As marketers, we are excited to see our Twitter followers go up, LinkedIn connections increase, and blog posts opened. This must mean our marketing efforts are working, right? Well, yes. But what is significantly more important is how our marketing efforts are increasing pipeline, revenue, and profitability for our company. What good is a couple hundred followers that never turn into validated sales opportunities or engage in our content? Therefore, it is essential you have a way to measure the effectiveness of your marketing campaigns for a better ROI.
Metrics that Matter:
There are many metrics available to see if your marketing efforts are making a difference including SEO rankings, social media reach, and traffic to your website. While these all help paint the bigger picture of how your marketing contributions are affecting your company, it’s important to use credible, financial metrics that are helping generate revenue, growth and pipeline. No metric alone can tell the whole story, so here are some key metrics to consider when comparing your efforts to your results:
- Calculations for quantitative efforts: These include efforts like number of attendees to your event, number of units sold, or number of leads gained to show what campaigns are bringing in the most money. Quantitative results clearly and evidently show effectiveness.
- Cost per sale = amount spent for event/campaign ➗ number of sales
- Cost per qualified lead = amount spent for event/campaign ➗ number of qualified leads
- Cost per visitor/response = amount spent for event/campaign ➗ number of visitors or response
- Qualitative goals: Qualitative efforts are harder to track than quantitative efforts for obvious reasons. When measuring qualitative efforts, think about your customer’s perception of the product. How does it rank compared to competitors in terms of price, quality, value, awareness?
- Pipeline growth and acceleration: With your marketing activities, you should be able to see how pipeline growth and acceleration change from week to week, month to month, quarter to quarter. It’s critical your team fill the pipeline with new leads to meet goals. Not only is growth important, but you should be tracking if the number of leads achieved is accelerating as well.
- Cost per lead/opportunity: While your efforts may have achieved quality leads that have turned into validated sales opportunities, it is important to keep track the cost of doing so. Investing more money might lead to higher quality leads resulting in your goals being met, but make sure to do this as effectively as possible to ensure a better ROI.
- Social engagement: Social engagement is a much greater sign that your marketing efforts are making a difference than your reach. Followers who like, share, comment, retweet, and “engage” with your content help your company by having your content reach their followers as well. Additionally, buyers today are using social media to thoroughly research your company, and engagement shows credibility.
- Lead generation by content and channel: With blog posts, tweets, email campaigns, and many other marketing efforts your putting in to generate revenue for your company, keep track of where your leads are coming from.