As marketing becomes ever more numbers driven, marketers must master their knowledge of key performance indicators (KPIs).
In part one of this series, we explored seven KPIs in the business category. In part two, we discovered 10 customer-specific metrics. In part three, we explored 10 KPIs that measure marketing performance.
This is the fourth and final part of this series, in which we’ll explore 11 more marketing KPIs.
The significance of each particular KPI depends on your company and its goals. New software programs can effortlessly track these KPIs and many more, and help you prove your marketing ROI.
1. Cost Per SQL
Calculating this cost depends on another group of variables, including salesforce compensation, tools, trade shows, and more. After this KPI, it’s essential to measure that which matters most: how many of these leads convert into opportunities, and how many of those actually impacted the business.
2. Cost Per SQO
This is another important barometer. If your cost per SQO allows for a healthy profit margin, excellent! But if your cost is too high, it’s an indicator that something isn’t right. For example, sales might be overly selective in qualifying leads, and rejecting quality opportunities.
3. Marketing Driven Revenue
This metric is essential to calculating your marketing return on investment. Many companies face a challenge calculating MDR because of difficulties with attribution and discerning the true origin of a sale. For example, a salesperson might record a lead as sales generated, when in fact it was generated by marketing. This could also happen because they don’t have visibility into all data.
4. Sales Driven Revenue
SDR can be easier to calculate then MDR. It’s important to ensure that overzealous salespeople don’t take credit for leads that were generated by marketing. System automation, and minimizing the amount of human-entered data, can help ensure more accurate numbers, and accurate understanding of your return on investment.
5. Combined Revenue
Revenue generated by combined effort of marketing and sales.
6. Non-Attributed Revenue
This tracks revenue that happens organically, on its own. Certain types of companies attract more non-attributed revenue than others, and it can be rewarding to drill down into this metric to better understand your source of leads. It also could indicate revenue that cannot be attributed and if this bucket is high in volume it potentially could be caused by gaps in data and processes.
7. Conversion Rate TR to MQL
This is a qualitative metric, and helps you understand the quality of your marketing efforts. For example, if an email campaign generated 10,000 responses, but only one lead, you’re engaging with the wrong audience
8. Conversion Rate MQL to SAL
This measures whether marketing is generating the right kinds of leads or sales. If marketing qualifies in a prospect, but sales rejects it, marketing needs to communicate with sales to better qualify and deliver more valuable leads.
9. Conversion Rate SAL to SQL
This monitors one sales accepted prospects, but then later disqualified and rejected them. If this rate is low, it means the sales department is not doing its due diligence. While the sales team is hoping to discover good leads, it’s not looking at the audience carefully enough.
10. Conversion Rate SQL to SQO
If the rate is high, sales is doing a good job of qualifying opportunities. If it’s low, either the sales team is doing a poor job, or it was given incorrect information. By this point, you should have a rather scientific funnel: if we generated 10,000 leads, it will lead to 20 close closed deals and $10 million in sales.
11. Win Rate (Conversion Rate from SQO to Won)
And finally, the sale! A proposal has been sent, and the contract signed. If this rate is low, reasons might be: your price is too high, demand is too low, or salespeople aren’t being effective. If you have a high win rate, you have a good product and a good team.
Conclusion – to calculate the effectiveness of your marketing, you need to measure effectively. KPIs are the key to measuring, monitoring, and maximizing your marketing ROI.