It is a fact that not all of your initiatives will produce favorable outcomes. Some of your marketing campaigns may turn out well, while others might not.
B2B marketing is too risky for just blind leaps of faith.
This is why you need to track and measure the right B2B Marketing KPIs. By doing so, you can keep an eye on your progress and identify what works and doesn’t work.
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B2B Marketing KPIs and Their Importance
A B2B Marketing KPI (key performance indicator) is a metric that is used to measure the performance of your marketing campaigns. It lets you evaluate if your goals are being met.
It’s important for your business to keep track of your KPIs consistently. This allows you to pinpoint exactly which parts of your strategies are doing well, or maybe revise and eliminate the ineffective ones.
If you know where to concentrate your marketing efforts, you can duplicate the result you’re aiming for. You will also gain an insight into what’s stopping you from getting the results you want, so you can improve or remove them.
Setting the appropriate KPIs will get you ahead of your competitors. These metrics will help you stay on track with what really matters.
How to Choose the Right B2B Marketing KPIs
The proper KPIs must be measured against your goals. It’s only right to say that the first step in selecting the right KPI is for you to identify what you want to achieve.
Let’s say that you want to increase your sales revenue. One of the KPIs that you should track should be conversion rates.
Moreover, if you want to raise brand awareness, at least one of your KPIs should be about how often users share your posts.
Your goals are essential in choosing the relevant KPIs. They will help you decide and prioritize what you need to focus on.
B2B Marketing KPIs That You Should Track
There are many metrics that you can track, but as mentioned earlier, the KPIs you choose depend on your objectives.
Here are some of the most important B2B Marketing KPIs that you should be tracking that are relevant for almost any goal.
One of the basic metrics you should be looking at is the number of visitors your website has. After all, visitors will likely turn into leads and ultimately convert into customers.
Your marketing campaigns must effectively get people to visit your website. Why? Because your website is where you display all of the things needed to inform and convert your target audience.
Google Analytics is the easiest and most popular KPI tracking tool that measures website traffic. It also gives you an insight into the number of new visitors you get and where these visitors come from, among others.
Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs) Generated
Marketing Qualified Leads are leads that have shown an interest in your brand through an action such as viewing a service-related page on your website.
They differ from SQLs in such that MQLs need more exposure to your content to influence them to convert. SQLs are highly likely to convert into a customer.
You need to identify and differentiate your MQLs from your SQLs. Identifying MQLs will allow you to measure the cost per MQL for every campaign.
These metrics are also helpful to determine if your marketing efforts are producing valuable leads.
Cost per Acquisition
Also known as Customer Acquisition Cost (CAC), this B2B Marketing KPI shows how expensive it is to acquire a single customer.
Obviously, you can’t make a profit without your customers. That’s why it’s vital to keep track of this metric to know how to acquire them.
You can calculate the CAC by dividing your total marketing expenses by the number of new customers acquired from a specific campaign.
CAC = marketing expense / number of new customers
A lower CAC number is good, which means that your efforts are performing well.
This metric is useful, especially when prioritizing campaigns that have a low CAC. This gives you a chance to improve your strategies that are ineffective and make them more efficient.
To generate revenue in B2B Marketing, you need patience. It will take time, strategic planning, and proper execution.
Understanding what influenced your customer’s journey in every stage of the buying process will help you create effective strategies to increase your revenue.
Ultimately, you want your leads to end up buying what you offer, whether it be a product or a service.
Customer Lifetime Value (LTV)
This KPI shows how much revenue each customer generates for you during the duration of your business relationship.
It’s important because you will have an understanding of who among your customers brings a greater profit. You can then focus on the efforts to make them stay longer.
To calculate the LTV:
LTV = Annual Profit from the Customer x Number of Years – CAC
A higher number means a greater profit.
Lead-to-Close Conversion Ratio (CVR)
Lead-to-Close Conversion Ratio (CVR) gives insights into the percentage of leads that turn into your customers.
You can concentrate on the marketing campaigns that have effectively converted them, and replicate that in your future strategies. On the other hand, you will also know which initiatives did not work.
To calculate the CVR:
CVR = Number of Sales / Number of Leads
Oftentimes, reports for this KPI come from Google Analytics. This metric shows exactly where a visitor to your website came from.
For example, if a visitor found your site through a Google search, then the source report would be Google.
This KPI helps you keep track of the channels that are driving site conversions and bringing traffic to your website.
Click-Through Rates (CTR)
Click through rates are one of your most important B2B Marketing KPIs to track. Every part of your consumer journey is a step in the marketing funnel.
It’s important to track every step and figure out why consumers aren’t going to the next step in the funnel.
CTR = Clicks / Sessions
Identifying and keeping track of your key performance indicators in B2B Marketing is crucial to the success of your campaigns.
Undeniably, the right metrics will help guide your decisions so that you can budget more accurately, create and improve your marketing strategies, and calculate your ROI correctly.