Running Up the Numbers
Marketers are all about creating breadcrumbs and slight nudges within content to drive leads down their funnel into sales. It’s an essential role in the success of any business in the technological era, but that fact is sometimes lost on those outside of marketing. In fact, 73% of executives don’t believe that marketers are focused enough on results to truly drive incremental customer demand.
That’s why measuring KPI, or Key Performance Indicators, is crucial to proving your value. But you collect so much data -- website visits, conversion rates, generated leads per channel, engagement on social media platforms, blog post shares, email click-through rates, etcetera etcetera. You can’t just dump all of these metrics onto your C-Suite. They don’t want to know about the minutiae that gets them to the overall business goals, they want to cut through the numbers and see upfront that you are making a valuable impact on the bottom-line of the company goals.
To reconcile this, you want to demonstrate KPIs like sales and leads, metrics that point directly to how marketing is aligning with the company’s goals. Here are a few of these essentials KPIs that will prove your team’s worth to the boss.
What to show: 3 Metrics that your boss will love
1) Customer Acquisition Cost (CAC)
The CAC is the total average cost that your company spends to acquire a new client. When you know how much your company is spending per new customer acquired, you are showing the effectiveness of your sales and marketing approach. If you have a low average CAC, then your approach is effective, and your boss will be able to clearly see that in the numbers.
2) Marketing Originated Customer %
This ratio shows what percentage of new business is coming in through your marketing efforts. When looking at this number, your boss will immediately see that your marketing efforts have been successful without all of the fluff involved in most key metrics. The percentage is based on your sales and marketing relationship and structure, so the ratio here will depend on the type of business model you have. If your company has an internal sales team and a lead-focused marketing team, you may be looking for 40-80% marketing originated customers.
3) Marketing Influenced Customer %
Your marketing team’s influenced customer percentage takes into account all of the new customers that marketing interacted with while they were leads, at any point in the sales process. This metric goes beyond just customer acquisition but measures the impact that marketing has on a lead during the lead’s journey through the buying lifecycle. Your boss can get a clear picture of how effective marketing is at generating new leads, nurturing existing ones and helping sales close the deal. This is the big picture of the marketing-to-sales impact, so be sure to add this one.
SHAMELESS PLUG: If you want to know more key metrics to include in a report to your C-Suite, download our free e-book which will give you a deeper look into what these metrics mean and how to calculate them.
How to show it: proving your value the SMART way
Now that you have assembled a T team and instituted educational resources to beef up their skills, it’s time to start pulling data and creating reports that will paint the picture of what your team is working on and how far you’ve come. Having these regular check-ins that highlight your successes (and even failures) is paramount to staying the course and keeping others on board with your vision.
Assembling these reports needs to be systematic. Throwing down a pile of papers with numbers on them isn’t going to inspire anyone. No, your KPIs need to be clearly understood by everyone involved in making them. It’s actually very easy for people in different departments, and even within your own, to read quantified KPI with a completely different interpretation of how it relates to your goal. You need to make sure that your KPIs are SMART:
Having SMART KPIs will effectively have everyone reading data with the same goal in mind, saving you time and the uncertainty of whether your demonstration is meaningful.
Once you have set your SMART goals, you should utilize the organizing power of report assembling and organizing platforms like Google Analytics, Google Data Studio and Hubspot Reports. These platforms will organize and interpret your data into clear, easy to understand visuals that will quell any misinterpretation around your impact and what needs praise or improvement.
Where to go: Calculating the ROI on EVERYTHING
If you remember my KPI measuring email, you’ll recall that the deepest, most impressive level of metric tracking gives a full holographic spread of marketing impact and the benefit of future investment into the marketing team. This spread includes things like Marketing ROI, Customer Acquisition Cost, Marketing Influenced Customer % and interaction trends.
Sound familiar? Yep, you’re already here, a master of inspiring, creating and measuring substantial marketing impact within your business. And when you turn your interaction data and hard dollars into metrics for your boss, you’re pushing the case for reinvesting the new revenue back into your department to make an even greater impact, and thus bigger profit.