KPIs, or key performance indicators, exist for a reason. They let you gauge the impact of your marketing strategies on your overall business goals.
And because there’s a financial limit to how much a B2B company can allow for marketing, or for any business-related activity, for that matter, knowing which campaigns work and which don’t
With the plethora of modern-day marketing tools for tracking and measurement at your disposal, not knowing what’s going on is not acceptable.
In this article, we list down 10 KPIs you need to
When measuring sales, the bottom line doesn’t tell the entire story, and simply measuring the dollar amounts you generate on a weekly, monthly, quarterly, or yearly basis may not help you spot weaknesses and improve performance.
As Salesforce puts it, “Revenue and performance are not equal and should be treated as mutually exclusive.”
Other success metrics to consider when looking at sales include:
- Sales volume
- Margin achieved
- Customer satisfaction
- Cost to acquire the sale
Leads drive sales. The more leads in the pipeline, the more opportunities to make a sale.
However, not all leads are equal in value. There are strong leads and weak leads, which makes qualifying your leads extremely important.
- Marketing qualified lead. A type of lead that has met certain requirements to make it worthy of the attention of your marketing team. (Example: a web visitor who has filled out a web form or downloaded content)
- Sales qualified
lead. A sales qualified lead has gone past the engagement process and is ready to become a paying customer.
3. Cost of customer acquisition
The cost of customer acquisition is the amount you spend to convince a customer to purchase your product or service.
An investor uses the metric to gauge the profitability of a company. Essentially, it’s the “difference between how much money can be extracted from customers and the cost of extracting it.” A B2B marketer, on the other hand, tracks the metric to figure out ways to reduce it and increase profits in the process.
To calculate the cost to acquire a customer:
Total cost to acquire new customers ÷ number of customers acquired within the period the amount is spent
If you acquire 50 customers in a month for a total marketing expense of $100, your cost of customer acquisition is $2.
4. Customer lifetime value
Customer lifetime value, or CLV, is a KPI that allows you to measure how much profit a customer brings to your business during the entire time they’re a customer. It’s a good metric to track because it shifts the focus from quarterly profits to ensuring healthy customer relationships over the long term.
The calculation of customer lifetime value, much like most metrics to help you gauge B2B marketing success, depends on the answers you require to specific questions. Which, naturally, would be different between B2B companies.
But the simplest way to look at CLV is as follows:
Revenue from customer - cost of acquiring and serving them
Other calculations factor in the average number of repeat purchases made by the same customer:
Revenue x gross margin x average number of repeat purchases
5. Sales team response time
How soon does your sales team respond to B2B queries, considering that online sales
An oft-cited lead response survey by Harvard Business Review found that the average first response time was a dismal 42 hours.
Marketing and sales platform Drift conducted a similar test and discovered the following:
- Only 7% of the total 433 companies tested responded within the first five minutes
- 55% of the companies failed to respond within five business days
While ideal lead response time varies by industry, InsideSales.com says, “The best practice is to respond to leads within five minutes.”
6. Website traffic
People visiting your site are potential leads. And leads eventually convert into customers, depending, by and large, on the quality of your content marketing.
If your B2B company runs an eCommerce site (which you should, for a number of reasons), website traffic is a metric you need to be tracking. Diligently monitoring website traffic gives you a peek into who your visitors are, where they’re from, how they land on your site - and ultimately, what they want from you.
The ability to anticipate what your customers expect to achieve from your site allows you to create targeted marketing content that appeals to your focus audiences.
7. Website traffic to website lead ratio
Traffic to a website is only good if visitors convert into leads. Knowing the ratio between the number of people visiting your site and those that stick around to become leads helps you identify a couple of things:
- The type of visitors your website attracts. Are they your target audience? Or random surfers who have no use for your product/service?
- Your site’s conversion rate. How aligned is your content to your market’s expectations?
8. Landing page conversions
The purpose of your landing pages is to entice a visitor to perform an action, such as:
- Download an ebook or white paper
- Fill out a form
- Subscribe to a newsletter
- Watch a video
- Join a webinar
- Sign up for a free trial
If your landing pages aren’t converting, however, it’s time to perform some optimization strategies that include:
- Creating content that’s aligned with the traffic source
- Add a sense of urgency into your copy
- Display trust seals at the checkout page
- Improve loading speed
- Include videos or high-quality images
- Make the call-to-action (CTA) buttons stand out
- Use clear and specific CTAs
9. Email marketing performance
Ponder for a minute these B2B email marketing statistics:
- 59% of B2B marketers point to email marketing as the most effective revenue-generating channel
- 73% of B2B marketers believe that email marketing is essential for business growth
Failing to invest time and resources on email marketing, therefore, can cost your business in the long run.
Metrics you should be tracking to gauge the performance of your email marketing include:
- Open rate
- Delivery rate
- Unsubscribe rate
- Click-through rate (CTR)
- Conversion rate
- Number of forwards or shares
10. Social media reach and engagement
Social media platforms aren't created equal. What works for one may not work for another. Meaning, not all social media channels will yield favorable results for your business.
Social media KPIs (e.g., reach, volume, exposure, amplification, comments, retweets, replies, etc.) will help you figure out where to focus your marketing team's scarce time and resources.
Successful B2B marketing isn’t rocket science. When you get down to it, it all boils down to measuring and improving your B2B marketing performance by keeping track of the right KPIs.