Insight
The most impactful marketing performance metrics for marketers on the journey of proving marketing’s value
Earning the confidence of the CEO has always been an objective for marketing teams – and to do this there is a need to be able to prove the value of marketing. However, without being able to measure the right metrics, it’s difficult to demonstrate marketing performance. Data is a powerful asset to support this objective and platforms such as Domo and Power BI are great places to create dashboards to demonstrate marketing attribution.
As starting point for marketers on this journey of proving marketing’s value, we’ve pulled together our top five metrics to look at including in your dashboards:
1. Leads by Channel
This one may seem obvious, but in our experience, many organisations don’t consider breaking down leads by channel. This KPI is arguably one of the most valuable as you want to prove to your leadership team which channels are providing the best ROI.
2. Quality of leads: Bounce Rate and MQL: SQL Ratio
Developing a high number of leads every month? Amazing, but how many of them are converting into closed deals? When it comes to marketing efforts it’s important to invest your budget into valuable channels, to ensure you attract the right buyers. Bounce rate is a great metric to measure this, and further along in your sales funnel MQL:SQL ratio will allow your Sales team to qualify the leads successfully.
* MQL:SQL Ratio = (Total #SQL/#MQLs)
3. Customer Lifetime Value (LTV)
This is a great metric to refine your marketing retention strategy, as we know not all customers invest in our products or services equally. LTV allows for calculation by channel, which can help to demonstrate which acquisition avenues are resulting in conversion to the most profitable customers.
*Average Order Value X Number of Repeat Sales X Average Retention Time
4. Marketing Influenced Pipeline and Marketing Sourced Pipeline
This metric applies to organisations that may use other customer acquisition strategies, such as those that report on outbound Sales. Marketing sourced will show all leads generated, while Marketing Influenced pipeline is the metric which is key to drill down into to understand which leads were nurtured by Marketing through the Sales cycle. *Note, it’s important to calculate this by count and revenue value for your C-Suite to clearly see revenue growth.
5. Marketing ROI
Saving the best to last – Marketing ROI is probably the most important KPI to prove to your C-Suite. MROI allows for demonstrating the impact of every cost associated to marketing spend, which will help with planning budgets for the next fiscal year. * Leads by Channel = (Total sum of leads from every channel added up).
Each and every business will find more value in specific marketing performance reports, compared to others, but remember that the most valuable of all is calculating revenue growth when it comes to proving your marketing performance to your C-Suite.
Need help with creating visualisations for marketing reports?
CRMT Digital can help with pulling data from multiple martech platforms into one easy to read dashboard. Get in touch if you need help showing your C-Suite the key metrics and proving your marketing performance.