How to Evaluate and Optimize New Lead Generation Paid Media Campaigns

This document is for Media Buyers, Brand Marketing Directors, and Brand Owners looking to scale cold traffic new lead generation media campaigns based on customer lifetime value and ROI.

Why You Need This

New leads that become high value customers is the lifeblood of any scaling, growing business.  However, finding cold traffic leads that end up being valuable is one of the toughest challenges in paid media optimization.

Without marketing attribution that gives credit to the correct marketing channel for lead generation, you are making decisions based on questionable ad platform data that takes credit when it is not deserved, mixes new leads with already acquired leads, and ignores lifetime value (https://www.wickedreports.com/wicked-reports-vs-facebook-pixel).

Acting on this questionable data can cause issues with scaling your new lead gen profitably, and allow your competitors to buy up all the good leads from cold traffic before you can.

Common Marketing Optimization Scenarios that New Lead ROI Reporting can Solve

  • Unable to connect customer lifetime value to traffic sources and campaigns that converted the cold traffic at the top of your funnel.
  • Scaling cold traffic lead gen turns into a lot of leads, but they don't seem to buy enough to justify the cost.
  • You are focused on repeat buyers, subscription recurring sales via your monthly ecom boxes, or membership course subscription sales and the cost to acquire new customers is more than the 1st purchase or subscription trial month.
  • You are running cold traffic to opt-in offers for free shipping, discounted products, or buy one get one deals.  You need to know if this strategy is profitable (it can be wildly profitable over time, fyi).

How to use the ROI report for New Lead Attribution

The ROI report uses the attribution model you select to attribute revenue to 1 or more specific conversions points in your marketing funnel.  It is a huge edge to measure your marketing campaign goal with the correct marketing attribution model.

To scale cold traffic new lead generation campaigns, the goal is to find new leads that are worth more than they cost to acquire, at as fast of a conversion period as possible, for the highest ROI.

roi-report-attribution-model-filter-new-lead-selectedFor new lead attribution and ROI, you will want to select "New Lead ROI".  This attributes all revenue to the marketing click that created a new lead conversion.

The new lead conversion is automatically detected by Wicked Reports using our CRM integration and our click tracking scripts.

The sales conversions are automatically detected by Wicked Reports using our Order integrations. This includes recurring subscriptions and all orders that do not occur online - as long as they are in the order system integrated, we can detect and attribute the revenue back to the marketing click that generated the lead.

 

For more information on the New Lead Attribution Model, https://help.wickedreports.com/new-lead-first-optin-roi .

Select any other filters (filter options discussed below) and click apply to see the attributed revenue for all new leads generated in the time period selected.

The ROI summary fields of Sales, Attributed ROI, Attribution Coverage, Wicked Attributed Revenue, and Unattributed Revenue are all calculated specifically based on the attribution model selected:

roi-report-new-lead-roi-summary

These values are all using the new leads generated during the time frame for the marketing campaigns being evaluated against the revenue the new leads have generated.

The sales, revenue, and ROI values for each marketing campaign are listed in the ROI report

roi-report-new-lead-roi-fields

Read https://help.wickedreports.com/how-to-use-the-roi-report for in-depth information on all the filters and fields of the ROI report.

In the report above, for the Facebook campaigns "Prospecting - Conversions" and "Prospecting Open Targeting - Conversions", the high ROI indicates that cold traffic new leads from those campaigns are turning into high value customers over time.  Ad spend can be increased.

For the Google campaign "Search US Prospecting DSA", ROI is 92%, good, but relative to the other ROI values, it is not optimal and I would not increase ad spend on this campaign.

For the Google campaign "Search Prospecting Lobster", 144% ROI, ad spend could be increased. roi-report-google-optimizer-icon

To manage Google ad budget on qualified campaigns, the eyeball icon appears to the left of the campaign name.  Clicking on the eyeball allows you to manage the ad budget from Wicked Reports for Google.

wgco-campaign-ad-spend-editor

 

Google search campaign budget optimization starts with impression share.  As you slide the daily budget to the right, you will see the potential impact to this campaign's revenue and ROI.

Make the adjustments, apply changes, and the updated targets and budget will be pushed to your Google ad campaign for immediate adjustment.

 

 

Marketing Optimization Tips

Cold traffic lead generation campaigns often take time to show ROI, because the new leads take time to buy.  Here is how to use time to your advantage.

smaller captain wicked pointing to right

 

Use the Sales Velocity report on predictive behaviors to find how long your average Lead to 1st Sale conversion time. Double this time period, it is how long you need to give a cold traffic marketing campaign to show ROI.

 

captain wicked pointing to right

 

 

Use the New Lead Cohort report to determine how long it takes New Leads to become profitable.  This gives you a benchmark for the impact of customer lifetime value on the new leads you are generating.

 

 

If the goal of your marketing campaign is cold traffic new lead generation at profitable ROI, and the campaign has been running for enough time based on the previous 2 marketing optimization tips, you can make an informed decision:

  • SCALE:  ROI is profitable, increment budget up.
  • CHILL: ROI is acceptable but not wildly profitable. 
  • CHILL: ROI is so-so but there has not been enough time for the leads to buy based on the analysis already done.
  • CHILL: ROI is bad but there has not been enough time for the leads to buy based on the analysis already done.
  • KILL: ROI is not acceptable, campaign's goal was cold traffic new leads that eventually buy, and the campaign has run for an acceptable amount of time.
  • UNKNOWN:  Goal of marketing campaign was not to find new leads.  Choose another attribution model and re-assess.
  • UNKNOWN:  You don't see many leads tracked and fear there is something off in your tracking. See troubleshooting section below.
  • UNKNOWN: You have lead tracking setup in your CRM prior to Wicked Reports and want to see what this attribution model would tell you to do.  Back load the historical data!

Troubleshooting