critical marketing metrics_part 2
DESCRIPTION
Utilize these 10 critical marketing metrics when measuring the value of your current marketing and sales strategy. Avoid 'paralysis by analysis' by using the three A's of marketing when determining which pieces of data to include.TRANSCRIPT
In our last slideshare presentation, we discussed the first five of the 10 most critical B2B marketing metrics.
Just to recap they are:
1. Cost Per New Inquiry2. Conversion of Inquiries to Qualified Leads3. Cost to Acquire a New Customer4. Cost Per New Dollar of Revenue5. Sales and Marketing Cost as a Percentage of Total Revenue
First Five Most Critical
3 A’s of Measuring Metrics
Be sure to visit our previous slideshare deck “10 Critical Marketing Metrics – Part 1” for help in
measuring metrics.
3 A’s of Measuring Metrics
1. Available2. Accurate3. Actionable
10 Recommended Data Points
Out of the dozens of potential data points, there are 10 that I usually recommend for B2B marketers.
We covered the first five in our previous slideshare, we will now cover the last five.
10 Recommended Data Points
6. Conversion of qualified leads to opportunities–
Once a lead has been qualified, it is up to the sales rep to convert it into a workable sales opportunity.
Ratios for this metric can range from 20 to 50 percent.
10 Recommended Data Points
7. Opportunity close rate –
This number is calculated by dividing the total number of sales in a given time period (e.g. quarterly or monthly) by the total number of opportunities created.
10 Recommended Data Points
8. Ratio of pipeline coverage to revenue –This statistic is closely related to the opportunity close rate and refers to the amount of potential revenue in the pipeline needed to achieve a specific revenue
target.
For example, if your revenue target is $1 million and you need $4 million in pipeline deals to make this happen, your pipeline ratio is 4:1.
10 Recommended Data Points
9. Average sales cycle–This number refers to the average amount of time it
takes from first contact with a prospect until the deal is closed. The average sales cycle can range from
minutes with ecommerce products to a year or more with large ticket enterprise sales.
Effective B2B companies understand how to move prospects through the sales process in a streamlined manner.
10 Recommended Data Points
10. Average deal size –Increasing your average deal size is a great low-cost way to improve your revenue picture.
This will largely be outside the scope of the marketing department, but you can certainly help your sales colleagues by providing sales support and enablement tools.
Relation of Metrics
This graph gives you an example of how these numbers come together to provide a holistic view of your sales and marketing metrics
Relation of Metrics
You have the opportunity to improve that which you measure.
Use the above marketing metrics as a starting point, adjust as necessary to fit your circumstances and start reaping the benefits.
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About Fusion Marketing Partners
Christopher Ryan, CEO
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Brand building/messagingWebsite optimizationContent creationLead generation
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