Being a data-driven marketer is critical to business success. Traditionally, marketing has been seen as the department that spends a large amount of money, difficult to track, and unknown territory to sales, let alone the rest of the organization. Fast-forwarding to present-day, alongside the emergence of companies like HubSpot, Domo, Marketo, etc. has completely changed the way we view as well as execute marketing.
That said, marketers today know the importance of tracking and measuring the progress as well as the performance of their efforts (e.g. paid campaigns, SEO, content marketing, etc.) – understanding KPIs are instrumental to making the decisions that will benefit business objectives. There are multiple metrics that every marketer should be tracking, e.g., CPA, CPL, CAC, etc. but in this blog post I want to focus on just three and how to leverage them to understand marketing’s impact on the business.
Here are three marketing metrics I’ve consistently tracked throughout the years:
MQLs (Marketing Qualified Leads)
Define what an MQL means to your business and then build out campaigns to ensure that they align with your definition. For instance, a B2C company may measure a MQL as email subscribers; whereas, a B2B company may measure a MQL as forms filled out to download a whitepaper specific to solving a pain point they’re dealing with. What matters most is that you provide parameters that will help foster marketing, understand what’s working and what’s not.
Key takeaway: Define MQL and ensure there is alignment with sales and also business objectives.
Visit to Lead Percentage
A recent demand generation study done by HubSpot and Qualtrics states, “Companies meeting or exceeding their revenue goals attract significantly more website traffic and generate more leads, Marketing Qualified Leads (MQLs), sales opportunities, and customers than those that aren’t…nearly 80% of companies not meeting their revenue goals attract 10,000 monthly website visitors or less. For those exceeding their revenue goals, nearly the reverse is true; 70% report attracting more than 10,000 visitors per month.”
Additionally the study also states that the average number of leads for companies exceeding their revenue goals is 1,000 – 2,500 per month, while companies not achieving their revenue goals only average 100-500.
Key takeaway: Track and calculate the number of visitors coming to your website and how many actually become qualified leads, i.e. visitors/leads x 100 = visit to lead percentage
Lead to Customer Percentage
Generating leads is one thing, but measuring the quality and also the number of leads that actually convert into paying customers is another. Of course, the obvious way of thinking is that the more visitors you generate to your website, the higher potential of leads you’ll be able to generate. And, the higher number of leads you generate, the higher potential of customers you’ll convert. However, dive in deeper to looking at the number of conversions per each channel (e.g. social media, paid search, organic, etc.) and understand which channel provides the best qualified leads as well as conversions, i.e. forms filled out. Some mistakes I’ve seen marketers make is they will only measure the number of conversions per channel without tracking that lead all the way through to the LTV. That’s the key to truly knowing which channel provides the best leads and also ROI to your business.
Key takeaway: Lay out each channel and track the number of leads that convert into paying customers, while also measuring the LTV of each customer. This will help tell you which channel is the most effective to foster business objectives.
Have more suggestions? Share them below.