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4 KPIs of Lead Nurturing Success in Direct Response Ads

Updated: Nov 24, 2022



All marketers know that leads are the number one metric for marketing campaign success. 67% of companies in the U.S. consider lead generation the sole benchmark to determine whether their advertising strategies are effective. Leads are especially critical for gauging the effectiveness of TV or radio commercials in direct response ad campaigns. They dictate whether dollars spent on advertisements will turn a profit or result in a deficit. Since direct response ads’ primary goal is to generate leads and drive them through the sales funnel, businesses using this marketing technique must pay close attention to this data.


But what happens between the first phone call and the sales close? How does a prospect turn into a paying and trusted customer? Here, lead nurturing plays a significant role.


Lead nurturing is the process of forging solid and healthy relationships with potential customers. The goal is to guide them through the purchasing decision and supply them with all the information they need to close a deal. There are many ways to nurture and follow up on leads: ad retargeting and reinforcement, direct mail updates, or constant one-on-one communication. To know what strategies are the most effective, you need to keep four key performance indicators (KPIs) in mind.


Marketing Qualified Leads From Direct Response Campaigns


Marketing Qualified Leads (MQLs), also known as warm sales leads, are prospects who have exhibited an interest in your business. These leads are willing to engage with your marketing team. They have made initial contact with you – through a newsletter sign-up, a phone call, or other similar methods – and are open to keeping the lines of communication flowing. The more effective your direct response marketing campaign, the higher the number of MQLs.

Responses can include ad clicks, page likes, or even simple views in traditional marketing. Since no calls-to-action are specified, it takes more thorough data gathering and in-depth analysis to single out MQLs generated by a specific ad campaign. Direct response marketing campaigns make it easier for businesses to identify warm leads. These ads prompt audiences to react a certain way, making the response rate more measurable and transparent. When a prospect picks up a phone to call you after seeing your television ad or hearing your radio commercial, the marketing team can immediately qualify them as a quality MQL.


Conversion Rate Of Direct Response Warm Leads To Sales Qualified Leads


When assessing leads gathered from direct response marketing campaigns, it is critical to remember that MQLs are not the be-all and end-all of success. MQLs have expressed curiosity, but they may not yet be ready to close a deal or engage with the sales team. The next crucial KPI is the number of sales-qualified leads or SQLs.

SQLs or hot leads are prospects on the verge of buying your product or service; they have received enough information from your marketing team to be confident enough to consider purchasing. Popular statistics show that companies with successful lead nurturing efforts get 50% more SQLs at a 33% lower cost. It means that you consume less time and resources to convert warm leads into hot leads.


When looking at SQLs, it is important to note how many SQLs were unnurtured and how many were nurtured from MQLs. The number of SQLs converted from MQLs is a great way to assess your lead nurturing efforts’ success. At the same time, unnurtured SQLs speak to the quality and effectiveness of your ad campaigns. Since direct response ads are targeted and intended to drive the most number of leads, there’s a high likelihood of getting sales-ready prospects from the get-go. On the other hand, if your MQLs keep increasing but your SQLs fall stagnant, you may need to recalibrate your lead nurturing strategies.


Time From Direct Response Lead Generation To Customer Conversion


Lead nurturing efforts must not only be effective; they also need to be efficient. The longer it takes for prospects to complete the sales cycle, the more resources and money you exhaust. Suppose it takes you one week to follow up and close a deal with a potential customer who calls to inquire about your business. It is imperative to figure out what part of your lead nurturing strategy finally drove the prospect to a decision. That way, the next time around, you can reduce the conversion period by half and allocate more time and resources to following other leads.

Direct response advertisements evoke a sense of urgency from their audience; that is what motivates them to get in touch in the first place. Ideally, prospects who call you about discounts, limited-time offers, and special programs should be more primed to close a deal immediately. If you notice that your conversion time drags on for too long, it means that your engagement post-initial contact is not as fruitful as it should be.


Customer Lifetime Value For Leads Generated From Direct Response Ads


As the name suggests, the customer lifetime value (CLV) pertains to how much revenue you average from every one customer your direct response campaigns reach. Think of it as purchasing a washing machine versus visiting a laundromat. You spend very little every time you visit the laundromat, but the total costs accumulate in the long run. On the other hand, a washing machine will cost more on initial purchase, but the expense diminishes every time you use it. CLV works similarly.


A successful direct response marketing and lead nurturing campaign are more cost-effective in that they generate a more considerable revenue per lead. It results in a better return for every dollar you shell out for ad spending and securing a prospect. Put simply, it gives you a more significant return on investment (A successful direct response marketing and lead nurturing campaign are more cost-effective in that they generate a more considerable revenue per lead. It results in a better return for every dollar you shell out for ad spending and securing a prospect. Put simply, it gives you a more significant return on investment (ROI). Research shows that nurtured leads make 47% larger sales than unnurtured leads. It is achieved when customers become well-acquainted with your business and are kept in the loop of exclusive offers and special programs. Thus, they are more inclined to continue patronizing your business.


Wrapping Up


Direct response marketing is an excellent way of getting volume leads at the lowest costs. Still, you must follow up on prospects with strong lead nurturing strategies to convert quality leads into life-long customers. Using the four KPIs above, you can learn how to evaluate your efforts, gauge their level of success, and adapt accordingly to improve your blueprint for closing sales and generating revenue.

If you are looking for no-cost direct response TV and radio ads that guarantee quality calls and leads, contact us at 888-373-8463. You may also leave us a message, and we’ll get back to you soon!

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