You know when your boss asks you what your leads goal is, and you don't know how to answer because it's basically just a shot in the dark? Or how about when he asks how your new fangled inbound marketing is going to help you drive leads to the sales organization? It's hard to make the case for inbound to a non-believer when your projections aren't based on math, isn't it?
It's high time to start making your monthly inbound traffic and leads goals based on your business' growth goals. And we're here to tell you how! The good news is that it's ridiculously easy, and with the help of our friend Greg Elwell over at B2B Inbound, we've created an Excel template that you can download and save to make this goal-setting easy as pie every month. With just a few quick inputs, this template will do all the math for you, and you'll be able to know exactly how much traffic and leads your inbound marketing efforts need to drive each month for your sales organization to hit their numbers, and your company to meet its growth goals.
How to Calculate Your Monthly Inbound Traffic and Leads Goals
Step 1: Enter Your Monthly Revenue Goal
This number is how much new monthly revenue your sales team needs to book, which you are going to attribute back to leads generated from inbound marketing.
But wait, what if you're only using inbound marketing to generate new customers? Let's go to the next step!
Step 2: Enter the Percentage of New Revenue Driven From Inbound Marketing
Here, you'll input how much of that new revenue will be driven by inbound marketing. So if you're only generating leads via inbound marketing, well, go ahead and put 100% in there. For the sake of this example, we'll just say you'll drive 80% of your monthly revenue from inbound marketing.
Step 3: Enter Your Average Revenue Per Client
Now, it's time to input your average revenue per new customer. If you don't know this, a simple way to calculate it is by taking your total revenue collected over the past 12 months, and dividing it by the number of customers you have.
And in this step, you'll get your very first calculation -- right there in that orange box. Now you know exactly how many new customers you need your inbound marketing efforts to generate to meet your growth goals (based on the information you've input thus far). Pretty good information to know, eh?
Step 4: Enter Your Lead-to-Customer Conversion Rate
Now, enter your current lead-to-customer conversion rate to determine how many leads you need to actually get those customers. You can also input a goal if you're targeting a better conversion rate to see how that affects the number of leads you need to generate to hit your goals.
If you're not sure how to find your conversion rate, simply take the number of new customers you acquire each month and divide it by the number of leads you generate.
Step 5: Enter Your Visitor-to-Lead Conversion Rate
Finally, let's figure out how much site traffic you'll need to generate! Enter your current visitor-to-lead conversion rate, and this template will deliver the number of visitors you need to bring to your site. Again, you can also enter a target visitor-to-lead conversion rate if you're looking to improve upon this metric (and by extension, get a bit of a traffic reprieve and still meet your goals).