Measuring Marketing Effectiveness:

5 Metrics You Need to Track

Every decision your marketing team makes should be informed by data

but with access to more metrics than ever, which data points should you be making decisions off of?

What percentage of overall company revenue can be traced back to your marketing team’s efforts? The higher the number here, the more effective your initiatives.

1. Marketing contribution to revenue:

Keep in mind, some areas of effectiveness—like brand awareness and website visits—may take longer to translate into revenue or may benefit the company in non-monetary ways.

How do your marketing activities help grow and accelerate pipeline? How does this growth and acceleration change from one month or quarter to the next? Your team’s ability to regularly fill the pipeline with new leads and to keep those leads moving down the funnel is a critical component of overall effectiveness.

2. Pipeline growth and acceleration:

It’s important to pay attention to both growth and acceleration. Having one without the other can be a warning sign that something isn’t working as planned, or that you need to re-focus your efforts to keep the pipeline both full and flowing.

Conversion rate can tell a number of different stories depending on where you’re looking. For example, you might measure conversion rate on a landing page to see how many website visitors complete forms, or you may measure conversion rate to understand how many leads turn into sales opportunities.

3. Conversion rate:

In cases where the end goal is to spur further action (as should be the case for most marketing activities), both of these are critical in determining how well you’ve done.

Remember, some leads are more valuable and worth the higher cost, but you’ll want to be sure. You might find that investing more upfront yields higher quality leads and therefore, better ROI. Your goal should be to find  the sweet spot that  balances cost with  quality and results.

Understanding brand awareness is especially important in industries with longer sales cycles, as buyers today tend to do far more research on their own before reaching out to a company for information. Oftentimes the results of brand awareness are long term, so proving an ROI may be more complex.

5. Brand awareness:

Frame the effectiveness of your brand awareness by considering it in conjunction with your pipeline. For example, if you have strong brand awareness, you may see lower acquisition costs  or faster deal cycles.

Properly Understanding Metrics is All About Perspective

Your end goal should be to paint a comprehensive picture of how your marketing efforts contribute to your organization’s growth. This comprehensive picture not only includes your marketing team’s ability to bring in new leads and convert them, but also how those results compare to the effort put into those activities in terms of factors like cost and awareness.

Learn more about measuring your marketing efforts: