Although the economy is showing signs of recovery, organisations are still cautious about investing large sums of money unless they know that they are guaranteed positive returns. This wariness to invest includes their annual budget allocation and their internal departments. If a department can’t prove its ROI, then it’s very unlikely to see its budget increase over the next twelve months.
This need to deeply analyse all marketing activities has been discussed previously in our blog, and we’ve even mentioned the need for marketing automation software in order to enable such investigations. However, so far we’ve not specifically discussed the metrics that it’s possible to measure with marketing automation software.
In our publication, B2B Marketing ROI - Measuring Success, you’ll not only find a diagram of the B2B sales funnel, but also information on how best to approach a modern sales cycle. As leads are guided towards a sale by content and targeted messaging, marketing automation software will store information including their website visits, downloads and lifecycle stage etc. This means that when reviewing a marketing campaign, it’s possible to run reports of all the leads/sales and see information such as…
• Engagement rate: the number of prospects that engaged with your marketing channels
• Lead rate: the number of prospects that converted to a lead
• Conversion rate: the number of leads that converted to a sale
• Closed business: the total revenue generated
• Pipeline: the number of leads that end up on the forecast
Using this information to remove underperforming channels and content means that marketing practices can be continually improved to reduce costs, increase leads and generate larger ROI. They can also be used to inform future marketing techniques/campaigns in order to produce the best results. When a marketer approaches senior management with these types of results, it’s likely that they’ll see their budget rise.
To see how we have generated excellent marketing ROI for one of our clients…