Your IT lead generation strategies need to be sustainable, and you need to have a predictable margin of error which is consistent. Effecting such outcomes is much more difficult than imagining them. Following are tips to help you see the results you seek:
Figure Out What Percentage of Leads You Convert
IT lead generation needs to start from somewhere. If you’ve got a hundred leads every month, do you convert 10? That’s a 10% conversion rate, and it’s pretty high. To know your conversion rate, you’ve got to know how many leads you get on a monthly basis. This requires careful records.
Determine What Profit-Per-Client Averages Are
Do you spend $2,000 to make $2,500? That isn’t great! You need to figure out how much each client costs you and how much each client profits you. Without this information, it’s impossible to figure out what realistic and viable projections will be going forward.
Plug These Numbers into a Formula to Determine Necessary MRR
Monthly Recurring Revenue (MRR) is calculated by multiplying profit per customer by average lead conversion. In this instance, lead conversion assumes a percentage of monthly leads. So if you make $500 per customer after expenses, and have 10 conversions out of 100 leads a month, that’s $5k in profit a month or $60k in expansion a year.
You’re actually making increase around $300k annually at the numbers considered here, but high expenses eat into that profit. Understanding such numbers helps you overcome limitations, identify areas requiring optimization, and help motivate you to ensure their most optimal functionality.
Making Business More Effective
For your IT lead generation, you should establish an MRR, and work to expand that MRR. Determine how much each client profits you and how many monthly prospects you convert. Your business must always continue becoming more profitable to remain viable. Know your MRR to help inform your forward tactics in client conversion.