How to Analyze Business Performance for More Sales?

The advent of digitization has completely changed the way we deal with customers. Now, you don’t have to wait for them to come physically and sign a deal. Everything can be done online. Instead of investing on premises, entrepreneurs prefer to set up their businesses online through a website.

Did you know there are 1.13 billion web-based businesses in the world as of February 2023? Out of them, 200 million are  active according to a report.

That’s why online presence has become a must to grow. This decision is challenging but also rewarding because they can have a number of customers that is beyond their limit. This is not the end of the world for them. One more thing is there that keeps leads or business inquiries coming to them. Do you know what it is?

Data Analysis for Businesses: An Introduction

It’s data analysis. Yes, getting inquiries or calls to purchase your products or services is less crucial than their continuity. It keeps any business up and running. Here is how.

In a nutshell, the analysis of lead data ensures discovering the ideal customer profile and intent. This understanding helps in developing marketing campaigns to attract more leads. Once reached, these customers are guided through the sales funnel to make purchasing decisions.

So, at ground level, leads emerge, which must be of high quality. Achieving this target is possible if you closely monitor and analyze lead generation efforts.

Let’s understand all key performance indicators (KPIs) whose measurement can provide you with the clue to make lead generation campaigns extremely effective. Some areas or useless strategies can also be highlighted that are failing to deliver the desired outcome.

Why analyze leads for business growth?

Well, it is significant to evaluate lead generation campaigns’ performance. Before that, you should remember your business objective because the campaigns should complement it. Otherwise, they will attract irrelevant leads or inquiries.

Businesses emphasize attracting outnumbering leads. And undoubtedly, they get them in huge volume, but a majority of those inquiries are found redundant. If analyzed, it won’t be difficult to understand that quality is way ahead of quantity. So, the moral of the story is that the goal of those campaigns should be to attract leads that are likely to become customers. Considering how to achieve it, the data analysis of campaigns can prove a milestone. Its findings can highlight flaws in them, which ensures their fixing to acquire intended customers.

Moreover, you can find out “what’s working” and what’s not” on your website, or social media channels. With this knowledge, you can align more resources like ads, offers, etc. so that they can maximize your ROI. Overall, close monitoring or analysis can help you identify any roadblocks in your customer journey. By determining where they drop off, you can put in some extra effort and refine your campaigns. This practice will definitely help you to nurture leads and maximize conversions.

Let’s guide you to monitor the performance of any online business.

Top KPIs to Monitor Lead Generation Success

Fortunately, monitoring lead generation campaigns is easy, provided you know these key performance indicators, or KPIs.

1.  Conversion Rate Monitoring

The conversion rate is the percentage of incoming inquiries or potential customers who followed the call to action on your website or platform. It is directly connected with the call-to-action, or CTA, which can be a prompt to sign up for a newsletter, submit an inquiry form, or book a demo.

Overall, conversion rates determine the effectiveness of your website, landing pages, online content, or offers, which convert casual visitors into intended customers. The skyrocketing conversion rates make it crystal clear that whatever settings or offerings you cater to, they resonate with users’ intentions.

This is why its analysis is vital. It can guide you to optimize resources in order to enhance the effectiveness of your marketing campaigns online.

2.  Tracking Cost Per Lead (CPL)

Cost per lead represents the average amount of money invested to acquire a new customer or lead. Highly professional data analysts calculate it by dividing the advertising cost by the number of inquiries generated.

Let’s say you invested $2K in an online advertisement that generated 50 new leads. Then, the CPL would be $2000/50, which is $40.

This KPI can prove to be a helpful guide. Simply put, you can effectively manage the amount you spend on every online campaign. Once compared with others’ CPL in your industry, you can see if it’s higher. The higher CPL indicates that you have to brainstorm how to effectively realign your marketing strategy with the preferences or intent of your target audience.

3.  Analyzing Lead-to-Customer Conversion Rate

Receiving hundreds of inquiries on the phone or via email is just an initial phase of your prospective growth. The process of converting them can be a little longer. With a lead-to-customer conversion rate, it can be simpler and easier.

Technically, this percentage is the proportion of leads or inquiries that actually invested in or followed the call to action. This is actually the aim behind running an online campaign for lead generation or engaging voluminous traffic.

After analysis, if this conversion rate turns high, it indicates that you have hit the right ball. Your marketing and sales campaign is going well towards the goal of outnumbering leads and maximizing returns.

On the flip side, a low conversion rate shows that you have to improve that campaign. And data analysis will help you reach out to that problem in the funnel of acquiring sales. Perhaps your campaign missed personalized attention. Or, your campaign should be more compelling. This is all you can analyze and fix to increase your growth prospects.

4.  Discovering Bounce rate

This is a technical term associated with the visitors to your website or landing page. It shows how effective your online presence is. To discover this, you have to analyze the visitors to your web page who jump out of that page without interacting or converting.

In order to understand the specific reason for the high bounce rate, you have to check the keywords or phrases that attracted the traffic to click and explore. And when it came, it found things disengaging. However, this can be just a point. There may be other reasons, like slow uploading, any redirecting error, or the content does not resonate with visitors likelihood. These reasons disappoint those who come off the website without investing.

Overall, deep data analysis can help in finding and fixing these errors if you want to attract more inquiries and, hence, revenue.

5.  Website traffic monitoring

Web traffic represents the incoming visitors to a website. However, it does not actively connect with the revenue. You cannot ignore the fact that their visits, inquiries, and interactions with your website are significant contributors to conversions.

Declining organic traffic refers to loops in your link-building strategies, thin content, or any navigation challenges. Sometimes, your goals do not resonate with your web elements, like a call to action. These are some vital issues that can be discovered through deep analysis. Even tools like SEMrush can highlight them in a fragment of time.

You must remember that relevancy is important. If you are able to attract relevant or intended traffic, the leads will increase, and the conversion rate will increase.

6.  Customer lifetime value (CLV)

This is related to the revenue generated over the span of a customer relationship with a business.

You should prepare an average CLV for new customers. If it’s high, you can focus on them to attract more revenue from corresponding online campaigns. Here, you should understand how to retain customers and maximize cross-selling. Ultimately, it will increase your revenue.


Analyzing a business and its performance is not easy. However, the online presence has made it easier because you can measure the performance, the number of inquiries or calls, how they have come, the reason why they are high or low, etc. Overall, you have to focus on the KPIs that are aforementioned, as they can make you the real growth hacker through data analysis of your business performance.

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