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Calculating Your Goal Values: How Much is a Lead Worth and Why You Should Care

 

Alright, so let’s say you have a website. You work really hard every month to keep your web design updated; write a blog at least twice a week to keep users coming back to your website; do some link-building; interact with other users and companies through social media; oh and yes, be sure tell your friends and family to brag about it!

You do all that for a purpose, don’t you? Ok, so what is the purpose? (Don’t say it is just to get more visits.)

Most likely, you would like your users to do something on your website or click on some particular links that you have strategically placed on the home page. If that is the case (very nice by the way), let’s talk about one of the main things that you’re probably tracking: Your Contact Form.

Why You Should Track GOALS, Such as Your Contact Form:

  • To be able to know how many users are filling it out. You probably get the emails/notifications, but what data can you extract from those users after that? Exactly. Nothing.
  • To get to know those users that did convert a little bit more. Where did they come from? Organic or paid traffic? Were they new users or return users? Were they coming through a mobile devices? So many questions but the answers to those questions lets you understand your users.
  • To know the type of content that engages users. What is the content that is making your users so something? On what landing page did they convert? What does that page have different from the other ones?
  • To know what method works. What landing page or social media network or search traffic is bringing you more money? Having an answer for this last question is key to being able to measure the economic impacts that our online actions are receiving.

In order to answer that last question, you need to assign a monetary value to your goal. Yes, like in the picture below.

Screen shot 2015-03-04 at 3.35.45 PM

 

Why you should have economic values assigned to your GOALS:

  • It’s not because it looks better, which it does, but because your leads should have a value. Is it worth it to keep running that Google Adwords campaign? How much money are you spending vs how much money are you getting from it? Go to your Analytics dashboard, and figure it out!
  • To be able to understand which channels or sources lead to increased conversions at a lower costs so you can change your digital marketing strategy accordingly.
  • Because you and your boss would love to see some monetary value instead of the boring reports with %0, $0 where you are not valuing any of your online actions.
  • To start calculating the economic impact of future actions. From now on your team (especially your boss) will appreciate you even more; you’ll be able to tell them “Hey did you guys know that by changing X,Y and Z on our website, I can predict a revenue uplift of $250 in 30 days”? Nice, right?
  • To be one step closer to become a real ninja digital marketing analyst!

Screen shot 2015-03-05 at 11.27.05 AM

How do you calculate your LEAD GOAL VALUE?

It’s math time! Before you freak out at the thought of having to do some math, and to make things easier for you, our team has created a calculator  (an awesome calculator) where you’ll just have to type some numbers and voila; we’ll calculate the average value of a lead for you! To see magic happening in front of your eyes, click the button below.

leadvalue

What happens when you have $0 as a GOAL VALUE:

  • It makes us very sad because we don’t like to see $0.
  • Even if you can’t come up with any number to insert in the calculator, assign a symbolic value of $1 to some goals and maybe $2 to $5 to other goals that you know are worth more than the previous one. Eventually you’ll figure it out, and at least now you have something to look at.

Without values you aren’t measuring the ROI of your website, and we all know that’s not right. Start doing some real analysis; become a real digital marketing analytics ninja!

How do you normally calculate your goals economic value?

Till next time, my dear ninjas…

Lydia