Call me a nerd, but after I’ve worked hard on a marketing campaign, almost nothing brings me more joy than seeing all the glorious performance data. As marketers, we are inundated with opportunities for rich, highly-segmented data. And while these metrics are useful for honing our messages and improving engagement, it’s important to keep our eyes on the right numbers when it comes to lead generation.
So what are the right metrics? Studies show that companies often rely on measurements of quantity (such as site visits and email open rates) when in reality, lead generation is all about the quality of your leads for an eventual sale.
For treatment facilities, quality leads can be validated via three simple metrics:
1. The number of acquisitions your content generates
2. The amount of inquiries each tactic prompts
3. The number of clients that reach the verification process via your marketing collateral
Now I know what you’re thinking — it’s difficult to prove how content in the upper-funnel or awareness stage contributes to lower-funnel activities like acquisition; however, tracking your client from initial contact through admission can help you determine the strength of your lead generation tactics.
Consider investing in technology that will allow you to trace your relationships through the entirety of the purchase journey.
For treatment facilities, call tracking software and dynamic number insertion are a must. Knowing which leads are resulting in admissions will help you scale campaigns that are actually bringing in quality leads and providing a sizable return on investment.
Which leads us to….measuring return on investment for lead generation.
How do we determine ROI for treatment facilities?
Four simple calculations will determine whether you’re receiving a positive ROI from your lead generation:
Calculation one: client lifetime value
This is the amount of revenue you acquire from an average client during the time he or she stays at your facility.
This formula is very basic, and more advanced calculations will include other factors such as labor costs of housing a patient.
Calculation two: Allowable cost of acquisition for each customer
This is the amount of money you are willing to spend to acquire a client. Most facilities contribute 10-20% of the client lifetime value toward the cost of client acquisition. If you’re unsure, start in the middle at around 15%.
Calculation three: lead generation budget
Determine what percentage of your total marketing budget will be used for lead generation vs. branding campaigns. A good benchmark is to allocate 10-20% of your total revenue per month toward lead generation since this aligns with your allowable cost of acquisition per customer.
Calculation four: estimated number of acquired clients needed to generate a positive ROI
This calculation divides the lead generation budget by the allowable cost of acquisition per client .
After calculating your return on investment, you can compare campaigns to determine which are the most effective. Marketing tactics with higher conversion rates for the same amount of spend are your winners.