52% of B2B companies consider “extending marketing’s influence across the buying journey” as a top priority, per a new study by Madison Logic and Demand Gen Report.
Other key B2B priorities highlighted in the study were:
- analyzing & understanding attribution metrics on account-based ROI
- Measuring & understanding specific account engagement
These priorities skew towards account-based marketing (ABM) which requires marketing and sales to align closely across the buyer’s journey.
Below are a number of marketing metrics that can help create alignment and target what matters for the C-suite. However, all require attribution and, at a minimum, campaign and conversion tracking via marketing and sales automation. These requirements connect the dots from awareness through sales won or lost. Without out this through-line, it’s difficult if not impossible to gain insights tieing marketing to revenue generation.
SAMPLE MARKETING TO REVENUE METRICS
- % Marketing generated sales
- Incremental revenue generated by marketing
- Funnel and pipeline conversion rates (from touchpoint to touchpoint)
- New accounts engaged with the ideal customer profile target list (named accounts being targeted)
For many B2B companies, especially those in traditional industries like industrial manufacturing, these metrics are beyond current capabilities. Many B2B organizations are not measuring beyond website visitors, generic lead counts and sales. Some have not yet invested in a CRM let alone automation.
The best approach for these less sophisticated B2B companies is to establish metrics by working backward from a successful closed/won outcome. In other words, track the steps a particular customer went through in the course of buying. This will involve interviewing new customers and asking questions like:
SAMPLE CUSTOMER INTERVIEW QUESTIONS
- Describe your role.
- What put you in the market for a solution?
- How were decisions made to purchase the solution?
- What are the biggest challenges in your role?
- How did you initially become aware of our solution?
- What was perceived as most important for selecting a vendor?
- What makes this role – or part of it –inconvenient or frustrating?
- What approach were you previously used to address this issue?
- How did our solution compare to others you looked at or considered?
This process will help identify the metrics and reporting to clearly showcase marketing’s impact on closed business.Measuring something is better than nothing. So at a minimum, start monitoring these basic customer acquisition program metrics:
- Conversion Rate (multiple variations; e.g. avg. lead close rate)
- Cost per Lead or Action (CPL)
- Customer Acquisition Cost (CAC)
- Return on Channel Spend (or advertising spend)
These metrics will help create a base for making better business decisions and marketing budget allocations. As the teams become comfortable with these metrics and invest in better technology like marketing and sales automation (e.g. CRM, etc.), they can expand into the metrics.
Want assistance with identifying and establishing the right marketing and sales metrics? Contact Kevin (or call 513.601.8893) to discuss a project to get you started.