Cost per lead, conversions per month, leads per show, white paper downloads, time on Web site, Web site visits, webinar attendees, webinar registrants who did not attend, user conference attendees, click-through metrics, return Web site visitors… I can go on and on. These are all interesting metrics, but does Marketing really get credit for a positive increase when it’s budget time? In most cases, no.
I am continually amazed at the creativity of our customers in generating interest in their products through their marketing efforts, whether it is at a trade show or user’s conference, or in Web site content or webinars. Through these efforts new opportunities (leads) are identified and delivered to Sales for closure. Credit usually stops here, though with Marketing value implied and Sales value recognized. It’s not fair! It all comes down to revenue production, and today marketers are not getting the credit they deserve.
There are three metrics that should be readily available to Marketing and executive management on a campaign-by-campaign basis: projected revenue, pipeline revenue, and actual revenue. Also, the metric that all C level leaders are interested in seeing is Campaign Cost per Order Dollar (CPOD). By accurately capturing this metric, an organization will know whether the revenue generated from a particular campaign warrants the cost and effort or whether it is better off spending its marketing dollars elsewhere. How do you accurately capture this metric?
It requires a collaborative effort on Sales and Marketing’s behalf, a good closed-loop marketing solution, and CRM implementation. Also, there are many smart people available to help. Lead Management guru Brian Carroll comes to mind. Chris Koch does as well.
Please let us know if you are interested in learning more.
4 Comments
Chris Clegg
November 12, 2009
I almost agree with everything you’ve said. CPOD is a great metric to bring things down to earth (all other’s really just help us diagnose CPOD).
Where I go a different way is when you say that CPOD defines which marketing is most productive. I argue that in many cases, different types of marketing will reach different types of consumers. You’ll miss a segment of the market if you put all your money in just radio or PPC or in-store. Each has its own benchmark and the right overall mix will allow you to grow, dominate, or maintain your market. Put too many eggs in one basket and you’re putting the pipeline at risk.
My two bits. Great article. Thanks!
Brenda Gilsrud
November 13, 2009
I have been a cold caller/lead generation rep for over 5 years. My stats are pretty impressive, but I hate to say it…no sales ever came from me pushing a meeting. They come from those who are already interested in the company and the products. Also, I have found that the best leads have a convoluted marketing lead source — maybe somebody read a whitepaper, someone else from that same company attended a webinar, and yet another person was referred by a partner that I work with. Very hard to tell where exactly the sale came from — it’s from a multitude of efforts that aligned just right one day.
Victor
November 17, 2009
I agree Chris. From my perspective, each campaign should have unique landing page exit so you can determine opportunity volume from your campaign types. I am glad you saw value in the article.
Victor
November 17, 2009
Great point Brenda. In most B2B environments with large sales cycles, marketing can touch a record multiple times. Thes touches should be tracked. That first initial introduction though was due to Marketings efforts. I believe new opportunities and leads should be directly credited to that first introductory campaign. Thanks for commenting!