Metrics are something that B2B marketers are obsessed with.
I understand since I’ve been in your shoes. We want to keep track of our success, improve our campaigns, and demonstrate that our marketing strategies are effective.
However, focusing on the wrong metrics can result from this chase of analytics.
Measuring vanity metrics, for example, can make you feel good, but they don’t assist you figure out what you should do next.
To address your question, vanity metrics include things like social content, social followers, total website visitors (without regard for traffic sources or relevance), and so on.
Are you interested in becoming a revenue-first marketer? These 5 Marketing Metrics Should Be Measured!
It’s difficult to feed one’s ego.
So, what are the metrics that you must adhere to?
It all boils down to being a marketer who prioritizes money.
And I know that many CMOs struggle to identify the correct KPIs that will help them gain credibility, especially because 80 percent of CEOs don’t trust their marketing teams’ efforts.
Optimizing for revenue-related metrics can help you move away from the obsolete lead generation strategy and adapt to how people today form meaningful relationships and buy B2B products and services.
Measure the metrics that are most important to you.
You’ll enhance all five revenue-related KPIs you need to track by focusing on demand development and brand marketing (rather than lead generation).
So, let’s get started on them right away.
1. Revenue derived from direct sources
You may evaluate the revenue source and discover the inbound marketing chances that turned into paying customers in your attribution reports (and compare it to the total revenue generated).
2. Generation of qualified pipelines / SQOs (Sales Qualified Opportunities)
The qualified opportunities with a greater than 20% chance of becoming clients are referred to as your marketing-sourced pipeline.
You can examine the number of marketing-sourced SQLs that have converted into qualified pipeline and calculate the conversion rate from SQLs to SQOs, just like you can with direct-sourced revenue.
3. The percentage of sales that succeed
This rate is calculated by dividing the total number of opportunities in your pipeline by the proportion of opportunities that closed and became customers.
4. The length of the sales cycle
The amount of time it takes for leads to progress through the sales funnel and become clients.
If your marketing efforts are directed in the appropriate way, you will see a quicker sales cycle.
CAC is the fifth item on the list (Customer Acquisition Cost)
The entire sales and marketing charges required to acquire a new customer over a given time period is known as your CAC.
To calculate it, you must first determine your average marketing/sales cycle.
Change how you think about marketing
You’ll become a better marketer if you optimize for the metrics that matter.
This is why.
Most B2B organizations lack the patience to execute meaningful marketing and instead force marketers to meet quotas for leads/MQLs.
As a result, they concentrate on gathering as many leads as possible, resulting in low-quality leads with little or no purchasing intent. The truth is, as long as their organization sets a greater number of leads bar, marketers can easily alter these numbers.
However, these leads do not result in business results.
Simply said, lead generation places a premium on number over quality and has a detrimental influence on revenue metrics.
Instead, you want to establish trust, drive demand, and grow your brand (reputation) by teaching your audiences at scale about the problem you solve, the product/solution you offer, and your strategic narrative, so they’ll think of you when the time comes.
Quality leads will be a natural result of this buyer-centric approach, rather than an end goal, and your revenue-related KPIs will shine.
Don’t be fooled by attribution reports.
Many of the touchpoints with your audiences that lead to B2B transactions can’t be monitored when you drive demand in awareness channels: organic social, podcasts, online events, community, word of mouth, earned PR, Youtube videos, and so on.
As a result of these efforts, direct traffic (a traffic source that is often disregarded as a marketing win) and organic traffic (specifically branded search phrases) will grow, as well as new consumers.
Yes, these efforts in awareness channels will not appear as revenue sources in your attribution statistics, but they will appear as direct or organic channels-sourced revenue.
However, as marketers, we must focus on the most effective strategies, keeping in mind the causation even if we can’t prove a direct link.
It’s now or never…
You’ve already lost the battle to companies who adapt their marketing to how buyers acquire B2B products/services if you simply rely on lead generation.
You’ll notice stronger revenue contribution, increased SQOs and sales win rates, shorter sales cycles, and reduced CAC when your marketing activities are directed toward demand generation and brand marketing rather than lead generation.
Consider this: if you hit your targets, you’ll get more trust and reputation, and you’ll be able to do more brand promotion.
Life is too short to waste time on marketing that doesn’t generate cash.