Evaluating your marketing campaigns helps you understand how to deliver the best possible content and receive the best possible results. Evaluation and testing should be an ongoing process for as many campaigns and tactics as you have time to evaluate.
Here are some of the key metrics we recommend you track and analyze:
Conversion rate refers to the percentage of potential customers that move from one step of their buying journey to the next. The more you can track these “micro-conversions,” the more tightly you can dial in your analysis, even with small amounts of data.
A micro-conversion might be as simple as viewing a key page on your website (such as a product or service feature page) after arriving on a more general page of your site. It might be signing up for a newsletter, downloading a whitepaper, or engaging with an online chat representative.
Typically, the conversions that most B2B companies will be interested in are:
Impression to visitor conversion rate
What percentage of potential buyers who see your content on a third-party medium (like an ad or an organic Google search result) click on it and visit your target content. This conversion is also known as a Click-Through Rate, or CTR.
Visitor to lead conversion rate
What percentage of visitors to a particular piece of content actually submit a piece of contact information to you to deepen their interest level in your products or services?
Lead to prospect conversion rate
Not every lead will convert to a prospect — i.e. actually engage in a sales conversation with you, even if they’ve submitted their information. What percentage are you able to successfully engage with?
Prospect to customer conversion rate
Obviously this metric is where the rubber meets the road. What percentage of prospects who engage with you in a sales conversation convert to becoming a customer?
Unless you’re a truly exceptional business, your impression-to-customer conversion rate from the top of the marketing funnel all the way to a closed sale is likely to be a tiny fraction of a percent. But tracking your conversion rate at every stage of the marketing funnel helps you evaluate how well you’re doing at each stage, and which stages you most radically need to improve the content you’re delivering, or the buyer experience.
Cost Per Acquisition (CPA or CAC)
How much did it cost you to acquire a lead or customer via a particular marketing channel or campaign?
The calculation here is pretty simple but it’s one of the most important metrics to analyze.
CPA = total amount spent to acquire new customers through the channel or campaign ÷ the # of new customers acquired through that same channel or campaign
CPA can be used to measure the effectiveness for your campaign through various channels. It is commonly used to measure channels such as PPC, email, and social media.
Return on Investment (ROI)
Ideally your cost per acquisition is a fraction of the revenue you make from an average customer, which is where calculating ROI comes in. Return on Investment tracks how profitable your marketing campaign is. It is usually written as a percentage and is determined by dividing the net revenue generated by your campaign by the cost.
For example if your calculated ROI is 30% then for every dollar spent you are making $1.30, or a $0.30 profit on your marketing investment.
How is this calculated?
|ROI =||(# of leads||X||lead to customer conversion rate||X||average sales price)||—||cost of campaign|
|cost of campaign|
This formula is a little more complicated, and in order to use it correctly you must identify the value of each component, which isn’t always straightforward. But tracking ROI provides the core basis on which to base your future marketing decisions — are your marketing efforts “penciling out?”
It’s a best practice to measure how satisfied customers are with your product or service. Capturing negative feedback helps you improve your product or service offerings and potentially remedy a bad situation before a customer cancels; capturing positive feedback helps start the Advocacy part of the marketing funnel.
One of the most widely used mechanisms for measuring customer satisfaction is Net Promoter Score (NPS). NPS simply asks customers to rate “How likely is it that you would recommend our company to a friend or colleague?” on a scale of 1-10.
- Net Promoters are customers who rate your business 9 or above.
- Passive customers rate your business 7-8.
- Net Detractors rate your business 0-6.
To calculate your Net Promoter Score, simply subtract the percentage of Net Detractors from the percentage of Net Promoters.
Although academic efforts are typically graded on an A-90, B-80, C-70, D-60, F scale, NPS scores work very differently.
Our friends at NPS measurement company GatherUp place NPS scores in the following buckets:
- -100 to 0: Poor and needs improvement
- 1 to 30: Average
- 31 to 70: Good
- 71 to 100: Exceptional (nobody gets 100, so don’t chase that)
You can conduct either formal or informal email campaigns asking for Net Promoter Score feedback. Simply asking for feedback lets them know that you care about their business and that their feedback is valued, and helps build loyalty and advocacy, particularly among satisfied customers.
Take a look at more sales and marketing KPIs in our Guide to Metrics to Track.