Marketers are often criticised for not speaking the same language as the CEO. Isn’t it about time we did?
Does that mean we need to learn Latin then? Actually, no. Just some basic b2b marketing metrics and an understanding of financial terminology.
What numbers do CEOs really care about then?
Surely the biggest indicator of Marketing’s contribution is impact to revenue. With the advent of digital marketing, attribution modelling is becoming far more accurate. However there are plenty of other marketing metrics that will help you to understand the impact of your marketing too.
Here are some core b2b marketing metrics you should care about:
- Cost per lead – how much it costs to acquire each lead into the top of your sales pipeline?
- Pipeline value – what potential future revenues are sat in the sales pipeline?
- Cost per acquisition – how much it costs to move each prospect through the sales pipeline until you acquire them as a customer?
- Average sales cycle – how long does it take to move your average customer from prospect to closed deal?
- Average customer value – how much is the average customer worth in revenue?
- Lifetime value of a customer – how much is each customer worth to your business over their lifetime of being a customer?
- After sales support costs – what does it cost to keep your customer’s happy once they have bought your product?
Once you have got to grips with these top line metrics (and created your CEO’s marketing dashboard), you can start to get a little more granular with your metrics. This will help you to work out how to increase your contribution to revenue i.e. improve your performance.
For example understanding the value of your sales pipeline is good. Analysing the value at each stage of the pipeline is even better. Creating a conversion rate benchmark whereby you know the volume of leads needed at the top, to get the sales you need out the bottom, better still.
Cost per acquisition is good, but what is the cost per acquisition per marketing tactic employed?
This extra level of detail in your b2b marketing metrics is what makes up your marketing dashboard. Without it you may be making educated guesses at best when it comes to marketing planning.
Are you using these marketing metrics to keep your CEO happy? Let us know what else you have added to your marketing metrics dashboard in the comments below.