Measuring the effectiveness of marketing is a challenge for most marketers. The typical view is that marketing is a necessary evil to drive revenue. But according to Jill Snyder, of NineStar Connect, marketing should be driven by revenue. To her, it’s all about supporting key business targets such as revenue, leads, and number of customers or even number of sales calls.
Most businesses will track leads, at even a basic level. And they certainly track sales. But do you know how many leads it takes to make a sale? That is the core of Jill’s talk at the June 17th B2B Marketers lunch event at MillerBrooks. It all begins with leads. If you know how many leads you get (if by source, even better) and you know how many leads turn into prospects and how many of those receive proposals and how many proposals turn into sales, then it’s not too difficult to focus your marketing. How you ask? Well, once you know all this, you can fine-tune your marketing to dial up leads from individual tactics. For example, if you know that it takes 10 leads to yield 3 proposals, and 3 proposals to land 1 sale, then you can work backwards to the source of those leads to either ramp up tactics that generate leads or better yet, eliminate tactics that are too expensive or ineffective.
That’s how revenue enters the picture. Leads are revenue. If you’re revenue goal is X and you know how many leads it takes to get to X, then marketing becomes a measurable marketing source. But you have to track those leads.
For topics like this or others related to B2B marketing, make it a point to attend our monthly presentations.