Online database sales lead calculator

Sales Lead Calculator

Many businesses struggle with how to measure the value of their advertising. This tool will help you show advertisers how to evaluate campaign effectiveness based on real dollars earned!

First, let’s define what is and isn’t a “lead.” Not every entrant is a lead. Some just enter to get a prize. We define them as “contacts.” They have value, as some may become interested prospects at some point, but they’re not as valuable as someone who is ready to buy now!

Some promotions generate more leads than others. For example, there will be more entrants interested in trying a new sandwich at a chain of delis than those interested in pursuing a career at a school specializing in nursing. But the value of a new student is far more valuable than someone who wants to buy a sandwich. So how can you figure out your campaign’s success?

The formula is: (TL x CR) X APP X PM / TL

Here’s what it means

Total Number of Qualified Leads generated (TL)

Multiply by Conversion Rate (a percentage) (CR)

This produces the total number of expected sales from this campaign.

Multiply by Average Purchase Price (APP)

This produces the gross revenue generated by the campaign. But now we need to figure out how much it’s worth:

Multiply by your company’s Profit Margin (PM)

Now you know the gross profit expected to be realized. Note: if you subtract your cost of the promotion from this number, you have your net profit for the promotion.

Divide by Total Number of Leads 
(TL).

Now you know the Lead Value (LV), how much each individual lead is worth.

How it works in the real world

A furniture company ran a four week sweepstakes to win a patio furniture set that attracted over 3,000 entries (contacts). Based on the embedded survey questions, the company found:

TL (Total Leads): 689 (homeowners interested in remodeling at least one room, and were interested in meeting with the company’s interior design team)

CR (Conversion Rate): 15% (689*.15=103 expected customers)

APP (Average Purchase Price): $10,000 (103*10,000=$1,033,500)

PM (Profit Margin): 46%

GP (Gross Profit): $475,410 ($1,033,500 * .46 = $475,410)

LV (Lead Value): GP / TL (475,410 / 689) = $690

After adjusting for leads that don’t pan out, they could afford to pay nearly $700 per lead based on immediate value, but there are other considerations.

Lifetime Value: What percentage of the leads become repeat customers? For some businesses (Dentists, for example) the majority of customers return again and again.

Referrals: If new customers refer others to your business, the lead is even more valuable, as one new customer brings in more.

Latent Value: Some leads will convert into customers later, and some contacts may become leads as their interests and situation changes.

If you want to get even more detailed, you can calculate contact value by simply dividing your expected profit by the total number of entries. In this example:

$476,410 / 3000 = $158.47 per entry!

Lead generation is one of the fastest growing areas of marketing and promotion, and once you understand how it works, it’s easy to see why.

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Radio Group Increases Digital Sales 500%

Case Study: Radio Group Increases Digital Sales 500%

Case Study Overview

While radio advertising declines (-3%), and radio digital revenue grows (+18%), one of our radio clients (3 stations in a large market) has increased digital revenue by 500%.

They’ve increased from $400,000 per year to over $2.1 million.

And, they did it without adding clutter. In fact, they increased ratings, grew their database to 9% of the market’s population and funded expansion to include a dedicated digital sales team.

Their growth will continue.

Here’s how we did it:

  1. Developed a strategy and enforced the vision throughout the company.
  2. Invested in the right infrastructure, with controlled, systematic growth.
  3. They didn’t try to do everything, but focused on executing with excellence.
  4. They hired us to help guide audience acquisition and revenue generation.

Are you engaging your audience online, via social media and on location? Is it converting into measurable results? Are you increasing ratings? How is your digital revenue plan?

Want some of this for your brand? Contact us today.

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Advertiser-Centric Promotions

Advertiser-Centric Promotions

It’s no secret that advertisers are changing the way they allocate ad spending, directing more of their budgets to interactive digital media. Radio sales managers have found this a challenge, but should be celebrating!

Borrell & Associates Local Promotions Forecast notes that local marketers love promotions. The report shows that advertisers are spending more and more on contests, promotions, discounts and coupons and

“…there appears to be no turning back… (Advertisers are) collecting more email addresses. In 2012, they spent 81% more on promotions, and should reach $176 BILLION in 2013.”

Find out why radio is the ideal medium to capitalize on this exciting trend. Contact us to learn how we can help you:

  • Proof that ratings respondents are contest players. That’s one of the key reasons that promotions matter to radio programmers.
  • Why building a smart database is a key to your ratings success… and can deliver hundreds of thousands of non-spot revenue! If you’re not doing it yet, let me help you get started!
  • How to get advertisers to pay you to find ratings respondents – and steal listeners from your competition!
  • Tactics that will ensure success of your next promotion before you ever run a single promo on the air!
  • How to generate real non-spot revenue… by generating sales without adding promos!
  • New ways to deliver accountable results including hot leads in real time—directly to your advertisers!
  • New routes to revenue-generation, including promotions that generate real-time hot leads for advertisers… and ring your cash register with each qualified entry.
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How to Deliver Customers with Online Promotions

How to Deliver Customers

Ultimately, your goal is to attract customers for advertisers. It doesn’t matter how many people hear their message. It only matters if you can motivate those interested in the advertiser’s product or service take action.

They’re after long-term, loyal, repeat customers. Your smart database, combined with the power of radio promotion can be your most effective and efficient means of customer acquisition.

When we work with your sales team, we tech you how to deliver measurable, accountable response for advertisers.

Of course, it’s naïve to assume that every consumer is interested in, or has a need for, what you offer. Parents with newborns are prime prospects for Huggies. A single guy without children isn’t exactly a fertile market. The exposure has value, but not as much as that new mom!

That’s why we classify respondents into four categories:

Contacts are entrants who have taken and action, becoming part of your database. They may or may not be interested in your product or brand. They may just be interested in winning a prize. Still, good marketing is never wasted, and brand awareness is an important part of the purchase decision, even if that purchase may be months or years away.

Prospects are contacts likely to purchase at some time. They may or may not be partial to your brand. Our embedded survey questions separate those participating just to win from candidates to become, customers. For example, a landscape design company could identify those who own their own home vs. those who rent. Renters are highly unlikely to become customers. They can then focus their attention on marketing to the homeowners.

Leads are prospects interested enough to seek more information or take action in the near term. The quantity and quality of leads are the criteria by which interactive promotions should be judged. We had a very successful campaign for a Bankruptcy Attorney, returning 175 qualified, high-value leads. Another campaign for Cruise Connections generated almost 25,000 entrants, and resulted in over 8,100 qualified leads! When it comes to leads, quality is more important than quantity (but quantity is a good thing!)

Hot Leads are leads ready to take action right now and are willing to be contacted. Leads that agree to immediate contact are the most valuable of all. They’re practically begging you to become a customer! When we identify a Hot Lead (base on your criteria), an automatic alert is sent to your management team to follow up. Conversion rates skyrocket when prompt action is taken.

It’s important to understand that leads, even Hot Leads, don’t automatically become customers. A strong sales process and a commitment to follow up with prospects are critical. The sooner you respond, the more likely they are to become a customer. This is simply good relationship marketing. Developing relationships with consumers leads to long-term marketing success and is the ultimate culmination of a lead-generating campaign.

Lead generation is often misunderstood. It is both art and science. Used properly, it can be your most valuable weapon in the war for consumer engagement. And it’s a key element of building your sales base to deliver new revenue from new sales categories.

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