August 25, 2023

By The Numbers: Simple Ways to Dramatically Improve Demand Gen ROI

It’s time to stop choosing between quality and quantity, and focus on achieving both. It’s possible to decrease your top-funnel lead costs, generate quality pipeline, and convert at a higher rate. Your bottom line will thank you.

Simple Ways to Dramatically Improve Your ROI

Alright, fellow B2B marketers, let's talk priorities. No surprises here—the number one objective of B2B marketers is still converting leads into customers. And of course, just a few priorities behind it is the goal of reducing acquisition costs. We can all relate.

But here's the interesting part: when you dig into the data, it seems like we're facing a choice between quantity and quality. It's like an either/or situation in our minds, but guess what? It doesn't have to be that way. You can totally have your cake and eat it too. I'll spill the beans on how to make it happen later, I promise. 😉

Imagine if you could achieve both goals simultaneously. How would that impact your bottom line? Even making modest improvements can have a massive effect. Let's walk through a real-life scenario to illustrate this:

The Numbers Game

So, let's say you start with these numbers:

  • Cost-per-Lead: $49
  • Conversion Rate: 3%
  • Lifetime Customer Value: $10,000
  • Total Lead Budget: $5 million

Now, here's the exciting part—let's imagine we make some small but significant improvements to our cost-per-lead and conversion rate:

  • Cost-per-Lead: We'll slice it down by 5% to $46.55
  • Conversion Rate: We'll give it a 5% boost to 3.15%

The Impact on Your Wallet

Here's what those improvements will bring to the table:

  1. More Leads: With the same budget, you'll snag an extra 5,434 leads.
  2. Increased Conversions: Out of those leads, you'll close 326 more deals.
  3. Revenue Growth: These improvements will pump an additional $3,260,000 into your revenue.💰
  4. Better ROI: Brace yourself for a whopping 12.74% improvement in your return on investment. That's a juicy boost!

Smart Strategies for Success

Now that we know the power of compounding efficiencies, it's time to outline some killer strategies to achieve our dual goals. Here are a few nifty tactics to get you started:

  1. Re-negotiate your CPL costs: Trust me, there is plenty of room for it. 
  2. Spice Up Your Gated Content: Sprinkle some interactive content into the mix. It's been proven to amp up conversion rates by a whopping 70%! So, get creative and give your audience something fun to engage with. They'll be more likely to take action.
  3. Find Your Bullseye: Take a closer look at your target market segments and figure out which ones perform the best. When you narrow down your focus, you can allocate your resources wisely, attracting higher quality leads and boosting conversions.
  4. Keep Optimizing: Don't settle for "good enough." Regularly fine-tune your marketing campaigns. Take a look at the results at least every two weeks and make necessary adjustments to keep things running smoothly. Your lead generation vendor partners should be doing this for you.
  5. Personalize and Delight: Add that personal touch to your nurture workflows. Get to know your leads on a deeper level and tailor your messaging to their needs and preferences. When they feel seen and understood, you'll see conversions skyrocket.

Every Little Bit Counts... in a BIG Way

Remember, even small improvements can make a significant impact when it comes to converting leads and cutting down acquisition costs. By aiming for both quantity and quality, you'll unlock the potential for massive growth. So, why settle for just one when you can have the best of both worlds? Embrace the power of compounding efficiencies to witness remarkable improvements in your bottom line.

Happy Quota Hitting!

Karl Van Buren

Co-Founder & CEO, Audyence