As a B2B CMO, you’re responsible for reporting your results to non-marketing audiences on a monthly, quarterly and often ad-hoc basis. So how do you tell marketing’s story to the rest of the rest of the business, your management team, or your board?
Here are the 10 KPIs and Metrics that capture marketing’s 3 main objectives – optimizing performance, impact, and loyalty to drive growth:
- Web Traffic and Organic Traffic Percentage
- Leads and Traffic to Lead Conversion Rate
- SQLs and Lead to SQL Conversion Rate
- MROI and SQL to Closed Won Conversion Rate
- Customer Lifetime Value and Customer Acquisition Cost
Want to automate this marketing executive reporting? Datorama can help.
Measure your performance to goal of number of site visitors to your website. This speaks to the top of funnel awareness you’re creating in the market.
% of Organic Traffic
Measure your percentage of organic traffic from social, referral, and direct, as it can be your most valuable and highest converting. Below the surface your team can level deeper breakouts to optimize bylines, social posts, PR, SEO and influencer marketing to drive this KPI.
Measure the qualified leads that marketing has generated to report on your top of funnel effectiveness. Below the surface you’ll want to see how many leads each program, channel, campaign and content/creative/keyword has contributed with all associated costs. You can then look at lead to SQL conversion and lead velocity to evaluate lead quality and intention.
Traffic: Lead Conversion %
Measure how well you’re converting your site traffic to leads by connecting your CRM and web data. Below the surface your team can analyze your paid and organic campaigns together with lead conversion pages.
SQLs (or Opportunities)
Measure your marketing-sourced and marketing influenced opportunities with all associated costs and pipeline values from your programs and sales inputs. Just like leads, you’ll want to also go below the surface to analyze each of you programs, campaigns, content and conversion pages by SQL, cost per SQL and SQL velocity to take control over this KPI.
Lead: SQL Conversion %
Measure how well you’re converting your leads to SQL opportunities. Below the surface your team can optimize nurturing campaigns, customer journey planning, content engagement and sales readiness to improve this metric.
Marketing Return on Investment (MROI or ROMI)
Measure how well you’re converting all of your marketing resources and spend into closed-won revenue for the business. The standard definition of MROI is (Marketing sourced revenue – Complete Marketing Costs) / Complete Marketing Costs.
Revenue: Your marketing-sourced revenue will generally come from your CRM. Depending on your business model, you might use your actual billed revenue (monthly recurring revenue collected or MRR), your projected annual revenue (annual recurring revenue or ARR), or Lifetime Value Revenue (ARR x your average customer lifetime cycle). Be consistent in your measurement and collaborate with finance and sales operations to stay aligned with other departments’ method measurement.
Marketing Cost: Your marketing costs can include marketing spend, marketing technology costs, headcount, travel and any “other” expenses. Be consistent and connect with finance and/or marketing operations to make sure you’re aligned.
Tip: Measure MROI over a long enough period to adjust for any seasonality in your business.
SQL: Closed Won Conversion % (Metric)
Measure how well you’re converting your SQL to closed won deals. Below the surface your team can optimize nurturing campaigns, customer journey planning, content and sales readiness to improve this metric.
Customer Lifetime Value or Lifetime Customer Value (LTV or LCV)
Measure the long term impact of your marketing on the business by incorporating LTV. To calculate LTV, multiply your ARPA (average revenue per account) by your average customer lifecycle (e.g, 3 years)
ARPA: Your marketing-source ARPA will come from dividing your marketing-sourced and/or attributed revenue by the number of closed won accounts within your reporting window.
Customer lifecycle: The average amount of time your customers stay subscribed to your service or offering. This will be measured in months or years depending on your market and business model. Again, sync with your finance team to ensure consistency.
Tip: Measure LTV over a long enough period to capture an accurate snapshot of your customers’ lifecycle and ARPA.
LTV : CAC (Ratio of Lifetime Customer Value to Customer Acquisition Cost)
Ensure that your customer acquisition cost is at appropriate investment level to create long term, healthy customers to grow your business. A 3:1 or 4:1 ratio is generally targeted, but consult with your senior management peers, as different stages of growth or industry factors may justify a different raio.
Customer Acquisition Cost: Divide your total number of marketing-sourced and/or marketing influenced closed won accounts in the reporting period by your total marketing costs (see above) to acquire each customer.
Tip: Measure LTV and CAC over a long enough period to capture an accurate snapshot of your ratio.
Now that you have your 10 B2B CMO KPIs and metrics – learn more about how to automate them for always-on access, and to delve into their key drivers using Datorama.
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