“Do more with less”.
This is a directive CMOs have been hearing for decades and more frequently in the past two years. Doing more with less requires metrics. Metrics that enable CMOs to demonstrate their value to the organization, continuously improve campaign performance, and make smarter investment decisions.
While measurement is a top priority for leading CMOs, the majority of marketing organizations find it difficult to measure performance in key areas, such as content marketing.
With the amount of available data and measurement tools, why are marketers struggling to analyze and report on their performance? They’re measuring too much. Don’t measure everything, measure the right things.
If you’re using Pardot and Salesforce, track these five metrics to get a true picture of campaign performance, ROI, and revenue contribution.
1. Marketing Influenced Revenue & Pipeline
It’s only been in the last decade or two that marketing initiatives have been tied to revenue. Historically, the marketing department was viewed as a cost center. But now, 8 in 10 executives look at revenue and sales growth as a metric to measure marketing’s value.
Your Pardot and Salesforce systems make it easy to consistently demonstrate marketings’ value with the Marketing Influenced Revenue and Pipeline Report.
2. Influenced Revenue & Pipeline by Campaign Type
This is a completely different metric from the one above because you’re looking at marketing automation campaign performance in direct correlation to revenue.
This metric shows how each marketing automation campaign contributed to revenue growth. It enables you to continuously improve campaign performance and make smarter investment decisions.
3. Attribution Metrics
You know your marketing campaign worked, but you’re not sure what part of it was the biggest contributor.
If so, you need demand generation campaign attribution measurements in place.
Many marketers want to create a multi-touch attribution model right out of the gate, but for it to be useful, you need to understand the building blocks. Start with a first and last touch attribution measurement and build on it. Once you get to a multi-touch attribution model, you’ll be able to better use it and explain it to others.
4. Lead Funnel Conversion Rates
Most Pardot users have a defined funnel that they have built into the platform. However, the majority of those users do not routinely measure the conversion rates from one funnel stage to the next.
While having the stages defined is necessary, knowing the conversions at each stage enables you to optimize the funnel by adjusting your Pardot scoring. You also have the ability to benchmark your performance over periods of time to measure your marketing automation performance.
Lastly, measuring your conversion rates at each stage will uncover issues in a particular stage, the effectiveness of your sales lead nurture programs, and possible challenges with sales.
Having this insight is invaluable and can help you drive better marketing outcomes.
5. Customer Retention
Demand generation is most frequently associated with customer acquisition, but that’s not its only function. Demand generation also impacts customer retention and spending.
The only way to grow market share is to keep the customers you have while adding new ones. Marketing plays a role in customer retention and should, therefore, measure and report on it.
Pardot and Salesforce will give you all the metrics you need to measure marketing automation performance, and there are numerous reports and measurement dashboards you can build. Remember, you don’t need all the metrics, you just need the right ones. Start with the five above to prove your value, improve campaign performance, and do more with less.