What Is Lead Yield?
Killing it in the sales game is all about leads, especially in the industry of sales prospecting services. But the fact is, no two leads are quite the same, and so knowing how exactly to close or how to find the best possible prospects can be tricky - Especially when your leads are basically one big list of names. So how can you figure out what makes one lead better or worse than another? The answer may lie in a simple metric you've been missing; lead yield.
Alright let's break this down - Some leads are inbound from your marketing team, others are outbound and being sourced directly by reps, some might even be from B2B companies and others from B2C. Then once you actually dive in and start getting your hands dirty, you find some are impossible to close and others seem to go as smoothly as you could have ever hoped for. Sound familiar? While the thrill of the close can be exciting and a bit of a step into the unknown, your monetary bottom line doesn't care about excitement, it cares about results. And ticking names off a list in chronological order, or cherry picking leads because they remind you of a deal that closed quickly in the past is really no way to maximize value and make the best use of your time.
Lead yield can actually help companies in a few key ways. The first is by strategically investing in growth by quantifying the ROI for marketing channels. It can also help a company forecast more accurately, since being tuned in to average deal sizes based on dimensions such as industry and marketing channel, means predictions can be based on historical data rather than a one-size-fits-all model. And it can efficiently and effectively prioritize your company's efforts. After all, knowing which types of leads typically drive the most value for your business means you can better prioritize both inbound and outbound leads.
So how does this "lead yield" thing actually work? It's pretty a pretty simple equation - Sales Revenue / # of Leads Generated. Here's a visual example:
So what we take away in this example is that on average, you can forecast that you will generate $101.77 for every lead in your pipeline.
But this is just the start, because lead yield becomes increasingly more valuable and helpful when it is segmented by dimensions like industry and source. So if you can better understand which industry or sources historically generate the highest yielding leads, you can quickly prioritize them higher when you sit with your lead list.
At this point you can have segmented lists by dimension that will allow you an easy reference point to know, for example, that healthcare has a lead yield of $400/lead while eCommerce may only have $200. So healthcare-related leads are prioritized higher, thus increasing your average revenue potential.
The fact is that all the data you need to take your sales game to the next level is right at your fingertips - It's just a matter of knowing the right calculations to maximize its potential.