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Marketers continue to face numerous challenges each year – the biggest one this year is pandemic. The usual spending cycle is disrupted and has led to a drastic change in marketing approach and strategies. However, smart marketers have found their way around it through reliance on marketing analytics and are using it to their advantage.
Marketing Analytics has become the top priority for organizations in 2020, as they put their strategies in play. Marketers have adopted a changed mindset to drive long term success; they now think like a CFO and aim to use marketing as a driver of value and revenue-driving function.
It is not only the mindset but also the expectations that have increased since then. Marketing leaders who have adapted to this new marketing landscape have taken charge to bring about a transformation in their organizations.
SmartMetrics analytics experts combine their analytics experience and the revenue-generating mindset when making any decisions. It shows that marketing led by a philosophy focused on growth is accountable for driving maximum revenue.
To lead the charge for making a quantifiable impact that most marketing organizations are achieving, Data-driven CMOs are relying heavily on marketing analytics teams.
Marketing leaders these days are asked to demonstrate the scalable impact their organizations have made on the pipeline. While considering the stringent scrutiny around the marketing budget and the demand for accountability on marketing spends, marketing performance insights and marketing analytics enable the marketing leaders to have data-driven conversations with the C-suite.
The use of data-driven conversations is not just limited to having finance-related conversations but also enables marketing leaders to inspire/reward their teams based on the performance and also optimize the implementation of their strategy.
The increasing importance of marketing analytics has also led to a great impetus to the importance of the metrics used to track them at an exponential rate. A combination of metrics creates a system that enables the marketers to boost the performance and detect the errors in their strategy.
There are marketing analytics engagements that have marketing BI, data warehousing infrastructure, and self serve dashboards that use powerful tools like Amazon Redshift, Snowflake, Alteryx, MySQL, Periscope, Looker, Tableau, DOMO, PowerBI. These tools enable SmartMetrics to track the data on an on-going basis.
The definitions of such metrics may vary, but there are five broad categories of metrics that define Marketing Analytics and ROI.
1. New Engagements:
The best way to influence new deals is to engage the right customers and account, while actively qualifying and nurturing them before handing them over to the sales. Marketing Organisations use ‘Goals’ as a critical factor to implement aggressive plans to drive such engagements.
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Some frameworks are designed to enable marketers to keep track of performance against goals in real-time.
2. Cohort-based Demand Waterfall Conversions:
Since new engagements comprise the driving-top of the funnel volumes, the quality of such engagements is determined by the ‘cohort-based’ demand waterfall conversions. Generally, Demand Waterfall conversions track 4 KPIs with some variation.
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It usually follows the process of Leads to MQLs, MQLs to SALs, SALs to SQLs, and SQLs to Deals. As you can see, these 4KPIs provide information about the funnel and help with the deals.
3. Influenced and sourced pipeline:
For any marketing organization, driving a new pipeline has always been the most important KPI. In recent times, it has become significantly essential to demonstrate how marketing has impacted the pipeline.
Marketing Pipeline Acceleration/Influence and New Pipeline Sourcing are the two commonly used metrics that show the impact of marketing. Using these two metrics, organizations can increase marketing-driven engagements across the accounts and link them to impact on the pipeline.
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It becomes easy to gain valuable insights into marketing activities through pipeline correlations. Especially to understand ‘when’ the new opportunities were created in marketing for active accounts and the accounts with existing opportunities, and how their marketing strategy was able to influence deal expansion and accelerate closures.
Marketing leaders use these 2 KPIs to have impactful conversations with their prospective clients. Moreover, these KPIs play a crucial role when the market mix is evaluated in the marketing tactics and channels that are used for the different phases of the buying cycle.
4. Multi-Touch Attribution:
In today’s world, marketing organizations are equipped with a multitude of marketing tactics which they use to reach and communicate with the customers. There are innumerable marketing touches involved in every deal.
Organizations use marketing touches in the form of web engagement (visits, clicks) to email engagement, webinars, e-books, white papers, in-person events. These touchpoints have different levels of influence on the deals, and there is a cost that marketers have to shell out from their limited marketing budget.
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It is not only wrong but also dangerous for market leaders to set the budgets to different tactics without considering the insights around how they perform. These days, marketing leaders are expected to make smart decisions in terms of budget allocations, mostly by the Finance and sales organizations and their organization.
It is essential for marketing leaders to feel confident about these decisions as they will help them meet their pipeline goals. This is where the use of multi-touch campaigns comes into play.
A multi-touch marketing campaign is a valuable KPI, as it promotes decision making for marketing investments that can drive excellent results for the marketing organization.
The approach of multi-touch marketing can provide valuable insights that are valuable for the marketing organization, but they have to be implemented correctly and validated.
5. Customer Lifetime Value (LTV):
This metric is known for getting increased traction and is looked at more closely for long term Marketing ROI calculations and is commonly used by SaaS companies. The metric is used to determine the total amount of revenue expected from the new customers over a lifetime.
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Considering that the chances of getting an increased amount of revenue from an existing customer are 3x more in comparison to a new customer, the value of managing customer churn drives the LTV higher to get an increased ROI in time.
It has become relatively easy to keep track of marketing spends, engagement with the marketing programs, and the pipelines link to those engagements with the help of Modern marketing technology and analytics platforms.
Using the right analytics strategy and tools, SmartMetrics works with marketing leaders to furnish their teams with such critical data points. They enable each member to contribute actively towards creating a data-driven culture with the organization.
The marketing leaders and the CMOS are the primary gainers, as these KPIs offer strategic insights that enable them to show the growth their organizations have accomplished. It also helps them to build a strong working relationship for marketing in the C-suite, especially with the CFOs.