Think of inbound marketing as attracting customers with a magnet, as opposed to a loudspeaker. The great thing about inbound marketing is that not only does it generate more qualified leads, but every action that you take or strategy that is implemented is measurable.
There are numerous unnecessary digital marketing metrics to focus on, but which ones are the must haves? There are hundreds of software platforms out there that will pump more numbers at you than you can comprehend, but in reality, most of these numbers are useless and misleading. Data doesn’t mean anything unless you can directly relate it to increasing leads, revenue, and ROI.
The traditional Madmen view on marketing is outdated, and B2B marketing is shifting towards a more scientific approach to meeting budget and ROI expectations. Many companies are still not linking program spending to revenue results. In the end, you should focus your time on revenue generating activities and metrics that you can link directly to profit.
To solve this issue, Clymb Marketing uses the HubSpot Reporting Add-on, which consolidates multiple reports on one screen to make analyzing data easier. But before I jump into this marketing tool, let me discuss two things all successful marketing strategies have in common.
Sales and Marketing Alignment
It is necessary to bridge the gap between the sales and marketing teams, and make sure they are on the same page. Integration between your marketing platform and the CRM is a must.
Integration is possible by using a marketing funnel, where the middle is shared between the sales and marketing teams. It is important that both teams use the same language.
Implement a service level agreement (SAL). The goal of an SAL is to set expectations of one another and have a written understanding of what they agree to accomplish for each other to reach specific goals. In essence, marketing must generate leads, and sales must follow up and close.
Set up closed loop reporting by tightly integrating both the MP and CRM and ensuring both teams are utilizing the system. Use sales + marketing dashboards, have transparent updates, and track campaigns. Your marketing team needs to share lead intelligence with the sales team to empower closing strategies. Communication is key: Set up a way to notify the sales team of lead alerts, while sales provides information that can link marketing efforts to ROI.
Once you have the right system in place, it is challenging to make sense of all the data, and convert it into marketing action. Unfortunately there is no single KPI that quantifies effectiveness of a marketing campaign or strategy. Before diving into the data, you must have clearly defined goals.
Smarketing is the concept of combining the sales and marketing goals to improve revenue. Your goals should be SMART:
- Specific: definite, tangible, realistic numbers and deadlines, and avoid broad goals.
- Measurable: Goals should be trackable.
- Attainable: Set a goal that is realistic and meaningful. It should be challenging yet not impossible to accomplish.
- Realistic: Your goal should align with what your team is capable of achieving and attempting to accomplish on a greater scale.
- Time-bound: Set a deadline in the near future and work hard to meet it.
These guidelines allow the marketing and sales teams to hone in and get very specific on what they expect of one another. This will allow you to determine which reports are most important to measure your progress. Smarketing creates value behind the data by giving purpose to specific metrics.
3 Must Have Digital Marketing Metrics
Aligning your marketing and sales platforms is going to give you an arsenal of metrics and data that will help guide marketing action. It is hard to determine which metrics are relevant, and which reports provide the most value. Every marketer needs these 4 digital marketing metrics:
1. Lead Generation Metrics
Generate a Leads Report that determines the total leads your marketing efforts are bringing it. It should also dive deeper and give some insight on what is and isn’t working. Make sure you are capturing who the leads are, the demographic, age, etc.. the best you can in order to help the sales team and determine which buying persona they fall into. This is important to understand and is the base for how you should nurture each individual lead throughout the buyers journey.
This is an essential metric to track, but it should never be a goal to get a certain amount of leads. Read why lead goals are not the best goals, but why lead generation is still important.
2. Lifecycle Metrics
You should have a sales dashboard that generates a report pertaining to each stage in the lifecycle your leads are in. THis is the best way to organize and segment your leads and engage them effectively. Read here to learn how to effectively engage leads. Doing this will help you determine how to appropriately engage each lead and which steps are next, as well as analyzing which tactics are working the best. A sales dashboard should show the productivity of your sales team and the marketing funnel. If integrated properly, these reports can alert the sales team when and how leads should ready to be contacted.
3. Source of Leads Metrics
Process incoming analytics data. Use a report to illustrate where your leads are coming from, so you can implement the most effective strategy. This report should demonstrate how your each marketing channel is performing.
Analyze which source is generating the most traffic and focus your attention on building and scaling those marketing efforts. You will then have a better understanding of which sources deliver the best ROI and deserve the greatest budget and attention. Follow the leads through the pipeline and make sure to note which leads are converting to customers as well.
Lots of Data, Not Much Sense
Reviewing reports and metrics can be very time consuming. Inefficiencies lay in poor best practices, analyzing the wrong KPIs, and having a messy workflow. If the process you have in place is not seamless, then translating metrics into marketing action is going to be difficult. We recommend HubSpot’s Reporting Add-on.
The add-on utilizes a customizable dashboard that centralizes data and allows both marketing and sales to review the metrics most important to them. Users are able to create their own custom reports using properties they’ve already created with their own accounts. Because all the necessary data already exists, generating reports takes only a few clicks and a couple seconds.
According to Laura Moran, you are able to have multiple dashboards for executives, different teams, and across divisions. For instance, a company’s marketing team can have one dashboard focused on lead generation activities, while the sales team has one focused on deals and revenue growth. This allows users to personalize their experience and get exactly the information they need every time they log in. Because it reports for both sales and marketing, it helps businesses align those two organizations. It lets them be smart with how they approach customer acquisition.
To sum up:
- Align MP and CRM
- Your marketing goals should be SMART
- Focus on metrics that are linked to ROI
HubSpot’s reporting add-on helps make the science side of inbound marketing more simplistic. Contact us today for more information on digital marketing metrics, and how to start utilizing Hubspot to increase your marketing efficiency.