Indicators that determine the effectiveness of lead generation are:
- ratio of the number of sales to the volume of potential transactions;
- the amortization rate of the advertising costs;
- the cost of Lead.
The most important factors influencing the key performance indicators are the quality of the executives and the professionalism of the sales managers; in addition - the level of competitiveness of the product promoted, the cost of goods or services and the general situation in the market segment.
The Romi indicator (Return on Marketing Investment) enables the calculation of the return on marketing investments and is one of the most important features of a company's profitability. The ROMI formula generally looks like this:
ROMI = revenue generated by the company, less marketing costs, is shared by the cost of the advertising campaign.
The result can be expressed both as a percentage and as a numerical factor. For the objective calculation, it is necessary to consider the cost of the product, the profit from its realization and the amount of investment in advertising a product or service.