Competent marketers have learned how to lead effective marketing campaigns that produce results. A component of an effective campaign is measurement and optimization to maximize performance. Two specific metrics are very beneficial to monitor together.
The first metric, CTR (Click Through Rate) is one that most marketers and many non-marketers are familiar with. The CTR measures the percentage of people who clicked on a specific link, ad, or call-to-action within your digital marketing, such as an email, banner ad, or search result. It is used mainly to measure engagement with your media. It can portray your connection with your audience and the value of your content or advertisement.
The other metric is RPL (Revenue per Lead). RPL measures the amount of revenue generated by each lead that comes from a marketing or sales campaign. This is the link between the campaign’s effectiveness and how much it impacts the bottom line.
Revenue per lead helps marketers in many important ways. It can…
- Measure the effectiveness of lead campaigns.
- Help with Resource Allocation – for example – some campaigns may be more/less expensive, and the CTR may be high – but the revenue generated makes up for the high cost.
- Optimize marketing strategy – help you understand which marketing messages are resonating most.
- Help with goal setting and Performance tracking for both marketing and sales team by assisting with the creation of benchmarks.
- Investment justification by creating a tangible metric showing the revenue results of the investment.
- Create alignment between marketing and sales by allowing both teams to work to improve lead quality.
Both metrics are valuable, and marketers often use them together to gain a comprehensive understanding of campaign performance. While RPL provides a clear picture of financial outcomes, CTR offers insights into user behavior and the effectiveness of content and ads in capturing the audience’s attention.
There are many other benchmarks to watch in the sales and marketing world, which will be discussed in future articles.