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Calculating lead generation

Posted: Mon Dec 23, 2024 10:05 am
by Akahs47
Establish a specific "① sales amount for products and services" and calculate the "② number of orders" required to achieve it. Based on past performance, etc., calculate the "③ number of negotiations" using the order rate, and further derive the target number of "④ number of leads" from the sales conversion rate. This allows you to calculate the "number of leads you want to acquire" (KPI) required to achieve sales.



For example, set the target number of orders for your product or netherlands phone number example service as 1,000, and the target sales amount as 80 million yen. If the probability of negotiation and winning is 10%, the number of negotiations to be completed is 10,000, and the number of leads required for those negotiations is 100,000. In this way, by calculating backwards from the target number of orders for your product or service, you can clearly set the number of leads.

Calculating the cost per lead
However, it is also important to consider how much you can spend when actually taking measures to acquire leads. Therefore, we will calculate the standard for the cost per lead (Cost Per Lead = CPL).
The cost per lead represents the cost required to acquire one potential customer (lead) through a measure. This cost includes costs related to advertising, marketing activities, sales follow-up, etc. The calculation method for the cost per lead is "cost of lead acquisition measures ÷ number of leads acquired".

For example, if you invest 500,000 yen and acquire 500 leads, your cost per lead will be 1,000 yen. The lower the cost per lead, the more efficient the strategy is, with an approach that can maintain a high acquisition rate. Conversely, if the cost per lead is high, you may need to consider improving your marketing activities or reducing costs.