Measuring of Sales Conversion Cost per Lead

WinningKPI - Sales - KPI for Measuring of Sales Conversion Cost per Lead posted in category Sales

KPI details:

Infographic for sales conversion. Click to enlarge infographic.

This indicator is for measuring of the overall cost associated with the activities and effort of converting a lead into a customer

More details:

This is inclusive of all costs, such as sales staff time, product samples, travel costs, wining & dining etc. It is in the best interest of the company to minimise the sales conversion cost per lead, whilst maximising the amounts of leads converted.

Therefore, strategic measures can be put in place (e.g. sales staff training), based on the Sales Conversion Cost per Lead KPI.

Formula:

sum of all costs spent on converting a lead into a customer

Total cost of converting leads into customers/ total leads converted

KPI Units: Money

KPI Time Frame: update once a month

Posted by Oana Boteanu | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

Here are comments:

I am a property introducer, selling properties through my website. As a small business (myself) I calculate the Sales Conversion Cost per Lead monthly.
My costs are calculated as following:
Monthly Costs:
website maintenance ( hosting costs etc)
online advertising
paper advertising
other maintance costs (business phone line bill, internet etc)
Total: $
I then divide this total by my number of leads and I get an average cost per lead.
For example, if my total cost is $300 and I got 15 leads that month, my cost will work out as $20 per lead.

Oana Boteanu | September 6, 2012 at 7:41 am

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