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Mike Lieberman, CEO and Chief Revenue ScientistThu, Jan 5, 2012 2 min read

Marketing Strategy Has Only One Purpose - Leads

 If anyone tells you that marketing is more of an art than a science, beg to differ. Now that we have goals, we create mathematical connections between marketing tactics and marketing performance. 


Let me show you how. First, we have to back into the amount of leads we need to get us toour business goals. For example, if we want to do an extra $1M in incremental revenue and our average sale is $10,000, then we need 100 new clients in 2012 to get us to our goal. 

Now that we know how many new clients we need, the next data we want to look at is our close rate on new opportunities. To keep it easy, let’s make it 20%. Now we need 500 leads or 42 per month. Over time a new marketing plan will help us create the programs required to get us to that pace. 

Some of the leads will come from the new marketing, but others will come from referrals, direct sales activities, and other existing sources. You need to know how your current sources of leads are performing. What percentage of the 42 leads will come from current sources?  For our discussion, let’s say half.  Now you need 21 new leads per month.

So before we go on, let’s have you do some work. 

Action Item – Take out a piece of paper and do some of the math we did above. What is your revenue goal for 2012? What is your average sale? What is your close ratio? How many leads do you need each month? What other sources are contributing leads? At what pace? When you are done, you should know how many more leads per month you need to reach your 2012 business goals.

Tomorrow, we will look at how to start building a plan to get you those extra leads.

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Mike Lieberman, CEO and Chief Revenue Scientist

Mike is the CEO and Chief Revenue Scientist at Square 2. He is passionate about helping people turn their ordinary businesses into businesses people talk about. For more than 25 years, Mike has been working hand-in-hand with CEOs and marketing and sales executives to help them create strategic revenue growth plans, compelling marketing strategies and remarkable sales processes that shorten the sales cycle and increase close rates.