As you may already know, smarketing is the alignment between your sales and marketing teams. Measuring certain relevant metrics can enable you to see which marketing programs are working and which are not.
That’s why it’s important to gather the right data and organise it in an easy-to-understand presentation. This will make it easier for C-level executives to see the appropriate sales and marketing connections and make the right decisions to drive company revenue. Here are three key metrics your organisation should be focusing on:
Lead volume
You can’t really generate revenue without having customers to sell to – that’s why tracking your lead generation is so important. You need to be able to track the different types of leads, including marketing-qualified leads and sales-qualified leads. Marketers usually use methods like inbound marketing to generate leads, and it’s important to understand which content influences buyer decisions as they move along the funnel. When your lead volume is connected to your close rate, it shows how effective your acquisition and lead nurturing programs are.
Revenue
Since marketing is focused on bottom-line results, investing in a marketing strategy that generates ROI is important. However, not all marketing departments are focusing on these results, and it’s perhaps because they’re not sure how to. A simple way to do this is to set your revenue goals by month, quarter and year, and then define a budget. Try to determine the optimal amount of leads needed, by calculating how much effort goes into producing revenue. Setting specific, easy to track goals will help you determine if you are on track.
Customer Acquisition Cost
Customer Acquisition Cost (CAC) is a very important metric to track. CAC is the sales and marketing cost of convincing a potential customer to buy your product or service. It can be calculated by dividing all the marketing costs spent on acquiring more customers by the number of customers acquired in the time the money was spent. The lower the CAC the better. If this amount goes higher, it means you’re spending too much and your marketing isn’t very efficient. If your marketing expenses are too high, do some investigation into the sales team’s performance. To improve your CAC, you should try to improve on-site conversion metrics and enhance user value.
Some metrics matter and some metrics don’t. And it’s important to figure this out if you want effective marketing strategies. If you want to know more about sales and marketing alignment (smarketing) and integrated lead generation, download our guide.
