Nowadays companies struggle to distinguish and identify a consistent set of marketing metrics with their B2B marketing efforts. Measuring your campaign's outcomes increases visibility and allows real improvements to the effectiveness of marketing spend. Tech companies pay around 10% of their overall budgets on marketing, but do businesses always know the exact return on their investment?
Applying the correct metrics at the right time can unveil how your campaigns perform, where you’re spending has the most significant impact, and how your campaigns impact the sales pipeline. Despite the massive amounts of technology thrown at measuring marketing and sales performance, a large segment of B2B companies is no more effective or efficient than they were a decade or two ago.
Next, we’ve gathered three of the most useful metrics to improve your B2B marketing ROI.
The revenue growth is the amount of money a company receives in exchange for its products and services. According to a Forbes article, an excellent method for marketers to understand their impact on revenues is to do extensive baseline testing. This testing can involve measuring sales levels pre and post-marketing. By applying these metrics, all of your efforts will be focusing on addressing the worst experiences at every contact point. Invest in innovation to delight the customer after testing to see which skills have the most impact.
The customer retention rate (CRR) is a metric that exposes whether your marketing and customer care struggles are useless or they are fortifying your business. The most efficient way to guarantee your company a promising future is by staying on top of your customer retention rate. Also, if you’re tracking this metric, you'll be able to prevent a surprise downfall and make vital changes to reach your sales and growth objectives.
The formula for CRR = ((E-N)/S)) X 100, where every variable means:
Customer Acquisition Cost, known as CAC, relates to the resources that a business must spend (financial or otherwise) to acquire a new client. It includes every single effort needed to enter your products and services to potential buyers, and then convince them to purchase and become active customers. Furthermore, the CAC can define a business’s profitability by looking at the difference between how much money can be obtained from consumers and the costs of acquiring it.
Being a data-driven marketer in today’s age, it's not all about understanding the analytical marketing metrics, but being capable of performing with half-done information. Even if your reports will never be 100 percent accurate or available, as long as they allow you to operate and take business decisions, you will be one step ahead of your competitors.
If you are starting from ground zero or are facing challenges with data or resources, feel free to contact us!