Measuring the return on investment (ROI) of marketing activities is crucial for any B2B company. However, determining the right metrics and key performance indicators (KPIs) to track can be challenging. This article outlines the key metrics and KPIs UK B2B marketers should focus on to accurately measure marketing ROI.
Revenue Metrics
Revenue-driven metrics are essential for determining the monetary return generated from marketing efforts. Key metrics to track include:
- Revenue Growth – Compare current revenue figures to the previous period to calculate percentage growth. Aim for revenue growth to exceed marketing spend.
- Cost Per Lead/Acquisition – Divide total marketing costs by the number of new leads/customers acquired. Lower is better.
- Sales Pipeline Revenue – Track the cumulative revenue value of prospects moving through the sales funnel over time. Increased pipeline revenue indicates marketing effectiveness.
- Sales Cycle Length – Measure the average time it takes for a prospect to move through the sales cycle. Shorter sales cycles indicate higher quality leads from marketing.
Customer Metrics
Metrics focused on customer acquisition, retention and lifetime value also provide important ROI insights:
- Customer Acquisition Cost – Divide total acquisition marketing spend by the number of new customers won. Monitor this cost over time.
- Customer Retention/Churn Rate – Calculate the percentage of customers lost over a period. Aim to decrease churn.
- Customer Lifetime Value (CLV) – Estimate per-customer value based on average order value and purchase frequency over their lifetime. Higher CLV justifies higher acquisition costs.
- Share of Wallet – Calculate percentage of customer spend controlled. Increased share of wallet implies greater customer loyalty.
Brand Awareness & Engagement Metrics
While harder to quantify, brand and engagement metrics indicate marketing’s impact on brand perception and customer relationships:
- Brand Sentiment – Social media monitoring and surveys to track brand opinion and emotional response. Positive sentiment denotes brand affinity.
- Website Traffic – Volume of visits to the company website. Traffic should increase over time as brand awareness grows.
- Sales Activity From Existing Contacts – Measure percentage of sales from current customers vs new prospects. More repeat business shows stronger customer engagement.
- Social Media Followers/Engagement – Follower growth and interaction metrics show brand relevance and connection.
Optimising Your Metrics Framework
To optimise ROI measurement, marketers should regularly review their metrics framework. Assess which metrics provide actionable insights into marketing effectiveness and tie most directly to business goals. Eliminate vanity metrics that lack strategic value. Aim for a focused set of 12-15 key metrics tailored to your marketing objectives.
Work with a B2B Marketing Agency
For many B2B companies, partnering with a specialised B2B marketing agency like Revegro can enhance their in-house capabilities and provide expertise needed to drive growth. The right agency relationship can optimise strategy, increase brand awareness, and improve lead generation.
Look for an agency with proven B2B expertise, analytical strengths to track ROI, and a collaborative approach. Clearly define goals, metrics, responsibilities and processes upfront. Maintain open communication for feedback and optimisation. Though agencies have a cost, their support can amplify internal marketing efforts and deliver significant return if the partnership is set up strategically.
Tracking a targeted range of financial, customer and brand metrics is key to fully demonstrating B2B marketing ROI. Marketers should identify the KPIs most aligned to strategic goals and consistently measure performance over time. With the right metrics framework, marketers can accurately quantify marketing’s monetary and non-monetary contribution to business growth.
