The Most Important B2B Marketing Metrics for CEOs

Do you know what CEOs want most from B2B marketers? They want clarity about marketing results.

CEOs often complain, “Why can’t I see clear measures and ROI from our marketing?” They expect their marketing leaders to provide clear metrics and be accountable for meeting their numbers just like their sales leaders.

In sum, CEOs get frustrated because their marketing leaders share metrics like sales lead activity KPIs, engagement reports, and some squishy metrics around a brand that aren’t tied directly to revenue.

Metrics on the State of B2B Marketing

I came across this chart on some B2B marketing metrics:

They report, “The majority of senior B2B marketers are using basic marketing analytics tools such as web analysis (91%) and spreadsheets (80%)…” citing a report [download page] from Regalix.

Additionally, I found this great comment from Ardath Albee, CEO of Marketing Interactions in TrustRadius’s new 2016 Buyer’s Guide to Marketing Automation. She sheds light on why this is such an issue. Ardath said:

They [marketers] have a hard time proving value, as they cannot tie to revenue. Many only can do last-touch attribution. They lose visibility once a lead moves into the sales realm. Marketing is often removed once it goes into sales, which is a mistake. There’s no continuous thread.

Read on to learn what you should measure.

You can start working on these six key marketing measures now. I’ve seen marketers who really dig in and answer these big-picture questions get an edge. Also, they ultimately get bigger budgets and have more influence inside and outside their companies.

Every CEO cares about Lifetime Value of Customer (LTV) and Customer Acquisition Cost (CAC) but what other marketing metrics do they actually care about?

6 Marketing Measures that Give Your CEO More Clarity

Here are six big-picture KPIs to give you a competitive edge and lend your CEO clarity on the effectiveness of marketing campaigns.

1. Marketing Influenced Customer Percentage 

What’s the impact are your marketing investments making on sales productivity? On the sales pipeline? On revenue velocity?

2. Return on Marketing Investment (ROMI) 

  • What’s your return on your marketing investment (ROMI)?
  • How much are you putting in marketing and what are you getting out in revenue? The difference between these two numbers gets expressed as a percentage.

3. Marketing Originated Customer

  • How many and what percentage of your new customers are marketing generated?
  • How much revenue can you attribute to sales leads coming from your account based marketing or demand generation efforts over a given period?
  • How many customers started via marketing qualified leads?

Also, this measurement is easier to track if you have a closed loop system.

4. Time to Revenue

  • What has your marketing done to help shorten your time-to-revenue?
  • What has your marketing done to lower the combined expense-to-revenue ratio of sales and marketing activities?

5. Customer Acquisition Cost (CAC)

  • What is your average expense of gaining a single customer?
  • What does your combined marketing and sales cost/divided by the number of new customers?
  • What is your marketing a percentage of the total customer acquisition cost?
  • What’s the total cost of your lead account-based marketing or demand generation efforts during a particular time period? This number includes Marketing team total compensation, Vendors, marketing technology, costs, and materials)

6. Ratio of Lifetime Value to Customer Acquisition Cost (LTV:CAC)

  • Calculating this ratio will show if you’re spending too much to acquire each customer or if you’re missing opportunities from not spending enough.
  • The higher the ratio the better. 3:1 or 4:1 is good.

If you want help calculating LTV:CAC, check out this post.

Cheatsheet for CEO-level calculating marketing measurements via HubSpot

In Conclusion

These are high-level measures will are supported by more detailed metrics you need to dig in to gather and use with your team and share with other departments. Please comment and share your insights with fellow readers. What B2B marketing metrics are most important for CEOs?

Brian Carroll knows what drives B2B buyers. As the founder of the B2B Lead Blog, a researcher and lecturer on marketing best practices, and leader in empathy marketing, he’s at the epicenter of the shifting B2B marketing landscape. Brian is the author of the bestseller, Lead Generation for the Complex Sale (McGraw-Hill). He is also the founder of the B2B Lead Roundtable LinkedIn Group with 19,533+ members. Brian recently finished a stint as Chief Evangelist at MECLABS (parent company of MarketingSherpa) and is now back to helping B2B understand and execute modern lead generation and empathetic marketing with his speakingconsulting, and training workshops. @brianjcarroll

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