Key Performance Indicators You Must Monitor When Buying Leads
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Transcript of Key Performance Indicators You Must Monitor When Buying Leads
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
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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
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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
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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
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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
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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
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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
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Lead
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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
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Lead
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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
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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