Successfully measuring lead nurturing campaigns
Analytics. It’s a marketer’s worst nightmare. Having to determine the ROI across your marketing campaigns is a huge challenge. But it is a highly necessary task, too. And if it is done well, it can provide insights that will strengthen future campaigns and generate results for your sales and marketing teams.
So, how do you measure the effectiveness of your nurturing program when a nurturing program is just that: cultivation and development? It’s not lead generation, which provides tangible numbers you can measure. Nurturing campaigns are made up of stuff…less tangible. And so, the challenge begins.
What is the best way to measure success? And how do you know you’ve done a good job and you are moving forward? Read on to learn more.
The 4 KPIs for Nurturing Campaigns
When measuring the success of nurturing campaigns, these are some of the Key Performance Indicators (KPIs) that you should always be tracking to determine campaign effectiveness:
- Click-through rate (CTR) − the percentage of contacts that clicked on at least one email link, in proportion to the total contacts that received the email message. Many companies find more value in the unique CTR, as it weeds out contacts who may have clicked more than one time. Average CTR varies by industry, but you can expect a CTR in the range of 2-5%.
- Unsubscribe and spam rates – unsubscribes are the folks who no longer want to hear from you. It’s best to keep this rate under 1%. You shouldn’t be contacting folks who don’t care. Speaking of people who don’t care, your spam rate should never be more than 0.01%. Segmenting your audience to send contacts relevant, useful information is key to keeping your spam rate at an acceptable level. If this rate gets too high, you can get blacklisted as an organization, which you do not want.
- Conversion rate – although similar to CTR, the conversion rate represents the percentage of contacts who clicked on a link within an email and completed a desired action. For example, your email might contain several links. But, if your call to action, your desired action, was “download our white paper” the percentage of contacts who did just that is your conversion rate. What can you expect in terms of metrics here? Look for conversion rates between 1-3%.
- Sales accepted leads – the whole purpose of nurturing is to generate more qualified and sales-ready leads. Compare the number of leads sales accepted before nurturing and after; there should be a huge difference. This should be your true measurement of success, because it should lead to more sales. You can expect to convert 1-4% of leads.
If time is on your side and you want to go deeper in your analytics of campaign success, other factors can be measured such as time to acquire a customer and cost per customer. It can take years to build up these metrics, since the time to acquire customers can take 6 months, 9 months, or even longer for some companies. It’s a long road, but one worth tracking as you travel it.
If revenue is on your side and you want to try and increase the effectiveness of your digital campaigns while taking some of the pressure off your marketing team, you can also purchase email marketing software. These platforms offer numerous features, such as automatically generated analytics and integration with digital communication channels. Popular and proven providers in 2018 include Campaigner, HubSpot, and MailChimp, to name a few. There are many options out there with differing offerings and pricing, so shop around!
Whew. We know this a lot to consider, but armed with these KPIs, you will be ready to prove and increase the success of your lead nurturing campaigns going forward. Good luck!