If you’ve been following this blog post for the past 3 months or so, you’ve arrived at the last entry of the lead conversion Blueprint (and if you are just joining this thread, you can catch up here).
By now, you should be ready to launch your pilot campaign.
But remember, marketing is testing, and if you aren’t tracking and measuring the performance of your campaigns there isn’t much point in launching it at all.
So, without further ado, here are 6 essential marketing performance indicators that every business needs to track and measure for B2B sales leads.
I recently read this assessment of one company’s marketing: “June turned out to be the second best month in our history. The new marketing approach is either working or this is simply an anomaly.”
Obviously, this business isn’t measuring its marketing performance.
Too many companies make the mistake of spending time and resources building well-crafted campaigns only to launch them without the ability to measure. Don't make be this company. (Tweet This!)
Your prospects interact with your marketing in so many different ways, and to not understand which channels, tactics, and campaigns are generating the most traffic and converting qualified leads is like flying blind.
There are countless tools and means by which you can measure your marketing, and just as many key performance indicators (KPIs). Like everything else, you need to determine which tools and KPIs are most relevant and important to your business – one size does not fit all.
That said, there is a basic, core set of KPIs that every business needs to track and measure for B2B lead generation and conversion. They are as follows:
1. Website Visitors
You can’t generate a lead if there is no one there to convert.
Increasing traffic to your website needs to be an ongoing endeavor. But just as important as it is to track (and increase) your web traffic, you also want to know where they are going on your site. Specifically, are your visitors going to the pages you’ve set up for lead conversion, i.e., your landing pages.
2. Lead Conversion Rate
Driving traffic to your landing pages is the goal, but once there you want to convert them to contacts, or leads.
How many, or what percentage, of your visitors are converting? This can be measured globally, on a site-wide basis, but also at the page level. Pay attention to the pages that are converting the best as well as specific assets on the page, such as the CTA and your forms. Try to understand why they are outperforming other pages and replicate the design on poorer performing pages to see if it boosts conversion. Landing pages should be converting at a 20% rate. If not, look at what may be wrong.
3. Customer Conversion Rate
Of course the ultimate measure of success is acquiring new customers and revenue.
Be sure to track the percentage of your leads that convert to paying customers, and always be working to increase this rate. Look closely at the leads that are converting – do they have themes, traits, user behaviors in common? Clues like this allow you to better target your prospects at the at the beginning of the customer buying cycle.
4. Customer Acquisition Costs
Customer acquisition costs are the dollars spent marketing your business per new customer.
For example, if a banner ad costs $100 and brings in 10 new customers, the customer acquisition cost (per customer) would be an average of $10.
Track what you spend in a certain time period on sales, marketing and promotional items along with the number of recent customers you acquire during that same time frame or directly from the campaigns you are running. Now divide your expenses by the number of new customers. Obviously, the goal is to have the lowest customer acquisition cost as possible as this contributes to your profit margin.
5. Customer Attrition
This term is also known as churn, and describes the fact that businesses can lose customers as a natural part of operations.
There are different ways to determine this number depending on how your business operates.
If your sales and customer life cycle is short, you’ll want to measure which customers stop buying from you on a permanent and intermittent basis. This way, you can stay in touch with those who stop buying to find out why and fix the problem.
If your business works on a subscription basis or deals with long-term contracts, look at the number of canceled subscriptions or contracts within a certain time frame. For example, if you had 50 active subscriptions at the start of the month and 2 of them cancel during the month, your customer attrition rate would be 4% (2 divided by 50).
6. Customer Lifetime Value
Customer lifetime value equals what your customer spends over a lifetime using your product or service.
You want to know the value of your customers over the long term so that you can tailor deals and benefits toward the ones who will most often help you reach sales targets. These are your best customers.
Once you've determined the average lifetime value of your customers, compare these statistics to your customer acquisition costs to see if you are spending more money marketing to customers than they are spending on your products or services.
Ensure that you are able to test and measure the effectiveness of your marketing so that you understand what works, and more importantly, what doesn’t work, in order to get the best return on your time and investment.
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