CMOs remain under pressure to demonstrate ROI from their marketing efforts. Beyond understanding program elements that are effective and where leads are coming from, marketers have to protect their budgets and make sure their spend aligns with business goals. In recently released survey data, marketing budgets are projected to rise again in 2016, with 56% of companies increasing their spending.
Unfortunately, many marketers focus on measuring visits, likes, followers, shares and tweets, which don’t always convert customers or translate into tangible business benefits.
This week I’ve been reading helpful advice about the metrics that matter – for both CMOs and CEOs.
“Whether you think you can measure them or not, start by laying out the KPIs that matter to you and to the business. Stop measuring and reporting metrics like clicks, opens, and impressions at senior levels. Don’t get me wrong, they are important to running the engine, but they are merely intermediate steps to an ultimate outcome. It’s perhaps more valuable and effective to discover outcomes with inquiries about:
- The pipeline created
- Customer retention rates
- Repeat purchase rates
- Competitive share of voice
- Analyst ratings
- Gross margin contribution
- Growth in customer lifetime value.”
“According to Q4 2015 research, many executives are using revenue metrics to quantify the success of customer efforts. CMO Council looked at how marketing executives in North America quantify customer engagement success. More than a third of respondents said that revenue metrics, like customer lifetime value, revenues per customer and overall revenue increases, were the primary type of metric they used to measure consumer engagement.” – Read more at eMarketer.
Influencer Marketing Metrics
“Companies will measure not only the reach of an influencer, but also the reach of their followers– the ripple effect of great content. Expect to see social theme tracking, as well, which shows consumers’ purchase intent and how they engage with products, promotions, prices and availability. By tracking this data in real time, marketers can identify pieces of content that have the potential to go viral and the impact of sentiment over time. An increased focus on algorithms and historical data in 2016 will enable marketers to better predict what kind of and how many interactions followers will have with an individual influencer, allowing for marketers to offer guaranteed audience engagement before a campaign even begins. The deeper the data analysis, the more marketers can fine-tune influencer campaigns.” – Read more at Business 2 Community.
“Too often we report on campaign metrics, which are helpful at diagnosing program performance but too far removed from revenue to reflect business impact. B2B marketers should move beyond campaign performance to revenue performance metrics such as pipeline contribution, funnel velocity and lift. More and more companies are beginning to measure the impact of their ABM programs by close rates, retention and/or upsell and annual contract value.”– Read more at Marketing Land.
Net Promoter Score
“The CEO cares about the Net Promoter Score because he wants to see happy customers. What’s more, there’s a strong correlation between a high Net Promoter Score and company growth…Surveys are great tools for tracking the Net Promoter Score: You can ask respondents how likely they are to recommend a company to a friend or colleague, then ask them to score their satisfaction with your company between zero and 10. Calculate the percentage of responses that scored your company between seven and 10, then zero and six. Subtract the zero-to-six percentage from the seven-to-10 percentage, and you have your Net Promoter Score.” – Read more at PerformanceIN.