B2B marketing metrics to track
We get asked all of the time by clients what metrics they should be tracking to ensure that their marketing efforts are moving in the right direction. While there are many metrics that a marketer needs to keep track of these 17 metrics are the ones that I recommend you pay close attention to.
Names – These are the target prospects in your database that have not engaged with anyone at your company.
# of Leads – Target prospects who have engaged with any kind of marketing campaign that has ended up with the prospect giving you some kind of information (typically email address but many times more than that)
Cost Per Lead (CPL) – The cost to generate that lead.
Marketing Qualified Leads (MQLs) – A Lead that’s good enough to be handed off to the Sales team. Many times, this is done by scoring each lead based on their engagement.
Conversion rate from Lead to MQL – The percentage of leads that become MQLs
Cost per Marketing Qualified Lead – The cost associated with turning a lead into an MQL.
Sales Qualified Lead (SQLs) – The number of MQLs that gets approved by sales to work.
Conversion Rate from MQL to SQL – The percentage of MQLs that become SQLs. MQLs become SQLs when a Sales person decided that that MQL has met the BANT criteria threshold. BANT stands for Budget, Authority, Need, Time.
Cost per Sales Qualified Lead – The cost associated with turning an MQL into an SQL.
# of Opportunities – The number of SQLs that gets approved by Sales to become an Opportunity. An Opportunity is typically the sales process that a Sales person takes a prospect through after they’ve identified that they’ve passed the BANT criteria.
Potential revenue of Opportunities (also called “Pipeline” or “Sales Pipeline”) – The total dollar amount of all opportunities.
Conversion Rate from SQL to Opportunity – The percentage of SQLs that turn into actual Opportunities.
Cost per Opportunity – The cost to generate an Opportunity.
Opportunity Close Rate – The percentage of opportunities that become Closed Won.
Revenue – The amount of revenue generated from Opportunities.
Velocity – The amount of time it takes to go from one stage to the next. The faster you can convert leads to revenue, the faster you’ll be able to see a return on your marketing investment.
ROI – The return on your marketing investment is a calculation of the revenue you generated from marketing efforts divided by what you spent on marketing.
How to track these metrics
If you don’t have any specific Marketing BI tools in place, like Fortella, Tableau, Domo, Zoho Analytics, or Funnel, or your CRM reports and dashboards haven’t been built yet, then just use spreadsheets for now until you’re ready to save time managing these metrics.
While lots of companies use the metrics that we recommend our clients use, many of them don’t have clear definitions for what each of these metrics represent. So if you want to leverage these same metrics and definitions below, make sure that your marketing and sales team have all agreed on what each of these metrics are and what they represent.
The Devil is in the Details
In addition to knowing all of these metrics, it’s important to drill down further into these metrics to better understand of a specific time period or lead source is positively or negatively impacting these key metrics.
For example, we’ve seen many of our clients Cost Per Opportunity for Lead Sources that they’re introducing into their marketing mix initially yield higher costs than what the client is used to see because they need time to make that Lead Source more efficient. Knowing that that’s the case, the demand generation team is more comfortable with that outcome because they know that their more mature Lead Sources yield a lower Cost Per Opportunity.
Review Your Metrics on a Weekly Basis
Now that you have our recommendations from the key metrics that you should track, it’s important to review these metrics on a weekly basis. Whether you’re a one person marketing team or a bigger group, knowing your numbers and how they’re changing over time will protect you from spending time on marketing campaigns and projects that won’t deliver positive results. We suggest reviewing your metrics on a weekly basis so that these numbers are always top of mind and driving you to prioritize what’s most valuable to work on for that week.