You can actually answer that question. It just requires a bit of math. To get started, take a look at data from your previous year and figure out:
Annual Marketing Qualified Leads (MQLs): This is the total number of leads you acquired through your existing marketing efforts: From forms filled out on the website to organic or paid social strategies to tradeshow efforts and beyond. If a lead entered your sales funnel, total it here.
Annual Number of Sales Closed: Of those leads, how many signed a contract with you?
Average Contract Value: Divide your annual revenue by the total number of closed sales above.
Once you have those three numbers, you can figure out exactly how much a single lead is worth to your business.
Let’s say you have:
- 100 MQLs
- 10 closed sales
- $100,000 average contract value
This shows you are currently converting 10% of your leads. Maintain that current rate, and the value of any new lead to your business is $10,000.
Which is when you call us–your world-class B2B integrated marketing agency. Our goal will be to focus on improving two things: 1) Your total number of MQLs and 2) Your lead-to-sales conversion rate.
Boost either one, and your revenue will increase. If you want to know by how much, you can play with the following variables.
Agency-Sourced MQLs: The number of leads attributed directly to the agency’s marketing efforts.
Agency-Boosted Sales Conversion Rate: The percentage increase in the total of leads you converted into actual sales.
Agency Cost: The amount you are spending with us.
In the above example, let’s say we
- Brought you 20 additional annual leads.
- Worked with your sales team to boost your conversion rate by 2% (from 10% to 12%)
In this scenario, we increased the value of every new lead to $14,400. We also brought you 20 of them, providing your organization with $440,000 in additional revenue. Spend anything less than that added value with us, and you made a fantastic investment. It means we are worth it.
Don’t want to do all this math by hand? Use are calculator below.