Tuesday, October 30, 2007
5 Questions To Consider Before Trying to Measure Marketing Performance
A recent survey revealed that only 40% of B2B technology marketers have a closed-loop process for tracking leads from inquiry to close. With all of the tools available, one would think that this would be a completely buttoned-up process for most technology marketers. Closing the loop is critical to ensuring that not only your company is following up with inquiries, but also helps you allocate your hard earned marketing budget on the best performing programs.
How do you get there? Here are 5 questions you must be able to answer before you start your quest to close the loop:
1. What are the sources for all of your inquiries? Sit down and think of all the possible sources for an inquiry. Make sure to consider all online and offline points of entry.
2. What happens to these inquires? How are they distributed? Added to an Excel file? Sent to a salesperson via an email? If you find yourself stuck here, you are not alone. This may be early in the process, but this is where I see most closed loop processes break down. There is an inconsistent flow of data, through various channels, without a central point of record.
3. What do you want to track/measure? You should consider defining some basic metrics for success, and using those as a standard measure across the enterprise. Here are a few examples for measuring ROI:
a. Cost per inquiry – What is the cost per raw inquiry?
b. Cost per lead – What is the cost per qualified lead?
c. Cost of marketing – What is the cost per opportunity created?
d. Acquisition cost – What is the cost per deal closed?
4. Based on what you want to track, are you capturing the right data? Furthermore, is that data standardized to make reporting easier? Standardize every point of data input. From web forms to manual data entry, make sure the data is input consistently and as completely as possible.
5. Do you have an in-house tool that can help you centralize and manage this process? Can you easily track lead flow from inception, to pipeline, to close? I’m not talking about Excel spreadsheets – you need something much more robust. Seriously consider implementing a CRM system that can help you manage the process.
About the Author:
Kirk Crenshaw is CEO of RevCatalyst, a marketing services company focused on helping growing B2B companies develop, plan, and implement a high quality lead generation operation that sets your sales organization up for success. For more information, visit www.revcatalyst.com or contact Kirk at email@example.com or via phone at 415.887.7649.