Understanding The Key Metrics In SegMetrics
Metrics Definitions
New Leads -- The number of new Contacts added to your CRM account
New Buyers -- The number of New Leads who have made a purchase. In other words, of the people added to my CRM account during a given timeframe, the number of those people who have purchased something
Conversion Rate (or Conv. Rate or Conv.%) -- The percentage of New Leads who have converted to Buyers (i.e., New Buyers / New Leads)
New Lead Value (or Lead Value) -- The average amount of revenue generated by a New Lead.
Note that this calculation includes all revenue ever generated by the New Leads in a given timeframe. So if you’re looking at a report for January 2015, the Lead Value for the New Leads in that report will include all revenue generated by those Leads up until present day.
This is really helpful for understanding how leads monetize. If you look at the Lead Value for New Leads that joined your list a year ago, they may now be worth $$60 each while New Leads that joined your list yesterday may be worth $0. That $60 Lead Value could be indicative of how much yesterday’s New Leads will be worth in a year’s time.
New Lead Revenue -- The amount of revenue generated -- all-time -- by the New Leads in any given report.
For example, in this report we’re analyzing 3,097 New Leads who signed up in October 2014. From the day they signed up until present day, those New Leads have generated $13,495.
To be clear, this is NOT the amount of revenue they have generated during October 2014. It is the all-time revenue for New Leads.
New Buyer Value -- The average revenue generated by a New Buyer during a given timeframe. The calculation for this metric is Lead Revenue / New Buyers.
Sales -- The number of Products sold during a given timeframe. Plain and simple.
Revenue -- The amount of Revenue generated during a given timeframe.
The Difference Between New Lead Metrics vs Purchase Metrics (i.e., Blue Columns vs. Green Columns)
You may have noticed that the metrics in the Table Reports are divided into two sets of columns -- blue and green.
The blue columns are “New Lead Metrics”. The New Lead Metrics reflect the activity of New Leads generated during a given timeframe.
The New Lead Metrics are key for analyzing the number, conversion and value of New Leads. You may use these to track how many New Leads you have acquired from a given Referrer, or how much Revenue has been generated to date by people who first joined your list in February 2015.
The green columns are Purchase Metrics. These metrics don’t depend on whether someone is a New Lead or not. They are a reflection of how many total sales were processed by your payment processor.