Lead Generation-Conversion Metrics
Lead-to-opportunity conversion rates vary widely depending on the industry, quality of leads, and effectiveness of the marketing and sales processes. General benchmarks suggest an average lead-to-opportunity conversion rate falling from 13% to 18. Companies excelling in lead quality can see conversion rates exceeding 20%.
The average lead-to-customer conversion rate across industries is 2.9%.
Average conversion rate by industry
Agency Auto B2B eCommerce B2B Services B2B Tech B2C Dental & Cosmetic Finance Healthcare Industrial Legal Professional Services Real Estate Travel
2.30%
3.70% 1.80% 2.70% 2.30% 2.10% 3.10% 3.10% 3.00% 4.00% 3.40% 4.60% 2.40% 2.40%
B2B companies with mature lead generation processes experience 133% more revenue than companies, demonstrating the substantial impact of well-developed lead generation strategies.
B2B startups often see conversion rates from opportunity-to-deal at around 25%-37.5%.
These metrics are impacted by factors such as the complexity of the buying process, the level of decision-maker engagement, and the specific challenges different industries face.
Lead Response Time (LRT) is a critical factor in B2B marketing, directly impacting conversion rates. The ideal response time for SQL follow-ups is as close to real-time as possible, with studies showing that the odds of converting a lead into a customer drop significantly as response time increases.
The odds of making contact with a lead decrease by over 10 times if you wait just 5 minutes instead of responding immediately.Responding to leads within the first minute can increase conversions by 391%. Slow lead response time increases customer churn by 15% and even worse, 30% of your prospects will go to a competitor if you don’t respond quickly enough.
Wednesday and Thursday emerged as the most effective days for initiating contact (49.7% more effective than the least productive day). Calling between 4 to 6 PM maximized contact chances (114% more effective than the least effective time). The 8-9 AM and 4-5 PM intervals were prime for qualifying leads, showing a 164% improvement over the least effective time (1-2 PM).
Cost per Lead (CPL) varies significantly by channel and is influenced by factors such as the target audience, industry, and specific marketing strategies. Digital channels, including LinkedIn, content marketing, Pay-Per-Click, and email marketing, often serve as primary sources for B2B leads. LinkedIn is known for its higher quality leads, particularly for B2B companies, though it may also come with a higher CPL compared to other channels.
Average cost per lead by channel and industry
Referral SEO Email Social media Content Display Webinars PPC Direct mail Cold calling Events
Business Services $31 $43 $61 $79 $116 $122 $153 $214 $305 $336 $1,220
Coaching and Training
$64 $90 $128 $166 $243 $256 $320 $448 $640 $768 $2,560
Construction
$38 $53 $75 $98 $143 $150 $188 $263 $375 $450 $1,500
Design Companies
$38 $53 $75 $98 $143 $150 $188 $263 $375 $450 $1,500
Education $10 $14 $20 $26 $38 $40 $50 $70 $100 $120 $400
FinancialServices $56 $79 $113 $146 $214 $225 $281 $394 $563 $675 $2,250
Healthcare $97 $135 $193 $251 $367 $386 $483 $676 $965 $1,158 $3,860
Hospitality $18 $26 $37 $47 $69 $73 $91 $128 $183 $219 $730
HR Companies $76 $107 $153 $198 $290 $305 $381 $534 $763 $915 $3,050
InternetCompanies $40 $56 $80 $104 $152 $160 $200 $280 $400 $480 $1,600
IT Services $28 $40 $57 $73 $107 $113 $141 $198 $283 $339 $1,130
Management Consulting $93 $131 $187 $242 $354 $373 $466 $653 $933 $1,119 $3,730
Manufacturing $43 $60 $86 $112 $163 $172 $215 $301 $430 $516 $1,720
Marketing/Advertising $29 $41 $58 $75 $110 $116 $145 $203 $290 $348 $1,160
Retail $22 $30 $44 $57 $83 $87 $109 $152 $218 $261 $870
SaaSCompanies $45 $63 $90 $117 $171 $180 $225 $315 $450 $540 $1,800
Software/Technology $14 $19 $27 $35 $51 $54 $68 $95 $135 $162 $540
TelecomsCompanies $74 $103 $148 $192 $280 $295 $369 $516 $738 $885 $2,950
Source – https://sopro.io/resources/blog/b2b-cost-per-lead-benchmarks/
Email Engagement
Analyzing your open rates is one way to gauge how engaged your audience is with your brand – and how compelling your subject lines are. Some reports put the average email open rates at 20-30% while others report the average at around 15%.
Click-through rates (CTRs) are the percentage of recipients who clicked a link in your email out of those who opened your email. It is useful for determining whether your audience finds the information useful enough to click through after reading it. The average CTR across industries hovers at 2-5%. New product and feature announcement emails have the highest CTR, according to B2B marketers.
Social Media Engagement
Social media engagement is essential for B2B companies because it enhances brand visibility, establishes thought leadership, provides valuable customer insights, drives lead generation, facilitates networking, improves SEO, and supports customer engagement. By effectively leveraging social media, B2B companies can strengthen their market position and drive business growth.
Average engagement rate for the technology sector
- Instagram: 1.25%
- Facebook: 0.72%
- X (Twitter): 1.34%
- LinkedIn: 1.27%
- TikTok: 0.44%
Source – https://blog.hootsuite.com/average-engagement-rate/
LinkedIn’s conversion rates stand out against other social media platforms. HubSpot found that LinkedIn generated the highest visitor-to-lead conversion rate at 2.74%, significantly outperforming Twitter and Facebook, which had conversion rates of 0.69% and 0.77% respectively.
HubSpot’s research further suggests that, more broadly, the best times to post on social media across all industries and platforms are between 6 PM to 9 PM and 12 PM to 3 PM, with Friday being the most effective day​​. For LinkedIn specifically, aiming to post between 9 – 12 PM, 12 – 3 PM, or 3 – 6 PM, with Mondays, Wednesdays, or Tuesdays being the best days, is recommended​​.
Revenue Metrics
The average marketing ROI in B2B sectors is about 5:1. That means that for every dollar invested in marketing, businesses can expect to generate five dollars in revenue.
Which digital marketing channels yield the highest return on investment (ROI)?
Digital Marketing ROI By Channel
| Channel | Time to Break Even | Return on Ad Spend (3-year average) | ROI (3-year average) |
|---|---|---|---|
| SEO | 9 months | 9.1 | 748% |
| SEM/PPC | 4 months | 1.55 | 36% |
| E-mail Marketing | 7 months | 3.5 | 261% |
| LinkedIn - Organic | 5 months | 2.75 | 229% |
| LinkedIn - Paid | 5 months | 2.3 | 192% |
| Facebook Ads | 3 months | 1.8 | 87% |
| Webinars | 9 months | 4.95 | 430% |
| Influencer Marketing | 6 months | 3.45 | 206% |
| Online PR | 8 months | 1.6 | 62% |
Source – https://firstpagesage.com/reports/digital-marketing-roi-statistics/
The ROI of pay-per-click (PPC) campaigns measures their profitability by comparing the costs to the generated returns. Research indicates that the average ROI for PPC campaigns across various industries is 36%.
The ROI from search engine optimization (SEO) efforts is determined by comparing the investment to the returns. An effective SEO ROI is around 5:1, or 500%, although this can vary by industry.
The ROI from webinars is assessed by calculating the profits earned from webinar events relative to the expenses incurred on these events. Determining an exact ROI for webinars can be challenging as it requires identifying the profits that can be directly attributed to the event. In the B2B Software as a Service (SaaS) sector, webinars tend to have a high ROI, averaging 213%.
Customer Retention
Customer retention is an organization’s ability to retain existing customers and continue generating revenue from them. What are the average customer retention rates of the major B2B industries?
| Median Customer Retention Rates by Industry 2022 | Median Retention Rate (%) |
|---|---|
| Energy /Utilities | 89 |
| IT Services | 88 |
| Computer Software | 86 |
| Industry Services | 83 |
| Financial Services | 81 |
| Professional Services | 73 |
| Telecommunications | 69 |
| Manufacturing | 65 |
| Logistics | 60 |
| Consumer Packaged Goods | 60 |
| Wholesale | 44 |
Source – https://customergauge.com/blog/average-churn-rate-by-industry
Conversely, for B2B companies, typical customer churn rates often range around 3-5% per month, especially for SaaS companies targeting smaller businesses.
Maintaining a high retention rate is important as the average B2B company generates up to 30% of its revenue from retained customers.
The average customer lifetime value (CLV) varies significantly by industry. Architecture firms can have a CLV of $1.13 million, business consultancies around $385,000, digital design brands about $90,000, financial advice firms might see a CLV of $164,000, healthcare consultancies around $330,000, insurance companies at $321,000, and software companies approximately $240,000.
NPS is strongly linked to customer retention and revenue growth, as it reflects customer satisfaction and loyalty. Companies with higher NPS scores often see better retention rates and more robust revenue growth. Average NPS benchmarks for B2B are:
| Industry | Median Net Promoter Scores |
|---|---|
| Health Care | 58 |
| Energy/Utilities | 58 |
| Manufacturing | 49 |
| Industry Services | 44 |
| Professional Services | 44 |
| Financial Services | 44 |
| Consumer Packaged Goods | 41 |
| IT Services | 40 |
| Logistics | 38 |
| Computer Software | 36 |
| Wholesale | 34 |
| Telecommunications | 31 |
Source – https://customergauge.com/blog/b2b-nps-benchmarks-tying-revenue-to-your-experience-program
By comparing your organization’s performance against these industry benchmarks, you can identify areas of strength and opportunities for improvement. Remember, benchmarks are guides, not absolutes. Tailoring strategies to your specific market, customer base, and business objectives is key to leveraging these insights effectively. As the B2B landscape evolves, so too will these benchmarks, requiring continuous monitoring and adaptation of your strategies to stay ahead in a competitive market.
