All metrics are not created equal

Implementing a marketing automation system is great, but showing ROI is the goal. Depending on the technology available to you and the processes you have in place, this may be a challenge. One of the things I see my clients struggle with is the ability to produce reports that definitively show marketing’s impact on revenue. If you are just starting your journey to Revenue Marketing™, keep in mind that all metrics are not created equal. In fact, there are layers of reporting that need to be created and utilized in order for you to show marketing’s contribution to revenue for your organization.

While the number of KPIs and metrics can be overwhelming depending on the industry resources you’ve reviewed, we at The Pedowitz Group have identified three levels of metrics every marketer should utilize:

  1. Activity metrics – these metrics encompass your campaign performance reports, email performance reports, and web analytics reports. These reports are for your campaign and product managers to view on a daily basis and are NOT for the VP of Marketing or your executive team. Here are some examples of activity metrics:
    1. Email opens
    2. Email clicks
    3. Email delivery rates
    4. Web visits (anonymous and known visitors)
  1. Funnel metrics – these metrics look at how marketing is supplying leads for the revenue funnel and the velocity at which leads are progressing. The head of the marketing department will be interested in these. Examples of funnel metrics are:
    1. Leads per funnel stage (inflow to each stage)
    2. Funnel conversion rates by month
    3. Funnel conversion by lead source by month
    4. Funnel conversion by most recent lead source by month
    5. # Of Marketing Qualified Leads sent to Sales
    6. # Of Sales Accepted Leads
  1. Revenue Metrics – these metrics encompass marketing contribution to revenue, total revenue, and return on marketing investment. These reports should align to marketing’s key performance indicators. This is what your CMO and C-level executives want to see, in an easy-to-read format. Examples of revenue metrics are:
    1. # of marketing influenced opportunities, by month or quarter
    2. # of marketing created opportunities, by month or quarter
    3. Total value of marketing influenced opportunities, by month or quarter
    4. Total value of marketing created opportunities, by month or quarter
    5. Total value of marketing influenced or created opportunities, as compared to sales opportunities, by month or quarter
    6. Return on marketing investment (ROMI) by channel, by month or quarter

To prove marketing’s contribution and ROMI, marketers should strive to give funnel and revenue metrics that show ACTIONABLE insights to the leadership team. Sometimes, this does require education at the executive level. Your CMO shouldn’t want to review email statistics. Give them the reports that show marketing’s contribution to revenue.

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About Majda Anwar
Majda Anwar is a Revenue Marketing Coach and the manager for Campaign Strategy at The Pedowitz Group. She has been with TPG for 8 years working with clients to connect business objectives to results through campaign strategy and design. Majda brings both strategic and technical value to client as she is a Marketo Certified Consultant. Majda holds a BS in Business from Georgia Tech.

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  • Posted by Majda Anwar
  • On 06/23/2015
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Tags: marketing automation, activity metrics, funnel metrics, revenue metrics

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