How much is a referral lead worth to you? If your answer is “Don’t Know,” add yourself to the majority of marketers who gave the same answer in a recent HubSpot poll.
During HubSpot’s webinar about the power of customer evangelism , we asked attendees how much a lead was worth to them. Though we offered a broad range of answer choices—from $100 per lead to more than $10,000 per lead—the majority of respondents said they weren’t sure about the value of their leads. With surprise, we found out that 40 out of the 102 respondents “didn’t know.”
It turns out these results aren’t that surprising. In a June survey, EXHIBITOR magazine found out that “ only 47% of companies track leads generated at trade shows and events throughout the sales cycle .” The survey results also showed that the overwhelming majority of companies don’t measure lead-to-customer conversion rates as part of their ROI reports.
Why is not tracking lead value problematic?
The fastest path to failure is to quit assigning real value to metrics. If the value of a lead is unknown, you won’t be investing in lead generation. No budget is allocated to initiatives whose performance is untrackable. This, in turn, can result in lower marketing performance and slow down the sales cycle.
If you are unsure about your cost per lead, consider reading HubSpot's 2010 State of Inbound Marketing report . That will give you an idea of how much inbound marketing can save you in terms of lead generation. As a reminder, businesses that invest in inbound marketing achieve 60% lower cost per lead than businesses spending on outbound channels.
Originally published Sep 14, 2010 3:00:00 PM, updated October 20 2016