A way to gauge the success of your Business-to-Business (B2B) marketing campaigns is through reporting. This is especially the case in today’s data-driven business world. Thus, it’s your duty as a B2B marketer to compile a report that shows the efficiency of your marketing efforts, thereby further propelling company growth.
But because there are many marketing metrics, you should focus on a few that will undoubtedly give your company more executive and quantifiable insights. This way, the management will know whether the company’s marketing efforts are achieving the intended goals. Moreover, you also need to learn some B2B marketing tips that can help marketers like you gauge your campaign’s success.
Without further ado, here are the essential metrics you need to track for your B2B reporting:
1. Marketing Originated Customer
This marketing percentage determines the actual number of customers the company has obtained due to its marketing efforts. This metric is critical to the marketing team as it helps measure and determine how effective your marketing efforts have been and its impact on your return on investment (ROI).
Calculating the marketing originated customer metric is fairly straightforward. All you need to do is take the number of clients originating from a marketing campaign and divide this by the number of customers within the same duration. A higher number is ideal as it shows that your marketing initiative achieved the desired goal.
2. Marketing Influenced Customer Percentage
Not all of your customers are derived from the efforts of your marketing team. With that said, your marketing initiatives will undoubtedly help make the sale successful through its nurture programs and educational content. This metric should answer a few crucial questions, and these are:
- What is the impact of your company’s sales pipeline?
- How is sales productivity affected by your marketing investments?
- How are your marketing efforts affecting revenue velocity?
To calculate this metric, you need to examine the number of leads converted within a particular duration. Consequently, find out the number of leads who might, at some point, come across your marketing campaign. Finally, divide this figure by the number of new customers acquired within the same duration.
3. Lead-To-Close Conversion Rate (CVR)
The number of leads is an essential metric that every B2B business should be using. However, a better metric you may consider using is the lead-to-close conversion rate to determine the quality of leads. This is the percentage of the leads that eventually become customers. Knowing the exact CVR is essential as it helps you determine the leads acquired after your marketing campaign. The higher the CVR, the more effective your marketing campaign will be.
To calculate the lead-to-close conversion rate, you should divide the company’s sales by the sum of leads generated within the duration. For example, if the volume of B2B sales in the second quarter is 20, and the generated leads are 80, then the CVR is 25%.
4. Initial Customer Acquisition Cost (CAC)
The customer acquisition cost indicates how much money the company has spent to get a single customer. This is another crucial marketing metric that you need to track before presenting your B2B report to the executive management. Calculating the CAC is straightforward because you simply need to take the total marketing and sales cost within a particular period and divide it by the number of new clients the company has gained within the same duration.
The CAC is an important metric as it shows how efficiently the marketing team is operating. For example, a high CAC is viewed as a sign of operational inefficiency by the marketing team. In contrast, a low CAC shows that the marketing teams are operating efficiently. You need to calculate the CAC for a specific initiative or marketing campaign to get a more holistic outcome.
5. Return On Marketing Investment (ROMI)
As a marketing team, you’d want to know the return on marketing investment (ROMI). The ROMI helps you identify profitable investments because it measures the difference between the cost of marketing and the revenue earned from your marketing campaign. By using ROMI, you can also measure the revenue generated by a specific marketing campaign.
In calculating the ROMI, you should divide the total sales revenue generated within a particular period by the sum of money spent in marketing during the same duration. With this metric, you’ll know whether the time and money spent during your marketing campaigns are paying off and helping promote further company growth.
Takeaway
Company executives are extremely busy people, and the last thing you’d want to do is waste their precious time with ambiguous data on the company’s marketing efforts. Because of this, you need to utilize B2B reporting metrics to show how effective your marketing efforts are. This guide has discussed the most important metrics you need to use to prove that your marketing efforts have helped the company increase its revenue.
