Lead Generation Modeling Made Simple

Updated: January 28, 2010

But you've got to do the math. Most of the time it boils down to answering just two questions:

  • How many opportunities are required to get a sale?
  • How many leads do you need to create a new opportunity?

Let's leave out sales cycle length for now, to keep things simple. Let's just look at leads-to-opportunities-to-sales.

To build the model, you need a handful of inputs:

  • Average sales price of a closed deal
  • % of leads that turn into a new sales opportunity
  • % of new sales opportunities that convert into a sale
  • Average cost per lead

If you don't know these figures explicitly, come up with a reasonable but somewhat conservative guess. With this input, you can build a model telling you:

  • How many leads you need
  • How many sales will result (and with what bookings output)
  • How much those sales will cost via a paid lead generation campaign

And with that model, if the inputs are isolated and the lead/opportunity/sales figures are calculated with simple formulas, you can make adjustments to the inputs to see what the sales and/or revenue impact would be if you:

  • Generated more leads
  • Increased the average sales price
  • Increased the % of leads you can close
  • Increased the % of opportunities you can close
Featured Research
  • Executive Brief: Mitigate Avaya risk and future-proof your customer experience

    When Avaya filed for bankruptcy, it ended months of speculation. However, the company’s ongoing financial instability has left many businesses in a precarious position. If you’re concerned about your future with Avaya, don’t wait around to see what long-term options are available to modernize your customer engagement center. more

  • Harnessing the Power of Speech Analytics

    The conversations between your customers and agents contain invaluable insights—if you have the right tools to easily interpret and act on this dialogue. Unfortunately, most organizations waste time manually mining only a subset of customer interaction data, or worse yet, do nothing with it at all. Speech analytics is an incredibly powerful tool for contact center leaders. It easily delivers real-time visibility into the full customer journey and agent responses, which are essential for driving higher customer satisfaction and business success. more

  • Budgeting for BI in 2018

    Is your business ready for Business Intelligence (BI) software? As BI software continues to improve, more businesses are moving to adopt BI sooner rather than later. Before you make that commitment though, it pays to figure out exactly how much money it will cost you to implement. more

  • Gartner Report: Gartner Magic Quadrant for Contact Center Infrastructure, Worldw...

    The 2017 Magic Quadrant provides Gartner’s annual analysis of the contact center infrastructure vendors. The report examines the innovations driving the market and compares vendors based on completeness of vision and ability to execute. more

  • Forrester Report: Artificial Intelligence with the Human Touch

    Artificial intelligence (AI) can’t replicate the human touch, but it can ease your agents’ burden by handling many simple, repetitive requests. A new Forrester Consulting paper offers a look at the strengths and weaknesses of both AI and humans independently, yet how blending them together can give your customers the seamless end-to-end experience they expect. more