In my role as a marketing automation consultant, a large portion of my day spent answering the questions that weigh heavy on modern marketers.
By far, one of hottest topics for discussion (and one of my personal favorites) is getting to that holy grail state of reporting.
Whether you’re a marketing newbie or a salty veteran, success will ultimately defined by the reports you can provide, and what earns you that proverbial seat at the revenue table.
To accurately determine the success of your marketing programs and make any course corrections necessary, here are a few key metrics to adopt, measure, and monitor.
Why these, you ask? Because they provide a crystal-clear picture of key buyer motivations and decisions at every stage of the funnel. You’ll reap the benefits of getting tons of insight to incorporate into your strategies.
Once you’ve analyzed the data, you’ll know what you’ve been doing that’s right, what may be wrong, and how you can get even better results in the future.
3 Metrics to Track to Measure Marketing Effectiveness
Here are the key performance indicators (KPIs) and metrics that actually matter for marketing success:
- Lead Volume & Close Rate
- Time To Close & Cost-Per-Close
Lead Volume & Close Rate
It may seem counterintuitive, but lead volume is an outdated metric. Especially when it stands alone. But when tied to your Close Rate, it shows how effective your acquisition and lead nurturing programs are (or aren’t). It’s also a great metric to shine a light on any sales and marketing alignment issues and focuses efforts around scoring and lead definitions.
Time To Close & Cost-Per-Close
Velocity reporting, or how long it takes a given lead to move through your funnel, should be a cornerstone of your reporting. This clutch report will let you know how long it takes on average to close each customer, and what you’re spending on average to achieve it.
A quick tip here is to build velocity reports and cost metrics around each buyer persona that you are targeting. Remember, different buyers act differently — one-size-fits-all is always a nonstarter, even when it comes to reporting.
Calculating the revenue delivered by each customer will clue you in to quality of the leads you are bringing in.
Ultimately, the logic is simple: The number of leads needs to be offset by quality of leads. Think of it like this: quality leads to conversion, which then leads to revenue. So, to build an intelligent metrics program, you have to work backwards and base your marketing targets off revenue – specifically, marketing-sourced revenue. Only then will you have the knowledge you need to craft killer initiatives that deliver the best results in spades.
Clear as mud? You aren’t alone
Reporting can be one of the most challenging fundamentals to conquer. One tip I share often share with my clients is this: when beginning to build marketing programs, build with reporting in mind.
Reporting is only as good as the data you have available, so initial setup is absolutely vital to your long-term success. No marketer just wakes up with best practice reporting at their fingertips, so start with the basics. Enhance when able, and analyze often. Cheers!