Marketers that effectively track lead source can make informed decisions to drive more sales and are able to report an accurate marketing ROI to senior leaders and clients.
Does the following sound familiar to you?
You’re generating leads, but your bottom line remains flat.
Believe it, or not, most businesses aren’t actually short of leads.
The issue is that traditional marketing teams have long focused on lead quantity over quality.
As a result, have left sales teams overwhelmed with mediocre leads that take up all their time.
Although, by understanding where your most valuable leads are coming from, you can optimise your channels and campaigns to generate more high-quality leads and sales.
For this article, we’ll discuss:
- What lead source means in marketing
- The importance of lead source
- How we’re tracking lead source and attribute revenue
Without further ado, let’s get stuck in!
Hold up, what is lead source?
For the sake of clarity, let’s quickly explain what “lead source” means in marketing.
In its most basic form, a lead source is a channel through which a user interacts with before landing on your website and is essentially the first touchpoint in your sales funnel.
As you can see in the diagram above, organic search inspired the journey so you would define this as your marketing lead source.
The importance of tracking lead source data
Did you know that 79% of marketing leads never convert into sales?
Let’s rephrase that.
Less than a quarter of your leads are failing to convert into opportunities.
Tracking lead source data is crucial as it shows you which marketing channels are driving the most value for your business.
Let’s take a look at an example to demonstrate the importance of lead source.
Below is a diagram that represents two campaigns, one for Facebook and another for Google Paid.
The objective of both campaigns is to drive more leads.
To measure the performance, you rely on Google Analytics goals to monitor your conversions and discover that both channels generated 50 leads each.
You might say that these campaigns were a success?
Well, before you jump to any conclusions, let’s take a look at the same campaigns, but from a revenue perspective.
In the same example, Facebook generated 50 leads, but only managed to convert £3,000 in sales, whereas Google Paid generated a whooping £50,000 in revenue.
So, based on that insight, what campaign would you say was most successful now?
For a long time, marketers have optimised their campaigns based on the volume of leads and cost per lead, instead of focusing on wider business metrics that impact the bottom line.
And, as we’ve seen above, this approach to marketing measurement can do more harm than good.
Without insight into what lead sources are impacting your pipeline, it’s impossible to take your marketing activities to the next level.
How we’re tracking lead source and attributing revenue
Here’s the thing.
Most marketers know that they should be tracking lead source and connecting it with later stage funnel metrics but find it too hard, so resort to basic goal tracking in Google Analytics.
But why is it such a challenge?
More often than not, it’s a disconnect between marketing and sales.
Typically, top of the funnel data is locked away in your marketing analytics, whereas bottom of the funnel data is confined to the CRM, which is generally handled by the sales team.
Even if you had access to your CRM, there is still no way to see which ad, campaign or marketing action started your customers down the sales funnel.
To overcome the limitations of lead source tracking, you need a solution that can:
- Capture all interactions throughout an individual customer journey, such as the first and last-click source.
- Integrate with your CRM along with other data sources, such as Google Analytics and Google ads to gain complete visibility of the conversion path.
- Attribute CRM revenue accurately across the entire customer journey.
Most CRMs allow you to add custom segments, and using a tool like Ruler Analytics, you can automatically add source data to all your leads and opportunities.
Below is how we track marketing lead source:
1. Ruler tracks each anonymous visitor to the website over multiple sessions, traffic sources and keywords.
2. When a visitor converts, data is captured via form, call tracking or live chat on your website.
3. Ruler matches the real user’s details with their marketing touchpoints.
4. The marketing source and conversion data is sent to your CRM. While we’re on the topic, it’s worth mentioning that Ruler Analytics can pass on 60+ marketing variables across multiple touchpoints including first/last click, landing page, keyword data.
5. Ruler’s attribution solution allows you to analyse the impact throughout the entire sales cycle. Once the opportunity is won and closed into revenue, Ruler will pass this data back to your analytics and paid media tools so that you can report on actual revenue.
Connecting Ruler Analytics with your CRM allows you to seamlessly sync data captured from lead generation activity from web forms, phone calls or live chat to enrich your sales pipeline with lead source data.
Another main benefit of using a tool like Ruler Analytics is that you can identify what marketing initiatives are generating not only the most inbound leads but also the most won deals.
Marketers who are responsible for spending money to generate revenue should have a solution in place to see which campaigns and channels are generating the most value.
By combining marketing and sales data, you can take a collaborative approach to understand what constitutes a quality lead, how marketing affects the sales cycle and optimise both campaigns and processes to generate revenue quicker.
Book a demo of Ruler Analytics to bring your CRM and marketing data closer together.