B2B marketers unanimously agree that quality data empowers them to deliver the right message to customers at just the right time – Dun & Bradstreet
The value of applying marketing data to B2B campaigns is undeniable. Businesses that adopt a data-driven approach to marketing have an advantage over the competition, and are more likely to increase profitability. In fact, they are six times more likely to be profitable year-over-year.
The case for using marketing data has never been stronger, and B2B companies that can master best practices for collecting, analysing, and reporting on data are most likely to thrive now and into the future.
In order to become data-focused with their marketing campaigns, B2B marketers must first understand which metrics are most important to them. Gone are the days when ‘total website traffic’ was a sufficient metric to analyse the success of a campaign. Now, marketers can arm themselves with in-depth, insightful data on the specifics of each campaign. This can then be used to inform not only marketing initiatives, but also wider business decisions.
Which Marketing Metrics Should B2B Companies Measure?
In order to get the most out of marketing efforts, B2B companies should establish clear business goals based on results-based marketing metrics. Some of the results-based metrics that can inform these decisions are as follows.
1. Conversion Rate
Your conversion rate is the percentage of website visitors that complete a desired goal. If your site has a high conversion rate, you can assume that your marketing is performing well overall, as people are responding to your campaigns and acting on your message.
A ‘conversion’ can be any action that you want on your website. Typically a conversion should measure a specific, measurable jump in the sales funnel, for example, a sign up to a newsletter, resource download or a request for a demo. Consider which actions are valuable to your business and that indicate interest in your products or services. These can then be set up as conversion actions.
Remember that not all leads will move down the sales funnel to purchase, in fact most of them won’t: 2.35% is the average conversion rate, and anything above 5% is considered a good conversion rate. The best way to increase your conversion rate is to set up conversion tracking to measure the different actions a website visitor takes before making a sale. With this data, you can start to identify where potential customers are dropping off and look at reducing this drop off through your marketing messaging and campaigns.
2. Return on Investment (ROI)
ROI is a calculation that compares the amount of money you spend on a project with the amount of revenue you gain from it. In applying this to your marketing campaigns, you can ensure that the value they are bringing in outweighs the costs incurred. This is one of the best metrics to use to show other c-level executives that they should be investing more in marketing – and exactly which campaigns they should be investing in.
If you compare ROI data between campaigns, you will be able to see which are the most effective in generating revenue, and as such, where marketing budget should be assigned. Simply put, measuring your ROI is one of the easiest ways to understand what actually works (and what does not) with your campaigns.
3. Marketing-Qualified Leads (MQL)
Marketing Qualified Leads are leads that are generated through marketing campaigns, such as Google Ads, SEO and Social Media. These leads have found your website, and have shown some interest in your business but they are not yet ready to buy, and so, have not converted. While they may not be ready to purchase yet, these leads should not be discounted. They are still valuable to your company as they are interested in your business’ products or services, and they meet early-stage criteria of a potential customer.
The definition of a Marketing Qualified Lead is up to the business to decide. Relevant information, such as company size, industry and annual revenue, are all considerations that may identify a Marketing Qualified Lead. If your business has a lot of Marketing Qualified Leads, this is an indication that your marketing campaigns are effective in attracting potential customers to your site and sparking interest in your company’s products or services.
4. Sales-Qualified Leads (SQL)
A Sales Qualified Lead differs from a Marketing Qualified Lead in that it has been nurtured along the sales funnel and is more ready to purchase. At this point, the lead will most likely be passed on to the sales team, who will be responsible for closing the sale. Like Marketing Qualified Leads, Sales Qualified Leads should be identified by the business on the basis of their own sales funnel. For example, a Sales Qualified Lead may have they requested a demo, clicked an important link in an email, or submitted an enquiry on your website.
Aligning sales and marketing leads to 38% higher sales win rates. Marketing Qualified Leads and Sales Qualified Leads are both essential element of the sales funnel. Both should be taken into consideration when evaluating the success of a marketing campaign. If you have a lot of Marketing Qualified Leads but not many Sales Qualified Leads, you may need to do more work in nurturing leads through the sales funnel. This can be done by altering the messaging and content for these contacts.
The most important thing to takeaway from this article is to remember that marketing metrics are vital in informing the success of any campaign. Ensure you are not wasting your marketing budget on things that don’t work by measuring key conversion-focused metrics that are important for your business.
For more information on this article, or for wider b2b digital marketing advice, get in touch with the Lead Agency. We’re B2B marketing specialists with wide-reaching experience in a number of on and offline channels.