Are you a little sick of having to explain your team's worth to your C-Suite? It can often be difficult to get other areas of your business to understand the impact that marketing has on the bottom line. That's why you need to be data-centred in your marketing. It's time to prove your worth with cold hard facts.
In our next two blog posts we will share 10 key KPIs that every marketer needs to track. These numbers will help you optimise campaigns and understand the value that marketing brings to your business.
How much money do your marketing campaigns generate? This is a simple question that often requires a slightly more complicated answer and causes confusion and irritation for marketers.
Understanding how much revenue you can attribute to a specific campaign is essential in understanding what campaigns are effective and in proving the worth of your marketing to other areas of your business.
But how can you directly attribute a sale to one marketing campaign or piece of content? Customers often interact with your brand at multiple points before making a purchase so how can you accurately calculate your return?
There are several standard formulas for calculating revenue. You can use a single-touch attribution model that focuses on the first or last piece of marketing content a customer interacts with or you use a multi touch model that splits the revenue generated between all the marketing campaigns a customer interacts with.
Learn More About The Various Attribution Models In Our Blog Post: Prove Your Marketing Impact: The Basics of Marketing Attribution
With marketing revenue attribution, you’re looking beyond the number of leads you close to how much of your revenue was influenced by your marketing efforts. Tracking this information is a great way for your team to show the value of its efforts.
How much does it cost to acquire each lead? How many leads are you generating with each campaign? What is the value of those leads?
This is an essential metric for understanding where to make improvements in your funnel. If you are generating a lot of leads but they are not converting you know what you have a content gap and are missing the opportunity to make sales.
When you view the cost for lead acquisition you can build a clearer picture of the overall ROI of your marketing efforts.
For example, let's say you own a refrigerator sales company. You invested in the following marketing efforts this year and this was the results:
|Campaign||Cost||Leads Generated||Leads Converted||Value of Customer|
For example here we can see that the tradeshow was the most expensive marketing effort, but it generated the highest quality lead. Whereas the email marketing campaigns actually lost money. In this case, your company would want to rethink investing in email marketing next year.
Your website will be the backbone of many of your marketing campaigns. It will be where you are sending your prospects to to fill out a contact form, make a purchase or convert in some other way.
Knowing your site traffic to lead ratio can help you understand what is working and what is not working on your website and optimise your campaigns.
To work out your site traffic to lead ratio you will want to look at four key metrics which should all be visible from your Google Analytics or CRM.
Don’t miss Part 2 of our Top Ten Key KPIs Every Marketer Needs to Track which will be published on the blog on Monday 13th December
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