Lead Goal Calculator

If you’re like most business owners, your top priority is growing your company. You want to know how many leads you need to generate to hit your revenue goal. This article will help you figure that out by answering the following questions:

How many leads do you need to reach your goal

To reach your goal, you need to know the number of leads you need. This is calculated by multiplying the number of leads per month by 12 and then dividing it by the conversion rate. Then, multiply that result by the average transaction value (ATV) and divide it by 100.

Start With Your revenue Target

Select your revenue target for the year and then work backward into your leads. Make sure it’s realistic but ambitious. Your revenue goal should be challenging, but still within reach so that you can achieve success and celebrate it with your team! If you don’t know what this number should be, start at a 10% increase from last year as a starting point and adjust accordingly as time goes on (and if needed).

What is Your Average Transaction Value

Your average transaction value will tell you how many of these you need to sell to reach your revenue goal. If your goal is 10 and your average transaction value is 1, you need to sell 10 of these things to reach your goal.

Enter Your Estimated Lead Conversion Rate

If you got 10 leads today, how many would you close. When we ask businesses this question, typically they tell us 60-70%+. In reality, a recent service titan study found conversion rates to average at 42% across the board for home services. With larger companies (25+ techs) averaging 59% conversion rates and small companies (5 techs or less) averaging just 24% conversion.

Once you determine a conversion rate, this will tell you how many leads you need to convert the goal target number of jobs to reach your goal.

For example, if you goal revenue is 100 and you need 10 jobs to reach that goal, if your conversion rate is 50%, you will need 20 leads. If you get 20 leads, that is the beginning of the equation to reach your revenue goal.

What is the optimal # of leads needed to hit your revenue target?

This goal calculator is meant to help you find the right number of leads, so you can stop worrying about whether your lead generation efforts are working. Once you know your lead conversion number you will be able to determine how many leads you need to do that number of jobs.

Identifying Your Lead Gap

At this point, you know how many leads you need to reach your goal, but how many leads did you even get this year? If you do not have a CRM or company to track all in bound leads, you can reverse the calculation to show you.

Start with your ending revenue amount. Then work backwards through the calculations to determine the number of leads you generated for the year.

What is the difference between leads this year compared to your goal

Compare the leads you got this year to the number of leads you need for your goal revenue target, this is your lead gap. If you need more leads, you need to come up with a strategy to generate more leads for your business.

Some ideas to help get more leads

There are a number of ways to get more leads.

Use a CRM to track your leads.
Use a marketing automation tool to help you convert more leads into jobs.
Use a lead generation tool like webchat to convert more website visitors to leads.
Run digital ads on Google, Yelp, Angi and Thumbtack to attract prospects who are interested in what you’re selling or offering; then nurture them until they buy from you.
Optimize your website for conversions by improving design, content and performance.

Grow your business with a strategic marketing team

If you need a strategy, consider working with a digital marketing company that takes a consultative approach to your business’s success.

The first step to building a marketing plan is to figure out how you want your business to grow. Do you want to dominate a specific niche? Do you want more of a specific type of leads? How will you track your performance monthly to ensure success? The answers to these questions will help determine your target market, ideal customer profile and the long-term goals for your business.

Digital Marketing Consultant for Local Service Businesses

At Phlash Consulting, we take a consultative approach to marketing and act as an extension of your business to help ensure success on a monthly basis. We work hands-on with companies to help them grow and reach their revenue goals. Set up a free 30-minute strategy session to discuss your business and reach your goals in the new year!