This document discusses the importance of measuring lead quality using ROI metrics for B2B marketers. It recommends tracking contact rates, quote rates, and monthly ROI to evaluate lead performance. Calculating customer lifetime value is also important to consider long-term profit from customers over years. Not all leads are equal - high quality leads from reputable sources will be actively seeking services, verified and targeted prospects. Measuring leads helps optimize budgets and improve sales conversion.

1. ®
InsideUP
Optimal Lead Quality
Why B2B Marketers Need to
Use ROI Metrics to Ensure
B2B White Paper Series
© 2017 InsideUp. All Rights Reserved.

2. What’s Inside
1. Background
2. Measuring Increases Closure Rates
3. Using Customer Lifetime Value to Plan Your
Lead Generation Budget
4. Quality Counts
5. Conclusion
Table of Content
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3. Background1.
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How do your leads measure up? Knowing the answer to that question is key to
getting the best results. Judging any lead source without using the appropriate metrics
can be very counterproductive.
In a recent study, 70 percent of B2B organizations that rated their marketing as highly
effective said that they regularly track and measure lead quality based on revenue from
the initial sale as well as total customer revenue over time.
Clearly, tracking lead quality with detailed financial metrics should be a top priority for
B2B companies.
Nonetheless, 31 percent of small businesses admitted having room for improvement in
their basic ability to identify their most effective lead acquisition strategies.
Leads from any source should never be evaluated subjectively. One of the best ways to
get an accurate picture of how leads from various sources perform is to create a
comparison table based on transaction data and campaign results. Include revenue,
market share and profits, volume, conversion of leads, and direct response metrics.
Rapidly growing companies are more likely to use conversion rate and financial
performance metrics than companies reporting slower growth, the same study found.
ROI users are also 68 percent more likely to surpass their competition, compared with
only 48 percent of marketers who use conventional methods to determine the success
of their marketing efforts.
1
Executive Summary
51%
63%
42%
34%
30%
59%
71%
37%
26%
21%
Revenue generated
from initial sale
1
2010 Lenskold Group / emedia Lead Generation Marketing ROI Study
Lead Quality Basis
Total customer
revenue over time
Total customer
revenue over time
Sales
acceptance
Sales conversion rates
ROI Traditional
Practices to Measure and Track Marketing Performance
ROI Metrics Users vs.
Traditional Metrics
Users

4. 40%
10%
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Measuring Increases Closure Rates2.
A study by the Kellogg School of Management found that companies who do not
measure their results from sales leads may actually experience lower closure rates.
Measuring quantifiable data is the only way to effectively avoid such a scenario.
The three most reliable, universal metrics are:
1. – This number applies to leads that demonstrated
interest by giving valid contact information. The benchmark for this can
be anywhere between 40% and 70%. This is the percentage of leads
that respond to your call or email (even to say they are not interested).
2. Determine what percent of your leads ask for a quote.
This number should be between 10% and 40%.
3. – Return on investment (ROI) should be
your most significant metric to help you determine precisely how much
to spend for each lead. Calculate how long it will take to break even
based on how many accounts you sign up.
Reaching your ROI within 12 months is considered a good time frame, and can be
achieved with high quality leads along with effective sales and nurturing practices.
Be sure to keep your ROI expectations reasonable, however; don't expect a $1000
lead spend to turn a $10,000 profit within six months.
Contact Rate
Quote Rate –
Monthly Return on Revenue
Tangible ROI Metrics Make the Difference
Benchmarks for Contact Rate and Quote Rate
Gave Valid
Contact Info
Requested
Quote
High %
Low %
75 —
50 —
25 —
0 —
70%
40%

5. When determining ROI for purchased leads, be sure to factor in Customer
Lifetime Value (CLV).
TP: Total Annual Profit (Total Sales – Cost)
TC: Total Customers
CL: Average Customer Life (in years)*
Your customers’repeat purchases can translate into several
thousands of dollars in additional revenue over the years of your business
relationship. Here’s how it works:
Say your average sale per customer results in $250 in profit in the first year. So you
purchase 10 leads at $25 each. Assuming a ten percent conversion rate, you'll acquire
one new customer. At this point you might say that you've just broken even. But you
haven't yet calculated the long-term profits you will gain from that one lead.
CLV reflects the total value of a customer to your company over the term of their
relationship with you. The CLV model can be broken down as a function of these
three factors:
*Although CLV could measure the customer's value over his or her lifetime, most marketers
use three years (based on considerations surrounding product life cycle, customer life cycle,
and profit calculations).
Using these elements, customer lifetime value is calculated this way:
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Using Customer Lifetime Value to
Plan Your Lead Generation Budget
3.
(Cont.)
CLVX
Total Annual Profit
Average Customer Life
TP:
CL:
(Total Sales – Cost)
(in years)

6. When you calculate the CLV of a single customer, you can clearly see the true
value of your investment in leads. That is why even companies whose
average sale is around $20 typically spend much more than that in
marketing dollars to acquire each customer. These marketers look beyond
the initial buying cycle, knowing that their average customer will spend
thousands of dollars with them over a period of years.
Once you’ve gained a thorough understanding of the cost to value
relationship of leads, you'll find that complementing your own marketing
efforts with quality leads from a lead generation company can be a very
cost-effective means of reaching your sales goals.
Using Customer Lifetime Value to
Plan Your Lead Generation Budget (cont.)
3.
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Consider the Whole Equation
Components of CLV are Interconnected
For optimal revenue
opportunities per customer,
the initial sale is just the
beginning of the
relationship for
long-lasting value.
On-going
Sales
Referrals and
Engagement
Initial
Sales
CLV

7. Not All Leads are Active Leads
When purchasing leads, keep in mind the criteria that define a lead.
1. Actively Seeking Your Services
2. Verified Contactable at the Time of Your Purchase
3. Highly Targeted and Matched to Your Busines
4. Rated by a Detailed Scoring System –
lead-to-sale ratio average profit margin
Many“lead”
suppliers are really just selling you a list of contacts at businesses, which may or may
not be interested in your services.
A true lead will be:
– Not just a name on a list, but a
person who has demonstrated interest in your services. A warm
lead will have indicated by their actions that they are highly
motivated and ready to buy.
– List
providers typically update lists on a monthly or semi-annual basis,
leaving verification up to you. Quality lead suppliers provide data
that has been 1) submitted by the source and 2) verified.
s – List providers
do not interact with both the buyer and the service provider, which
means they cannot target prospects on parameters unique to your
business.
True leads are analyzed
based on web page activity, frequency of visits, and accuracy of
information submitted.
After weighing such factors as and
for each sale, many marketers have found that higher priced leads have
appreciably higher performance results.
A good lead generation company can specifically tailor the lead acquisition
process to the needs of your business so you can be assured of receiving
quality leads; leads who are actively seeking the services you provide—leads
who will most likely convert to longtime, valuable customers.
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Quality Counts4.

8. About InsideUp
High-Quality Leads
Easy to Set Up
Optimized Lead Generation
Pay-Per-LeadQualified Business Network
Real-time Delivery
Live Phone Transfer
Online Access
- We use only high
quality business traffic and media
partners.
- No campaigns to
manage. Account setup takes just a few
minutes.
- Using
proprietary technology and lead scoring
algorithms.
- You only pay for
qualified leads. No set-up and no
monthly fees.
- Leverage
our community of buyers who actively
use our service when making business
purchases.
- Leads posted to
your CRM, delivered by email or
accessed from dashboard for quick sales
conversion.
- Free automated
live transfer of leads to your sales
number.
- View analytics, reports,
billing, credits, leads and more.
InsideUp was founded to solve a critical
market need – to help firms effortlessly
connect with a community of businesses
actively looking to purchase services.
What We Provide
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(800) 910-7638
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As the leading platform to acquire new business customers, InsideUp has
pioneered new ways of connecting service providers with buyers.
Our unique and proprietary platform, designed specifically for business services
firms, allows our customers to be matched with and provide custom quotes to
targeted, ready-to-buy decision makers. InsideUp also offers a lead clearinghouse,
which lets lead buyers pre-select the type of leads they wish to purchase
5.

9. © Copyright 2017 InsideUp, Inc. All Rights Reserved
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