There is no shortage of marketing metrics in the 21st century. With all the digital forms of communication, its become fairly easy to acquire data about how, where, why and when communication happens.
As a marketer or sales rep, you use that data to produce more targeted communication. But to move fast enough in developing marketing materials and then reviewing what works you'll need to know how to quickly gauge success.
What inbound marketing metrics are most important in providing you insight into what is working and what isn't.
Below I have included two SlideShare presentations that do a great job in explaining how to measure the right inbound metrics for you.
The first presentation is by RJMetrics, a philadelphia based data visualization company. And the second one is by Results.com. These presentations do a great job breaking down how to think about your metrics and how to prioritize your goals/targets.
Key take aways:
1. Start with most important indicators.
For most businesses that are for profit, your most important metrics will be financial based. You are always going to be trying to increase sales and revenue, increase average revenue per customer, decrease your customer acquisition cost, decrease your spending and so on...
Map the incoming and outgoing metrics. Work back until you get to a specific action that can be taken.
2. Determine what aspect of the business you are trying to focus most on.
Where are you putting most of your attention and how do you decide that? Using a balanced scorecard can help you to construct a strategy map. This will provide the framework for you to track inside of.
KEY TAKE AWAYS:
1. 92% of companies don't measure KPI's.
Kind of crazy don't you think? Well it actually makes sense and it isn't because the business doesn't look at their numbers. It's because that's all they look at.
Key perfromance indicators are much more then just your staightforward metrics. Because there are so many metrics you could be tracking you need to choose which metrics to choose, organize and combine.
This allows you to collect meaningful business information that you can use to answer specific questions about how you are performing. By collecting information about what is being done you can predict what the outcome will be.
In other words, KPIs indicate future success so that you can make changes before you run into problems.
2. Ask questions to nail down the right key performance indicators.
Ask questions around how you train, develop and empower people. Ask questions around your operations and processes. Ask questions around your customer experience and ask questions around your financials.
Think about what outcomes in each of the above perspectives (financial, customer, internal, learn/grow), what do you want to achieve? Then think about the actions and activiies that need to be carryed out to achieve that result.
This is where a balanced scorecard will prove useful. A balanced scorecard will provide you with a framework you can use to prioritize objectives and determine the weight each key performance indicator holds.
There are many ways that you can go about choosing the right inbound marketing metrics to pay attention to but you have to rememebr to stay focused. Both RJMetrics and Results.com are experts that talk about defining an overall objective and then working backwards to define actions.
If you want to learn how to calculate some of the most important inbound marketing metrics, such as marketing originated customer % and LTV:CAC, download our free cheat sheet today.
If you have any questions or comments either leave a note below or mention me on twitter @davidalberico