Measuring B2B Marketing ROI: 10 Things to Track
B2B marketing ROI remains just a concept, unless you track your activities and results. To prove marketing value and ROI, consider all the metrics that could tell your story. Use this list to make sure you cover everything you could be tracking.
How Many of These B2B Marketing Measurements Do You Track?
Most marketers know the standard metrics, such as marketing ROI, click-through-rate, customer lifetime value, and customer acquisition cost. This list equips you with other accepted metrics to adopt when determining the worth of marketing.
Metric 1 – Marketing Percentage of Customer Acquisition Cost
This metric helps you understand how much you’re investing in marketing to acquire customers. As your company grows and tries to manage costs, it’s vital to track how much money you’re spending to reach out to new customers.
If you see a hike in M%-CAC, it may indicate you’re spending too much on marketing, or you’re spending more on marketing to generate more qualified leads.
Metric 2 – Negative Feedback on Social Media
Negative feedback is an adverse action taken by a customer online such as negative comments, disliking posts, or reporting your page or account. It’s important to track your feedback, because social media such as Facebook, Instagram and Twitter consider these metrics when deciding whether to increase your organic reach or not. If you want your social media marketing tactics to do well, track your negative feedback and keep the number minimal.
Via Page Insights, you can track negative feedback; however, you can’t see the breakdown. If you’re determined to know what negative actions were taken, try downloading the excel report in the Fan Reach section.
Metric 3 – Single Attribution (First/Last touch)
A standard method of tracking marketing tactics results is single attribution — first or last-touch attribution. This gives all the attention to the first or the last source that touched the salel.
If you select first touch attribution, this puts all the value to the first source that touched the deal. Practically speaking, this is the lead source. For example, a prospect visits your website for the first time, reads a blog, and then reads another blog and purchases. The first blog will receive revenue credit.
Similarly, last touch attribution gives revenue credit to the last source that closed the deal. For example, if a customer reads two blogs and then signs up for a product or service demo, the demo will get the revenue credit, not the blogs previously read before signing up for the demo.
Metric 4 – Twitter Engagement Rate
When Twitter released new metrics in 2014, one of them was the Twitter Engagement Rate (TER). This metric is about keeping cursors moving quickly on your Twitter activity to increase your tweets’ engagement.
Calculate TER by estimating how many people interacted with your tweets, and divide the number of engagements by the number of impressions to get a ratio. Engagements include retweets, replies, favourites, link clicks, permalink clicks, shared via email, embedded media clicks, detail expands, user profile clicks and followers.
Twitter Engagement Rate can be used as a directional performance indicator to provide tweets that Twitter followers will want to engage with.
Metric 5 – Goal Value and Goal Completion
Goals in Google Analytics measure how well a website or app fulfills target objectives. A goal simply depicts a completed activity, such as a conversion, that contributes to your business success. Defining Goals in Google Analytics (GA) is an essential component of successfully measuring your digital marketing efforts.
In Google Analytics, you create goal completions and goal values. Goal completions are the absolute number of conversions. The total goal value is the total profit generated by goal conversions on the website.
By multiplying the number of goal conversions by the value you assigned each goal, you calculate the total goal value. These are important marketing metrics for any business and show how digital marketing generates revenue.
Metric 6 – Marketing Qualified Lead (MQL)
That a prospect has shown interest is simple to spot, but marketers may be unsure if they are potential buyers for the product or services. They might not be not confident enough to pass the leads to the sales team.
The Marketing Qualified Lead metric is the number of prospects who’ve indicated an interest in your company’s products or services by doing something that’s marketing-initiated: attending a webinar, or downloading a white paper, for example. They satisfy certain criteria that define a qualified lead, according to marketing scoring.
Here’s a scenario you may be familiar with: Marketing sends requested leads over to Sales, who then rejects many as unqualified. This is why it’s important to separate your MQLs from Sales Qualified Leads (SQL). With scoring and MQLs, you’ll improve your sales efficiencies by filtering out the leads that are not qualified. Otherwise, you risk damaging marketing credibility.
Metric 7 – Sales Qualified Lead (SQL)
The marketing team’s job is to make sure the sales bucket is full of high potential leads, while the sales team’s job is to close new business deals from those leads.
The issue is that often those teams aren’t aligned, and it’s a fact that not all leads are qualified leads. Yet sales teams may spend innumerable hours digging through lists of leads that marketing has passed on to them. Hence it’s crucial to bifurcate unqualified leads from potential leads as agreed by Sales.
Working together is the key to successfully identifying the perfect Sales Qualified Lead. A standard model used is BANT: Budget, Authority, Need, and Timeframe. This set of guidelines helps to learn more about a Sales Qualified Lead’s traits, so the sales and marketing teams can work together to grow the business. And of course, the account’s intent behavior data also helps prioritize leads and engagement resources.
Metric 8 – Churn Rate
The churn rate is the number of customers or subscribers who withdraw their subscription or cancel their account with a company during any given time period. It’s a prime factor in deciding the steady-state of customers a business will sustain.
This metric is generally used in contractual services and is essential to measuring customer lifetime value. This factor can be used to create marketing strategies and campaigns that decrease the company’s churn rate. Some companies have teams dedicated to uncovering issues that increase churn rate, so they can proactively suggest initiatives to help reduce it. Marketing contributions in this regard can include hassle-free onboarding, providing better knowledgeable content, and a better user experience.
Metric 9 – Page Authority (PA) and Domain Authority (DA)
Page Authority and Domain Authority are two metrics minted by Moz, an inbound marketing icon. Page Authority foretells how well a particular page will answer particular questions. It contributes to rank on search engines, and scores using a 100-point scale.
Domain Authority depicts how well a website will rank on search engines and also scores on a 100-point scale. Use these two metrics to compare your website to others to predict the possibility of outranking them in the search engines.
Metric 10 – Share of Voice
If you positively influence the volume of conversations about your business in the marketplace, you may outperform your competitors when it comes to branding and conversions. That’s managing your share of voice.
It’s measured as a percentage of reaction to marketing activities, brand reputation and marketplace buzz about your business compared to your competitors. Generally, this factor isn’t measured with confidence, because more tangible metrics like awareness and conversion rates take over. However, share of voice is just as crucial to building brand awareness and increasing conversion rates.
Why Marketing Metrics Matter to Business Growth
Revenue leaders must tell the story of what Marketing brings to a business. That knowledge helps company leaders allocate resources and plan for growth. That’s why knowing and measuring marketing metrics that align with your business goals will contribute to your business success.
Data, Metrics and the True Influence Summit
If data and metrics matter to you, the True Influence Summit on January 21 will interest you. We’re bringing an assortment of experts together to look at all angles of marketing, sales and data alignment. See the latest agenda for this half-day, virtual event.