Better marketing metrics overcome the sceptics
It’s a common predicament many B2B marketers find themselves in; how do you impress your boss with those all-important ROI stats that prove the value of your marketing efforts and their financial impact?
In a fast-moving industry that sees new marketing channels being added to the mix all the time, knowing how to measure your marketing activity is becoming increasingly difficult. In a recent article in CustomerThink, Jack Dean, a B2B sales trainer and former Fortune500 CFO, goes as far as to say that the industry’s “dumbing down” the meaning of ROI, arguing that it’s become a valueless term without any kind of measurement or evidence of financial impact behind it. Furthermore, a survey compiled by Seismic and MarketingProfs revealed that 64% of B2B marketers believe their sales and marketing team’s influence on the bottom line was important. It’s therefore crucial to nail the right KPIs now more than ever!
Don’t sweat the small stuff
Here at Octopus Group, we’ve done the hard work for you and compiled the six key marketing metrics that your boss actually cares about. And not only that, we’ve calculated the mathematical formulae that you can attribute to the bottom line…now we’ve got your attention!
Here are the KPIs you need to demonstrate to show marketing’s true impact on the bottom line:
- Customer Acquisition Cost (CAC) – The price you pay to acquire a new customer
- Marketing % of your CAC – How much of the customer pie can you claim?
- Customer Lifetime Value to Customer Acquisition Cost Ratio – The relationship between the lifetime value of a customer and the cost of creating them
- Time to payback your CAC – The time it takes to earn back the cost of acquiring customers
- Marketing-Originated Customer % – The percentage of new business that’s directly driven by marketing
- Marketing-Influenced Customer % – Marketing’s influence on leads, at any time, during the buying cycle
So there you have it. These six metrics will help you fine-tune all of the moving parts within your team into something that your entire organisation can resonate with. Find out more on how to calculate these metrics and why they influence the bottom line by downloading our eBook; Don’t Sweat the Small Stuff.