“Leads per month” – The most misleading metric in B2B marketing
One of the key goals of Marketing is demand generation and a metric to measure that is leads/month. Correct?
At Lead Walnut, we too had swallowed this theory when we started 2 years ago. However, experience and anecdotal evidence have helped find more meaningful ways of measuring marketing success. And for those B2B marketers out there measuring themselves on leads/month: Forewarned is forearmed.
Take the case of this technology services firm with over a $100 mill in annual revenue.
The Head of marketing shared the metrics tracked over a 9 month period.
# of leads generated – 509
# of sales meetings – 8
# of deals closed – 0
If this company continues marketing operations with these metrics, you know what will eventually happen to their marketing team.
The problem starts with what is measured as a ‘Lead’. “A lead is a prospective customer of a product or service, recognized when an individual or business shows interest and provides contact information.”
So, what’s wrong with this?