How to Calculate Lead Deficit? Anti-Crisis Marketing Principles
A difficult, crisis-ridden time has arrived, when it is difficult to predict the future and build long-term strategies. Alarming phenomena in the economy do not subside, instead, frightening forecasts for the fall, winter and next year are increasingly heard. But, despite this, it is precisely in such conditions that careful planning and analysis of indicators become critically important for business.
Today we invite you to learn how to calculate an index that is essential for developing an effective marketing strategy - we are talking about the lead deficit.
Indicators required for calculation
Lead Deficit is the number of leads a business needs to generate uruguay phone number data to meet its sales quota or plan. Calculating this indicator involves determining the number of target customers that need to be attracted solely through active lead generation . Consequently, the current customer base is excluded from the focus of attention.
So, what metrics are needed to calculate lead deficit?
1. Lead to Sales Conversion Rate. Calculate the average sales department rate for the last year/reporting period.
2. Average Order Size . This is not the average purchase size, which is practically useless in assessing the performance of an ordinary salesperson. The average order size indicator is calculated as follows: look at how many orders were closed during the reporting period. Then divide the total sales for the same period by the number of closed orders, and you get AOZ.
3. Profit from existing customers. Calculate the monetary value of deals closed in previous years (or reporting periods), add the resulting amounts and divide the result by the number of reporting periods/years. Then divide the resulting number by the average order value - and you will get the average number of deals made by current customers.
4. Number of incoming leads. Using the information in your CRM system, calculate how many leads you collected monthly over the last reporting period/year. Choose the minimum value — you will use it to calculate the lead deficit.
Why minimal? It's very simple - don't calculate the average value or assume that the number of leads will increase in the coming period. This will give you more accurate results.