How do I measure the ROI of lead generation?

Measure return by following the money: spend, leads, qualified leads, customers and revenue. The key figures are cost per lead, cost per qualified lead, cost per customer and return on ad spend, ideally broken down by channel and campaign.

This requires clean tracking and honest feedback from the sales team. Without knowing which leads became customers, you only see activity, not results.

Compare returns over a long enough period to cover your sales cycle. A campaign that looks weak after two weeks may be your best performer after two months.

Key figures to track:

• Cost per lead: spend divided by total leads
• Cost per qualified lead: spend divided by sales-qualified leads
• Conversion rate: leads that become customers
• Cost per customer: total spend divided by new customers
• Return on ad spend: revenue divided by marketing spend
• Payback period: how long to recover acquisition cost

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