Key Metrics & ROI

Why measure the impact of marketing? Everyone’s job depends on it.

WHY DO THIS?

The ROI on social media was not yet optimized.

Today’s B2B sales and marketing professionals have an abundance of data to help plan and execute campaigns.

The challenge is in finding the data, corralling it and using it on a routine basis.

The important thing is to start segmenting somewhere and compare results.

What We Do For Clients

Metrics can be complex and frustrating but we find that many clients do just fine setting up the basics and growing from there.

Here’s what we do:

Metrics for Your CEO

  1. CAC (Customer Acquisition Cost) – All sales and marketing costs ÷ the number of new customers.
  2. M%-CAC (Marketing % of CAC) – All marketing costs ÷ total sales and marketing costs.
  3. LTV:CAC (Ratio of Customer Lifetime Value to CAC) – LTV = Annual gross margin ÷ Annual Cancellation Rate. LTV ÷ CAC = LTV:CAC Ratio
  4. Time To Payback CAC – CAC ÷ Monthly Gross Margin (or Revenue)
  5. MOC (Marketing Originated Customer) – What percent of new customers started with a lead generated by Marketing?
  6. MIC (Marketing Influenced Customer) – What percent of new customers had any interaction with a marketing campaign?

Metrics for Improving Demand Generation

There are dozens of these from which to choose. This is a high-level sample:

  1. Lead volume by channel – referrals, cold calls, website
  2. SEO – organic traffic, backlinks, average time on page, website conversions and more
  3. Lead quality by media and marketing channel – what message resonates more with a particular segment?
  4. Content – volume per month, content downloads, subscribers, conversions by content type
  5. Social Media – reach, engagement, conversions, net promoter score, vanity metrics

Working Together

We view lead generation through a filter of improving sales productivity. Here we focus on overall program review, sources and results and lead response path. Here are the steps:

  1. Audit all sources of demand generation data available to you, both internally and externally.
  2. Create metrics with available data, showing how they’re calculated.
  3. Map the metrics to revenue.
  4. Create a 12-month guide and checklist to keep things moving.