What’s not to like, about a “Like”? As marketing strategies shift our measurements need to realign.
As the dynamics of marketing have shifted, and we (marketers) are more responsible for capturing longer engagement during the sales funnel, we need to adjust our marketing metrics to match. While it can be easy to focus on what some call vanity metrics (Likes, CPLs, Lead Goals, and even dare I say BANT - more on that coming soon) this isn't going to give actionable data to optimize and grow with.
Marketers have some of the toughest jobs out there as we are often viewed by our organizations as cost centers. By adjusting the measurement metrics we use, we can change perception to be revenue drivers and become more dynamic within our organizations. As eloquently put in this Marketo eBook “Focus on learning how to increase the payback, not how to spend less to get the same results”
What comes easy won’t last, what lasts won’t come easy:
It’s been my experience that many marketers measure effectiveness based on a single attribution (up to 45% as demonstrated in this Marketo infographic). While it’s great that more of us are focusing on measurements, is it the right measurement? It may be the easiest one, but is it the most accurate and best to base optimization off of?
Here are a couple of marketing metrics to focus on that can provide better direction for optimizations:
Attribution Modeling – There are many levels of attribution modeling Google has some definitions here. First and last touches are good metrics in a purchase process that doesn’t involve much research. However in B2B Tech buying our average buyer is viewing 6-10+ content pieces during their research process. ALL of these asset views have an impact on their decision. This should be considered and measured in a Full Marketing Mix Model. Marketo gives some great Pros/Cons and examples of these different models here
Additionally for more on attribution models check out this post from Marketing Sherpa, it has a great analogy.
Lifetime values – Lifetime value is another important metric to consider. Many new sales funnel models are now showing that post purchase experience can have just as heavy an impact on future sales. After all, keeping your current customers is equally important. This model from McKinsey & Company shows how the sale funnel isn’t linear anymore but now a circular process:
Understanding where customers with the most lifetime value are is a power metric to watch and optimize based on. Here is an excellent infographic from Kissmetrics showing how to calculate Lifetime Value of Customers.
Customer Acquisition Cost (CAC) – Many people get hung up on the Cost Per Lead they have to pay in their marketing efforts. This is a mindset that is out of date, as viewing this puts the emphasis on quantity not quality. CAC is a fundamental and baseline metric for any marketing efforts we should all be tracking. Tracking this at a marketing program level will get even deeper insights into what’s performing and what isn’t. HubSpot Defines this deeper and gives many other great metrics here.
As proven in this case study – using the right measurements and a proper nurturing funnel can have a profound impact. Our client here uses nurturing and was able to track revenue dollars all the way through the cycle to understand that her efforts in a particular program lead to a 16% increase in sales! Now that is how you shift perception from being a cost center to a revenue generator!
So – while a “Like” might make us feel good, does it give us actionable data to optimize with, does it turn marketing from a cost center to a revenue generator? Not likely. Consider deploying deeper levels of attribution modeling, tracking CAC and Lifetime Values to get a better sense of where marketing dollars are making the biggest impacts.