Businesses that track their leads throughout the sales and marketing funnel can make informed decisions to improve lead quality and enhance sales productivity. In this article, we discuss the benefits and limitations of lead tracking and show you how to connect marketing-generated leads directly to revenue.
As marketers, we’re responsible for driving leads and revenue but don’t always get the credit we deserve.
In fact, 43% of businesses find proving the ROI of their marketing activities one of their biggest challenges.
Well, it’s time to make a change.
In this article, I’m going to walk you through the importance of lead tracking and introduce a solution that can help you connect the dots between marketing-generated leads and sales revenue.
What is Lead Tracking?
Most people are already familiar with the concept of lead tracking, but for the sake of clarity, let’s quickly take a look at how it works.
As the name suggests, lead tracking is the process that allows businesses to monitor lead activity along the path-to-sale.
It allows you to manage and track leads across all marketing channels so that you can demonstrate your impact on the sales pipeline. More importantly, lead tracking helps you make smarter decisions about where to invest your marketing budget.
The Importance of Lead Tracking
Simply put, lead tracking allows sales and marketing to seamlessly work together so that marketing can drive more qualified leads, and sales can focus on closing deals.
By combining marketing and sales data, you can take a collaborative approach to understand what constitutes a high-quality lead, how marketing impacts the sales cycle and allocate budget into the areas that have the potential to drive more revenue.
Let’s take a look at some of the core benefits of effective lead tracking.
1. Data to improve your lead generation techniques
With effective lead tracking, you can reveal which lead generation techniques are having the best impact on your ROI and allocate your budget accordingly.
2. Create personalised experiences
Lead tracking allows you to harness data about your leads to improve customer understanding, allowing sales to create better-personalised experiences.
3. Produce data-driven strategies
Gathering valuable information on each lead can help you tailor your buying cycle to result in a seamless sales process. All the data tracked from won and lost opportunities are invaluable for creating marketing and engagement strategies based on facts and data.
The Challenges To Lead Tracking
59% of marketers identified generating high-quality leads to be their biggest B2B lead generation challenge.
Let’s take a look at some of the limitations of lead tracking in more detail:
Lack of offline capabilities
For a long time, the best solution marketers had for tracking leads and revenue was Google Analytics goals.
And, rightly so.
Google Analytics does a fantastic job of tracking your on-site conversions and can attribute leads back to the marketing campaigns and channels that generated them.
Although the issue is that not many businesses convert all of their leads “online”.
Particularly for those in the service industry and businesses that sell high-value products (i.e. properties, automobiles). Typically, customers will choose to enquire over the phone and will convert offline.
It’s because of this why offline leads are often overlooked or deliberately ignored as marketers find it too difficult to attribute them back to the source that they originated from, which greatly undervalues the impact marketing is having on lead generation and revenue.
Marketing channels produce different revenues
It’s believed that B2B marketing organisations use more than ten different channels to promote their services and products.
For us marketers, it’s important that we focus on the channels and campaigns that are most likely to produce a wealthy return on investment so that we can justify our efforts and secure more advertising coin.
Marketing channels such as PPC and SEO tend to generate higher-quality leads because they target bottom-of-the-funnel users who are likely ready to complete a purchase.
Whereas channels such as Facebook and LinkedIn ads produce a lower ROI, as marketers typically use these social advertising channels to drive awareness and target audiences higher up the funnel who have no interest in making a purchase – at least not yet.
As we’ve already discussed, tools like Google Analytics will use goals to measure leads and will attribute them back to the channels they originated from.
So, when it comes to tracking your leads, it’s important to remember that channels, campaigns and ads all produce different revenue amounts.
Just because your Google Analytics suggests that your Facebook campaign is generating the most “leads” doesn’t automatically mean that it’s got the highest ROI.
Disconnect between marketing and sales
In a recent survey, 56% of salespeople and marketers admitted that their teams were siloed.
Sales and marketing alignment is one of the most crucial factors in creating a scalable, repeatable revenue machine.
Despite sharing the same objectives to drive more money into the business, sales and marketing teams still consider themselves as separate entities.
Most marketers believe that they deserve the credit for closed business because, without their advertising efforts, there are no leads for the sales team to convert into revenue.
Whereas sales would argue that they deserve the credit because without them, the leads that marketing drive would simply not convert.
It’s no surprise sales and marketing has its differences.
Both departments navigate different roles within the business, which has led to a clear division of processes and technologies.
Although, with successful sales and marketing alignment, both teams gain access to data that can help them increase revenue, shorten sales cycles and improve forecast accuracy.
Integrating your CRM software with your sales and marketing tools is a great opportunity to bridge the gap and end this war once and for all.
Both teams can strategise together towards common goals, and as a result, improve lead quality and increase sales productivity.
(We’ll go into this in more detail shortly!)
Lead Tracking Alone Isn’t Enough
Taking everything we have discussed into consideration, it’s clear that simple lead tracking is no longer enough.
Before I go any further, you must understand, I’m not saying the practice of generating leads is wrong.
Leads are crucial to growing your business.
Although you must remember that leads are not actual sales.
Marketers are being held increasingly accountable for the need to connect their efforts with revenue growth.
In fact, increasing quality leads is the top priority for 68% of B2B professionals, followed by increasing lead volume (at 55%.)
So, if your team is using leads to measure the performance of your marketing, then you need to reevaluate your strategy.
Lead and Revenue Tracking with Ruler Analytics
To unlock the data you need to effectively track you leads and justify the success of your marketing activies, you need a solution that can:
1. Captures all the interactions throughout an individual customer journey.
2. Integrates with your CRM and marketing tools (i.e Google Analytics, Google Ads) so that you can gain complete visibility of the conversion path.
Ruler Analytics is an attribution and analytics platform built by marketers for marketers and allows you to connect marketing-generated leads directly to revenue.
It collects data about the different marketing campaigns each lead engaged with, and it passes that data on to your CRM so sales teams get a complete picture of what leads are interested in.
Here’s how it works
1. Ruler Analytics identifies your website users and tracks their unique journey over multiple touchpoints.
2. Once an anonymous visitor converts into a lead, Ruler Analytics matches the user’s details to their marketing touchpoints and sends all this data to your CRM.
3. This populates the sales team’s system with conversion and marketing data, which helps them develop an understanding of each prospect before making contact.
4. Whenever a lead closes into revenue, the sales data is sent back into the Ruler Analytics dashboard. This allows marketing teams to optimise their marketing based on real revenue and not just conversions.
Ruler Analytics also integrates with Facebook, Google Analytics and Ads so that you can track your leads and measure marketing ROI straight from your favourite reporting tools.
So, What Have We Learned?
Previously, leads were an acceptable way of measuring the performance of your marketing, when sales and marketing teams sat in silos, divided by language, goals systems and processes.
But, to simply focus on leads, means you’re misguided.
Businesses that track their leads throughout the sales and marketing funnel are able to make informed decisions based on real revenue and report an accurate marketing ROI to senior leaders and clients.
How do you keep track of sales leads?
I’d love to hear!
Feel free to reach out using my social icons below, or alternatively, book a call with one of our lead tracking experts so that you can take your marketing measurmeent to the next level.