PPC Conversion Modeling in Lead Generation Campaigns
This is best explained by example. Suppose a regulatory consulting firm obtains new clients after form fills and phone calls. 60% of incoming client phone calls have resulted in a contract over 2 years. Looking over their financials, they see those calls generated revenue with an average project value of $15,000.
In this case, we would calculate the conversion value of a phone lead as 0.7 * 15,000 = $10,500.
For a Salesforce.com consultancy, the average projects might range from $10,000 to $500,000 or even higher from a single phone call. The numbers are impressive but they’re all over the place. Larger values with more variance distribution require a bit more consideration in order to arrive at a meaningful number.
The conversion value doesn’t have to be exact, it will serve it’s purpose if within +/- 25%.