ROI Calculator for B2B Marketers

ROI Calculator for B2B Marketers

ROI Calculator for B2B Marketers

Your B2B marketing ROI matters.

You are welcome to use our new marketing ROI calculator, customized especially for B2B marketers.

We looked at a lot of ROI calculators available on the web and found them inadequate. So we developed our own.

Our calculator is built in Google Sheets. Anyone can access and use it, no email required. We recommend that you download the calendar, study it a bit, and customize for your business and circumstances.

Pay attention to the built-in notes, indicated by red triangles in a few cells.

Click to view or download. Free, no email required.

Many thanks to Anders Hoff, head of UX at Springboard, for providing the foundation for this calculator.

The back story

Marketing ROI in B2B has evolved from a mostly ignorable nuisance to a must-have for today’s top performing marketers.

CEOs and CFOs are under more pressure than ever to show results and they’re transferring that pressure to you. Rightfully so.

Most? B2B calculators available seem to be configured for B2C e-commerce. This just doesn’t work for B2B with our lengthier sales cycles and difficult-to-find metrics for conversions.

An ongoing project

View this ROI calculator for B2B marketers as the start of your ongoing efforts to track ROI from various activities over time. You will need to customize the calendar for your purposes. For example, there are fields for deal closing probabilities that only you can enter. However, we’ve provided some back-of-the-envelope formulas to get you started.

Plan to own the calculator. Download it from Google Sheets and customize it. Share it with your colleagues, especially those in sales. Help them understand your objectives for measuring ROI and how it helps the company overall.

How to use

Our calculator is actually six calculators in one, plus an Overview of all your marketing ROIs:

 

  1. Email
  2. Events
  3. Advertising
  4. Social media
  5. Public relations
  6. A blank template

Pick one ROI calculator that seems like a good place to start. Customize it where you can and make a note of the fields for which you’ll need to find information. All of the ROI calculators contain probabalities of a deal close from various CTAs. Obviously someone scheduling a demo from your landing page is going to carry a much higher weight than someone just clicking on a content link.

The best way to use this is make a copy of the entire worksheet for each month. Then within that month make copies of individual spreadsheets for multiple campaigns in the same category.

Works best with a marketing automation platform

You’ll work a lot faster with a marketing automation platform. A good platform will deliver a lot of the data you’ll need for this spreadsheet.

However you can still find the right data with Google Analytics, your website platform and dozens of other tools that deliver campaign results.

ROI calendar for B2B marketers. Feel free to reach out.

If you need help feel free to contact us. Also, a good way to keep up with the tools we create and content we publish is to subscribe to our once-a-month email.

If you like our new ROI calculator for B2B marketers drop us a line and let us know.

 

About Mike Harris

Mike is the founder of Harris CMO Partners, a Nashville based firm offering interim and fractional CMO services to B2B companies.

He enjoys writing about what's working in B2B sales and marketing.

Website content and all attachments are the property of Harris CMO Partners LLCĀ  2021

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Marketing Metrics Your CEO Will Love

Marketing Metrics Your CEO Will Love

February is marketing metrics month for B2B marketers.

January results are in the bag and February is an ideal time to start checking the assumptions in your 2017 strategy. ?Focus on these marketing metrics, applying YTD comparisons if you have last year?s metrics.

marketing metrics cartoon - CEO not impressed

Remember, marketing department metrics differ from CEO/CFO metrics. For the marketing troops, who are always looking forward, metrics like marketing touches, click-throughs and conversions are critical. As a rule, however, CEOs and CFOs don’t care about these.

CEOs and CFOs are typically backward looking because they are accountable to investors and others for reporting financial performance. Their ?metrics are almost always financial and historical.

You need to provide both types of metrics. Work with accounting, IT and sales to find the data you need…it?s there but sometimes requires effort to find it.

Key marketing metrics for your department

Many of these tools are adding features to encompass a range of metrics. The market is saturated with offerings so you?re bound to find something for your specific needs.

1.????Website page views ? This simplest of marketing metrics, viewed as a timeline charted against your campaigns, gives you a very quick idea of whether your tactics are working. A good starter kit tool is Google Analytics, which is free. In the ?better? category are SimilarWeb, Alexa and SE Ranking.

2.????Press and analyst mentions ? If you?re getting the positive attention of industry and financial press, your positioning, content and outreach tactics are rockin? and rollin?. Two free apps are Talkwalker Alerts and Social Mention. As your needs become more complex, you can move to apps like Mention and Meltwater.

3.????Organic search rankings ? This is typically used to track your traffic and your competitors?. I like SEMRush; other top contenders include SEO ToolSet, MOZ and BrightEdge.

4.????Click-throughs and conversions by marketing channel ? This is a job for marketing automation platforms, of which there are at least 250+ available. I use Jumplead because it?s cheap and includes CRM. Other favorites include InfusionSoft and Hubspot, both of which include simple CRM and sales force automation features. Again, there are tons of these on the market so you?ll have your pick.

5.????PPC results ? Google Adwords is the go-to ?free? resource. Other excellent apps include Keyword Competitor, iSpionage and SpyFu.

Key marketing metrics for the CEO & CFO

marketing metrics cartoon - email results1.????CAC ? Customer Acquisition Cost is the total of all sales and marketing costs (fixed and variable) divided by the number of new customers a given time period. If your company?s products have a long sales cycle it?s best to take quarterly measurements so use Q42016 as your first report in 2017.

2.????M%-CAC ? Marketing percent of CAC is total marketing costs divided by CAC. Put the spotlight on you before someone else does!

3.????Time To Payback CAC ? This is monthly (or quarterly) CAC divided by monthly (or quarterly) gross margin. Work with your accounting department on this one.

4.????MOP ? Marketing originated pipeline is the number of qualified prospects that marketing put in the pipeline in January. This is a job for your marketing automation tool. Work with sales on this metric because, as end users, they are the ultimate decider of what makes a qualified lead.

Remember, don?t do this work in a vacuum! Work hand-in-hand with sales and accounting on the CEO/CFO metrics to gain agreement on the data that underpins the metrics. You don?t want to be embarrassed by an unforeseen challenge to your calculations.

Marketers must continue learning and applying metrics such as these because we can?t expect our peers and executive team to place value on something we can?t quantify.

Demand Generation Metrics and Analytics

Demand Generation Metrics and Analytics

Business-to-business marketing conversations have shifted noticeably toward demand generation metrics. Activities that lead to sales conversations and revenue are important and can be measured. For the small to mid-size B2B this is often a new undertaking.

Demand generation metrics help quantify success at various stages of the process.

Click on the link below to view or download this report.

Not the Same As Corporate Marketing

Demand generation is different from corporate marketing. It consists mainly of inbound and outbound campaigns which lead to conversions and sales conversations. With engaging content that encourages audiences to say “tell me more”, campaigns also include a next step such as clicking on an article, filling out a form or registering for an event. Demand generation metrics are available for email (#1 lead generator), social media, SEO, paid search, display ads and more.

Corporate marketing includes brand building, print advertising, public relations and other activities. Their impact is important however results are more difficult to measure when it comes to conversions and sales conversations.

Demand Generation Metrics

Campaigns and tactics can be adjusted to yield better results when measured. A marketing automation platform is the fastest way to do this. Hundreds are on the market today and there are MAPs available for every size of B2B company. MAPs can personalize emails, segment databases, automate lead nurturing and track sales all through the funnel. Plus they can give you reliable metrics so you can plan and adjust going forward.

Many B2B marketing leaders report difficulty in measuring overall results. We believe it’s due to an overall lack of time and resources, not for a lack of numbers. Focus on small victories before moving to more difficult measurements like calculating content ROI. Since email is the number one lead generator, start there. Check out Hubspot’s blog post for more details.

Marketo is the world’s leading enterprise marketing automation platform. Their Definitive Guide to Marketing Metrics is important to understand, even if you’re not using a MAP today. Use them as a guide to metrics that help you plan for future campaigns.

This paper is good reading for any B2B marketer, regardless of company size. It’s a bit lengthy so read it in chunks you can digest.

Click here to view and/or download Marketo’s Definitive Guide To Marketing Metrics.