key performance indicators you must monitor when buying leads
DESCRIPTION
CUnet's Steve Smith, Managing Director of Project Management, presents on the key performance indicators you need to know about. Sure, successful lead buying will ultimately be judged on the cost of each sale that is generated from the campaign, but in many cases determining the cost of each sale may take 15-60 days. During that time you may be wasting thousands of dollars on poor performing lead buying campaigns. This is unacceptable! In this session you will learn about the most important key performance indicators you MUST monitor when buying leads.TRANSCRIPT
KPI ’S YOU CAN’T L IVE WITHOUT
Steve Smith, Managing Director February 2012
Reach, Recruit & Enroll the Right Students
Spring Training
Marketing KPIs 101 – An Example
Total Leads = 100
Cost per lead = $100
Total Lead cost = $10,000
Accepted leads = -
Leads contacted = -
Leads application = -
Leads enrolled = -
Leads started = -
Cost per enroll = -
Marketing KPIs 101 – Scrubbed
Total Leads = 100
Cost per lead = $100
Total Lead cost = $8,000
Accepted leads = 80
Leads contacted = -
Leads application = -
Leads enrolled = -
Leads started = -
Cost per enroll = -
Marketing KPIs 101 – End of Week 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
Contact Rate App Rate Enroll Rate Start Rate
Total Leads = 100
Cost per lead = $100
Total Lead cost = $7,800
Accepted leads = 80
Leads contacted = 24
Leads application = 1
Leads enrolled = 0
Leads started = 0
Cost per enroll = -
Marketing KPIs 101 – End of Week 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
Contact Rate App Rate Enroll Rate Start Rate
Total Leads = 100
Cost per lead = $100
Total Lead cost = $7,800
Accepted leads = 78
Leads contacted = 40
Leads application = 3
Leads enrolled = 2
Leads started = 0
Cost per enroll = $3,900
Marketing KPIs 101 – End of Week 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
Contact Rate App Rate Enroll Rate Start Rate
Total Leads = 100
Cost per lead = $100
Total Lead cost = $7,700
Accepted leads = 77
Leads contacted = 50
Leads application = 9
Leads enrolled = 4
Leads started = 0
Cost per enroll = $1,925
Marketing KPIs 101 – End of Week 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
Contact Rate App Rate Enroll Rate Start Rate
Total Leads = 100
Cost per lead = $100
Total Lead cost = $7,600
Accepted leads = 76
Leads contacted = 52
Leads application = 12
Leads enrolled = 5
Leads started = 3
Cost per enroll = $1,520
Rookie Errors
Common Measurement Mistakes
Not measuring against a static pool
Not measuring against accepted leads
Not allowing data to season
Not assessing true lead cost
Using stale data
1
2
3
4
5
Getting to First Base:
Must Have KPIs
KPI #1: Volume, Cost and Pacing vs. Targets
• Target groupings (e.g. ground nursing programs)
• Volume and pace versus targets and vendor boast
• Cost, pacing versus target budget
• Percentage to target
0
50
100
150
200
250
300
350
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Lead
s
Day
Provider A - Cumulative Volume Provider A - Target Volume Provider A - Monthly Pace
KPI #1: Volume, Cost and Pacing vs. Targets
• Target groupings (e.g. ground nursing programs)
• Volume and pace versus targets and vendor boast
• Cost, pacing versus target budget
• Percentage to target
0
50
100
150
200
250
300
350
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Lead
s
Day
Provider A - Cumulative Volume Provider A - Target Volume Provider A - Monthly Pace
KPI #1: Volume, Cost and Pacing vs. Targets
• Target groupings (e.g. ground nursing programs)
• Volume and pace versus targets and vendor boast
• Cost, pacing versus target budget
• Percentage to target
0
50
100
150
200
250
300
350
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Lead
s
Day
Provider A - Cumulative Volume Provider A - Target Volume Provider A - Monthly Pace
KPI #2: Bad Lead Rates and Reason
DNC 3%
Q & T Call Centers
34%
Duplicates 29%
Geography 6%
Other 4%
Overcap 4%
Validation 16%
Scoring & Verification
4%
Average breakdown of bad inquiries by reason (Q3 2010-Q2 2011)
KPI #3: Conversion Rates
• Based on static pool of accepted leads
• Early and late stage conversion metrics
• E.g. Contact, Transfer, Visited, Application, Enrolled (Closed), Started (Funded), Graduated
Ground
Online
Representative EDU Metrics
Cost spent on a pool of leads divided by the number of conversions
Cost per closed loan, enrollment, start
Ground
Online
KPI #4: Acquisition Costs
Representative EDU Metrics
KPI #5: Operational Metrics
Speed to delivery
Cycle times
Volume vs. historical
Hitting a Double: Segmentation
Hitting a Double: Segmentation
Example Cost / Enrollment
TV
3rd Party Internet Leads
Paid Search – Branded
Paid Search - Unbranded
Ch
ann
el T
ype
$1733
$1325
$436
$1899
Lead source, sub affiliate
Target groups, program, campus, geography, market, level of education, degree type, team, other verticals - credit, LTV
Comparison of offline, aggregator, paid media channels
Hitting a Triple: Optimization
Hitting a Triple: Optimization
Multidimensional analysis
“Heat maps” to identify sweet spots and poor areas
Training for lower-performing teams
Reallocation of budget
Premium pricing strategies
Contact Rate
Akron
Alexandria
Allentown
Anne Arundel
Arlington
Augusta
Cam
pu
s
81.0%
73.7%
55.6%
53.3%
90.0%
60.0%
The World Series:
Marketing Measurements+
The World Series
1 4 7 10 13 16 19 22 25
Age in Weeks
%Enrollments
Advanced volume pacing & conversion forecasting
The ever-elusive ROI number
Next Season: The Future of Data-Driven Marketing
Constraint-Based Optimization
Vendor A 118 23.9% 90 $ 74.73 $ 1,660.67 4 4.5% $ 6,711.40 90
Vendor B 2,189 34.2% 1,441 $ 32.82 $ 863.68 55 3.8% $ 47,289.80 1,580
Vendor C 225 17.6% 185 $ 117.27 $ 1,047.05 21 11.2% $ 21,738.06 200
Vendor D 305 30.3% 213 $ 96.58 $ 1,085.17 19 8.9% $ 20,544.30 230
TOTAL 2,837 26.5% 1,929 $ 49.92 $ 977.62 98 7.1% $ 96,283.57
Vendor A -74% 23 $ 1,718.79 1 30 $ 1,660.67
Vendor B 10% 1,580 $ 51,855.60 60 2,400 $ 863.68
Vendor C 3% 191 $ 22,398.57 21 232 $1,047.05
Vendor D -8% 197 $ 19,026.26 18 282 $1,085.17
TOTAL 3% 1,991 $ 94,999.22 100 2,945 $949.99
Good Lead Volume 62 3%
Total Lead Volume 108 4%
Monthly Cost -$ 1,284.35 -1%
Monthly Enrolls 2 2%
Cost/Enroll -$ 27.62 -3%
Takeaways
•Measure what matters and measure it right
•Segment and optimize for Moneyball results
•The investment will pay off
•You can do it even with a smaller budget
For additional questions:
Steve Smith [email protected] 416-323-1366 ext. 41224