built for your business
Much like creating a new financial year budget or setting new business goals, you should also look to build a new digital marketing strategy at the start of each financial year.
Now, with your exact marketing leads figure, you can!
The best part is that this number you’ve calculated is based purely on your existing strategy.
This means that once we’ve finalised your new digital strategy around your updated revenue targets and the marketing leads you need to hit them, you will start to see marked improvements in all other areas of your business as well, such as your conversion rate and your average client spend.
Your new digital marketing strategy will also help to:
- Increase leads, empower conversions and minimise sales costs
- Outline an effective content marketing plan
- Provide a guide to ensure you earn positive returns from digital marketing
For more information, check out our 9-Step Digital Marketing Strategy Guide.
Do you need help determining how many marketing leads you need to reach your goals this financial year?
All you have to do is Ask!
At Ask Digital Marketing, we build your complete digital marketing strategy together with you, based around your business objectives and sales targets. We then help you find the right talent and implement the right marketing tools and tactics that you need.
Just get in touch with us and we can discuss your business to help you navigate the digital marketing landscape towards success.
Let’s harness the power of digital marketing strategy today!
For more great marketing content, connect with our company leaders, Alexandra King and Stephanie King, or follow our Ask Marketing LinkedIn page.