Friday, October 31, 2008

Worksheet to Calculate Demand Generation Business Value Now Available

The fourth and final item I had planned to add to the Demand Generation Guide Web site was posted yesterday. This is a spreadsheet on calculating the business value of a demand generation system. Basically it defines a formula for calculating profit based on factors that are affected by a demand generation system: number of leads, lead-to-customer conversion rate, net margin per customer, acquisition cost, lead handling cost and sales cost. It then identifies which factors are affected by different demand generation applications (lead generation campaigns, lead nuturing campaigns, lead distribution, reporting). These are set out on a spreadsheet so users can enter the current values and then make changes to reflect gains expected from the demand generation system. The system calculates profits from both sets of figures and shows the difference, which is the value of the new system.

Nothing fancy about all that, but bringing it down to the different applications adds a note of reality to the usual "pull numbers of thin air" approach, I think.

The business case worksheet and other articles are available for free at

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