Nurturing leads is a process that many companies use when they have a lot of qualified potential customers. It's important to nurture your leads because everyone isn't at the same stage of the buying process. Some customers may just be learning they have a problem, while others may be actively looking for your solution.
By providing customer education, helpful tips and information relevant to your customers' markets, you can establish yourself as an authority in your space while also building relationships with prospects who will see your business as a reliable and capable partner in their success.
It is important to monitor the success of your lead nurturing campaign by evaluating these three metrics: contact rate, response rate, and conversion rate. Let's take a look at each metric and why its important to your business.
Contact Rate is the percentage of all leads that you have contacted. A higher contact rate indicates that you are doing a better job at qualifying potential customers and is an important metric to track when determining what email campaigns work best for your company.
A typical example would be 60% of Leads Contacted, which means 40% weren't because they were unqualified or not interested in purchasing products from your business.
Optimizing for a high contact rate means not wasting time and resources contacting leads that are not qualified for your product or service.
A low contact rate, on the other hand, means you could be missing out on valuable opportunities because of a lack of outreach to potential customers.
Response Rate is the percentage of all contacts that resulted in a response (typically an email). A higher response rate means more people are responding to your emails which often means they're more engaged than those who don't respond at all.
An important thing to note when evaluating this metric is whether the response is positive or negative. If it's negative, you may want to adjust the subject line or message of your email in an attempt to get a more favorable response.
This is because leads that respond positively are often closer to closing a sale than those who do not. A high lead conversion rate means customers are converting into opportunities and sales for your business which ultimately increases revenue.
Lead Conversion Rate is the percentage of all responses that generated an opportunity or sale. A higher conversion rate means more of your leads are getting closer to becoming customers which is invaluable for any business looking to grow and maintain profitability.
When evaluating your Lead Conversion Rate, you'll want to look at a single conversion metric, such as a sale or a signup. By using a consistent metric to evaluate performance, you can assign a dollar value to each conversion to easily calculate the ROI of your outbound campaigns.
A high contact rate means more of your leads are hearing from you and engaging with your content. But make sure in the process, they're not getting annoyed or feeling like their privacy is being violated by too many emails every day! The key to good lead nurturing is making sure that you balance sending those valuable targeted messages on a regular basis without wearing out any one customer's patience.
Examples of how often email campaigns send new messages:
Using this formula can help keep things balanced so there aren't any lapses in communication but also stops customers from becoming overwhelmed by too much outreach. Make sure to classify your messages so you know how often they should fit into your schedule.
An additional, yet essential metric to track when nurturing leads through email automation is revenue per lead. Revenue is the reason we're all in business to begin with, so you want to ensure that all the metrics you evaluate end up pointing to key revenue drivers.
When you monitor how the changes in your messaging affect your revenue, you can notice trends in the successful campaigns that can be turned into repeatable systems. This allows you to not only optimize your nurturing campaigns, but also to increase conversion rates of all your customer-facing messaging.
Nurturing is an ongoing task and requires someone who is reliable to manage it. Having a designated team member ensures that the strategy continues moving forward, while also providing valuable insight into what other offers should be considered for your leads as they progress through their journey toward purchase. It's crucial not only to track key metrics such as contact rate and response rate but also lead conversion rates so you know which tactics are working best with your customers.
Tracking the right metrics when evaluating your lead nurturing campaigns can be the difference between success and failure. Having a grasp on what messaging promotes the most engagement will help you to craft highly effective nurturing campaigns which, in turn, creates better relationships with your customers and keeps them coming back for more.
If you're looking for a way to automate your lead nurturing campaigns, Sendlio can help. We work with companies every day to craft campaigns that send their businesses into the stratosphere!