How to calculate ROAS in Lead Generation? | LeadScale
Posted by Maria Sperle on November 25, 2022

Marketing leaders live and breathe in a competitive world dominated by data.  

In demand gen, there is constant work to improve relevant metrics such as engagement scores, performance by channel, and cost per conversion. These metrics are important for monitoring and measuring the performance of your demand generation efforts, but they hide the actual cost of unserviceable leads. Unserviceable leads are pure waste. They waste the money spent to get that data. They also waste more time and money when you try to correct them. 

In this post, we’ll explain how LeadScale saves your marketing budget by optimizing your lead conversions, allowing you to make the most out of your marketing investment. LeadScale delivers transparent and correct personal data that makes for higher-quality leads and delivers a better return on advertising spend (ROAS).  

The actual cost of a lead generation campaign

Lead generation campaigns can be expensive. But worse than that is expensive lead generation campaigns that deliver unserviceable data.  

Imagine you have a lead generation campaign budget of $100,000, where you expect to pay $50 on your CPL (Cost Per Lead). Based on this calculation, you want to receive 2,000 leads. But what if we tell you that 25% of these leads can be unserviceable? Nonsense data and fake inputs that don’t match your ICP (Ideal Customer Profile) will be useless for your sales team. Yet, they will not know they are useless until they try to contact them. Failing that, they will waste more time trying to correct the data. All the while losing faith in marketing’s ability to deliver “good leads.” 

Having 25% of unserviceable leads means that from the 2,000 you received, around 500 will be useless. So, from $100,000 of the budget used, $25,000 will be wasted upfront with additional time wasted trying to fix the problems.  

The recession is here, and marketing budgets are being cut. There is no space to waste your marketing budget. It is time to make the most out of every dollar, pound, or euro you invested to generate leads.  

LeadScale is the right choice for any business because we deliver 100% serviceable leads to every one of our clients. 

How LeadScale delivers 100% of serviceable leads?

LeadScale uses best-in-class validation technology to ensure that 100% of leads received are fully serviceable. Our Engine collects and develops the highest quality, consented personal data to help you turn every lead into a valuable relationship.  

LeadScale Engine processes data from real people. We give you transparency and control over the sources of the data and the costs of starting those relationships. We help you find every moment that matters for growing and amplifying those relationships. This approach optimizes your marketing investment allowing you to make use of every penny invested.  

Here is how we deliver qualified leads with a better return on advertising spend (ROAS). 

    • Granular Lead Specifications
      Our specialists help your business to define and reach your target audience, minimizing waste.
    • Audiences
      We use existing and new data sets to optimize audience targeting, increasing efficiency across a range of publishers.
    • Regulatory Compliance
      We have a full publisher transparency policy. This means that all publishers we work with go through a GDPR and data collection compliance audit. Plus, our Provenance technology, provides documentation of consent for every lead collected.
    • Publishers & Channels
      When you create your lead generation campaigns with LeadScale, you have access to over 100 publishers. Your campaigns can be fully managed by LeadScale, reducing your resource allocation.
    • Lead Verification & Validation Process
      We configure the LeadScale Engine according to each of your specifications. This way we ensure only valid and on-spec leads are accepted and delivered to your CRM.
    • Campaign Design & Integrations
      From the moment we capture the lead during the campaign until delivering it to your CRM, we understand and optimize the journey of each record.

How does all relate back to sales and ROAS?

As marketers, we all need to make every penny count. With LeadScale, you optimize your budget to reinvest in where it matters. We ensure that 100% of the data our clients receive is true. The data fits your specified profile and is contactable. When you work with LeadScale, you amplify sales opportunities by 33%.  

For example, let’s keep in mind the $100,000 marketing budget mentioned previously. Add to that an average conversion from MQL (Marketing Qualified Lead) to sales of 3% and an average sales order value of $20,000. So, when you work with LeadScale, the potential amount of money made with sales is $1,200,000. While without LeadScale, it’s $900,000 in sales. You lose $300,000 in sales when you don’t work with LeadScale services.  

To better understand how the calculation works, we prepared the diagram below.  

In addition to all that, consider that: the cost of processing a record is, on average, 3x the cost of the lead when you factor in the downstream costs. These costs include sales salaries, manual assessment of each lead, and the cost of nurture. Since 25% aren’t qualifying anyway, why waste the budget? 

When you hire LeadScale Services you see a positive impact on sales. We deliver genuine data that makes for higher-quality leads, and better returns on advertising spend (ROAS). 

About LeadScale Engine

Data populates our modern world, and it can be challenging to navigate the chaos. At LeadScale, the only data that matters is data that drives productive action. Through technology and expertise, our team empowers firms to identify opportunities by owning every moment of the data journey.

Contact us and learn how we can optimize demand and lead generation campaigns for Sales and Marketing.