Wednesday, July 10, 2013

Tips for impactful Marketing Measurements Part II

I recently wrote a blog post titled “Tips for Impactful Marketing Measurements”.  However this is such a near and dear topic to me, that I don’t think 1 post can cover this topic.  I have recently read 2 articles touching on this, so I wanted to share and expand on them a bit.

The crux of the slideshare is this pyramid

This highlights to me many of the metrics that I see traditional media buyers focused on, yet metrics that should be downplayed compared to their “business changing metrics”.  What I see here as a critical element is proper measurement on forward looking metrics. One of the biggest reasons for the shift to digital from traditional media (besides audience) is the ability to measure.  However, if we are not measuring by the right metrics, we will not see success.

So how do we measure and focus on the right metrics?
As Hubspot has posted lead nurturing is a HUGE key to success. There are many great stats to back this up, from many different sources, but a sample of just two of these are:
  • Companies that excel at lead nurturing generate 50% more sales-ready leads at 33% lower cost.
  • Nurtured leads make 47% larger purchases than non-nurtured leads.
There are 28 other good poof points listed in the above Hubspot link, so if you haven’t yet read it, please do!

2: So now that we know that lead nurturing is a MUST.  Marketo has posted this article on “Your Company has Graduated to Marketing Automation– Now What?” 

So what does this all mean? Is a $50 CPL better than a $100 CPL? The truth is asking what the CPL is, is the wrong question to be asking. The right questions and metrics to view are the forward looking metrics like –Respondents to MQLs, MQL to SQL conversion rates, Customers Acquired (not leads), Lifetime value of customers.  Without a full marketing mix attribution model and a lead nurturing strategy the truth and full potential won’t be discovered.

So what metrics are you viewing? Have you established benchmarks on forward looking metrics, or are you still looking back at CPCs and CPLs? 

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