How to Measure the Performance of Your B2B Marketing?
B2B marketers in today’s data-driven environment are under constant pressure to maximize their results. So tracking the results of your B2B marketing efforts is vital!
Putting to increase sales is essential at this time. That is why it is crucial to set annual marketing goals and monitor progress throughout the year. Measurable insights into campaign success can be gained by keeping an eye on multiple marketing KPIs.
The question is, though, which KPIs are necessary to monitor. After all, marketing encompasses various activities, from content marketing to business-to-business lead generation. As a B2B marketer, we’ve laid down the most important key performance indicators (KPIs) for you to monitor to supercharge your efforts.
What are B2B marketing KPIs?
In B2B marketing, KPIs are indispensable. Marketing KPIs are the measurable indicators of B2B marketing efficacy. To put it simply, they are the backbone of any winning campaign. You can see if your marketing efforts are paying off or not by keeping tabs on key metrics and evaluating your progress over time.
Why Is It Crucial To Track Your B2B Marketing KPIs?
Without B2B marketing KPIs, marketing departments can’t tell if their efforts are paying off. But there’s more than that to metric tracking.
Measuring KPIs for business-to-business interactions can also:
Aids in making data-informed decisions and in developing strategic marketing plans
It is imperative to use metrics while making marketing decisions. You’ll be able to confirm your gut instincts and make more informed choices once you’ve determined which metrics are most important to you.
Contributes to the division of resources among various campaigns
Figuring out a marketing budget is difficult without B2B marketing metrics. You can scale your most successful B2B marketing initiatives by returning funds to the channels that have proven to generate the greatest return on investment.
Helps prove your marketing strategy’s ROI
No sales can be made if the advertising department isn’t effectively working. But, the marketing department rarely gets the credit it deserves for being a critical factor in the company’s success. Using return on investment (ROI) and return on ad spend (ROAS), two common KPIs in business-to-business settings, you can demonstrate your contribution to the bottom line and claim your due credit.
Top 9 B2B Marketing KPIs to Measure
Measuring the traffic to your website is one of the more fundamental marketing KPIs. Your website is the one-stop shop online where potential customers can get all the information they need to make an educated decision and ultimately purchase from you. If your advertising isn’t luring potential customers to your website, it’s doing more harm than good. That’s because it’s simply wasting your resources without bringing any results.
Google Analytics is a more user-friendly traffic measurement tool; it can provide you with information on the total visitors, the number of unique visitors, and the referring sites. You’ll be able to tell which of your social media marketing efforts are bringing in visitors and which aren’t if you run campaigns on multiple platforms.
Marketing Qualified Leads (MQLs)
Leads that have completed a form or downloaded a whitepaper demonstrating an interest in your product qualify as marketing-qualified leads. Each company has its own standards for what makes a lead “Sales Qualified” instead of “Marketing Qualified.” In contrast to SQLs, which are closer to the bottom of the funnel and are more likely to convert after being exposed to marketing content, MQLs are still at the top of the funnel and have yet to be disclosed to any marketing content.
Identifying MQLs and SQLs separately and assigning scores to each helps determine the quality of your leads. Leads are given scores based on how likely they convert into paying customers. High-quality MQLs come from companies whose target customers closely resemble your ideal client profile. By spotting MQLs, you can also calculate how much you spent to acquire one MQL from a given campaign.
Email List Growth Rate
Email marketing was ranked as the most effective medium by approximately half of B2B marketers in a worldwide benchmarking survey. It makes sense that email would be the preferred method of content distribution among marketers.
One measure you may use to track the success of your email marketing efforts is the list growth rate. You can figure this out by subtracting the number of people who opted out from the total number of people who signed up for the newsletter. The resulting sum is divided by 100 times the total number of email addresses in your database.
Knowing if and how quickly your email send list is expanding; therefore list growth and churn are generally evaluated together. If your churn rate is higher than your list growth rate, you need to rethink your email marketing and lead generation approach.
If it’s greater than your churn rate, you should review your engagement metrics to ensure they remain high. You should also keep tabs on the inactive users who have signed up for your mailing list but have shown no interest in opening your emails. A decrease in engagement and efficiency in sending may result from having such subscribers. Be on the lookout for inactive subscribers and remove them from your list.
Cost per Lead
Lead acquisition cost should be a primary consideration if that is the desired outcome. By monitoring this metric across channels, you can assess the contribution of each to bringing in new customers.
You can get the most accurate data from this statistic by using Google Ads or, once again, Google Analytics. If the cost per lead varies widely across various marketing channels, this suggests that some channels are more effective than others. The goal of any savvy marketer is to identify the channels where their efforts will yield the greatest return.
Social Media Metrics
Regarding lead generation and customer retention, social media is a gold mine for B2B marketers. For this reason, marketers need to keep an eye on several social metrics that will allow them to make the most of this medium.
- Social shares: Low-quality content is when your followers aren’t actively spreading the word about what you’ve posted. Your content’s usefulness and relevance can be gauged by the number of times it is shared on social media.
- Rate of increase in several followers: An ever-increasing number of followers indicates that your content and other online engagement are appreciated.
- Engagement: The number of reactions (likes, responses, and shares) your social media posts get is a good indicator of how engaged your audience is.
Customer Lifetime Value (CLV)
The lifetime value of a customer estimates how much money a customer will spend on your company’s goods and services throughout their lifetime. You can use this figure to determine your marketing budget for customer acquisition and retention efforts.
CLV looks at the value created for your business and your customers throughout their relationship with you. A high CLV results from low acquisition costs and continued success in building and servicing existing customer relationships.
If you want to know if you’re spending primarily on customer acquisition, you can do a simple calculation using the customer’s lifetime value and your customer acquisition cost. It will also reveal whether or not you are losing money on potential gains. It’s best to stick to a ratio of 4:1 or 3:1.
ROI in Marketing
You should know if an endeavor is profitable before investing time and resources. This is what the measure of ROI reveals. It evaluates your marketing budget about your return on investment. This is why tracking return on investment is essential.
The ratio of sales to advertising expenditures has grown in popularity in recent years because it is straightforward to analyze. It is a standard measure of marketing efforts’ return on investment (ROI).
Customer Acquisition Cost (CAC)
The CAC measures how much money was invested by a company to acquire a new client. This metric is found by dividing the total sales and marketing expenditures by the number of new customers attained during the measurement period.
Companies with rising CAC from month to month likely have inefficient sales and marketing departments. CAC can also be calculated for individual campaigns and initiatives to provide more nuanced data.
Monthly Recurring Revenue (MRR)
The increase in potential customers is beneficial to the company. No amount of other metrics will matter if these leads aren’t converting into sales and revenue. An evaluation of marketing campaigns’ effectiveness is necessary at some point.
B2B companies with a recurring revenue model should monitor monthly and annual revenue figures. This is due to the monthly subscription model utilized by SaaS B2B companies, wherein customers pay a consistent monthly fee for as long as they continue to use the service.
B2B companies can benefit from tracking monthly recurring revenue in a few different ways:
- Improving Performance: Using MRR, sales teams can select accounts based on their potential value. So a salesperson’s pay might be affected if they receive a commission based on the MRR of their customers! As a result, the team will be more likely to close MRR deals with a high dollar value.
- Predicting Future Sales: Sales managers and company executives can better predict future sales by analyzing the MRR. Because of this, the team can better prepare for future expansion.
- Marketing budget: The company’s future strategy is determined by its revenue. Monthly Recurring Revenue (MRR) is a metric used to calculate a company’s incoming cash flow. They can use this information to prepare for future investments and business expansion.
Take Your Marketing Performance Up A Notch!
Data-driven outcomes and projections are crucial in today’s rapidly evolving technological landscape. It’s easy to feel lost when attempting to find out what data you must evaluate for your B2B marketing measurement because it varies significantly from company to company and depends on its specific goals.
Using the aforementioned marketing KPIs, you can evaluate the success of your marketing efforts. It doesn’t matter how big or small your company is. Knowing your data will help you get the most out of your marketing budget and achieve your goals.
You can improve your B2B marketing efforts in the future by tracking and analyzing this data. With the help of B2B marketing KPIs, you can streamline your efforts more confidently.
LeadSeed is a B2B Conversation As A Platform (CaaP) generating qualified lead using the “give and get” principle and building trust to develop relationships. It combines the latest digital marketing technic with proven sales methodology.