There’s a big shift in the way that marketing results are currently being measured. Vanity metrics simply no longer cut it, writes Richard Lane, co-founder and COO of strategic B2B sales and marketing consultancy durhamlane.
Tangible measurement of pipeline and revenue generation is needed. At the same time, brand and ethos is more important than ever too. But linking brand building to revenue attribution is a challenge. Here, Lane explores how brands can demonstrate the value of marketing during this shift in the landscape.
The sales funnel is becoming increasingly non-linear, so it’s important that marketing and sales teams work collaboratively, instead of side by side. There are a lot more entry points and different channels through which prospects can reach a brand, and it’s crucial to nurture that journey and think about how you can grow that customer and provide a holistic approach to the customer lifecycle.
Here are some ways you can demonstrate tangible value to your sales and marketing efforts:
Set goals and KPIs linked to revenue generation
To demonstrate the value of marketing, brands need to set tangible goals and KPIs that are explicitly tied to revenue generation. For example, a goal might be to increase sales by 20% over the next quarter.
KPIs might include metrics such as, the number of leads generated, the conversion rate, and the average deal size. By setting clear goals and KPIs, you can focus your efforts on activities that are most likely to drive revenue.
Marketing and sales must work closely together
Historically, sales and marketing teams have worked side by side but often not collaboratively. To generate revenue, they must work closely together and be interconnected. This not only enables resource-sharing, lowering the cost of promotion, but creates a more cohesive customer experience and lifecycle.
Marketing teams can support sales teams by providing them with high-quality leads, relevant content, and customer offers. By collaborating, both teams can ensure that efforts are aligned with the overall revenue goals of the business.
Use data and analytics
It goes without saying that data and analytics are essential for measuring marketing effectiveness, so tools such as Google Analytics to track website traffic, conversion rates, and other metrics need to be used and understood by both sales and marketing teams.
This information can be used to understand the connection between building brand awareness, generating warm leads, and closing business opportunities. Tracking the same key performance metrics such as conversion rate and lead value can help both teams identify which marketing campaigns are driving the most sales revenue and adjust strategies accordingly.
Regularly analyse leads and cost per lead
It’s important to keep track of how many leads the marketing team generates and the cost per lead. The key to a successful sales funnel is keeping a steady flow of leads that doesn’t cost the business too much in time or money.
Businesses must be clear on budgets or propensity to spend, otherwise you could spend a lot of time chasing leads that will never convert. For prospects that are interested, you really must nail it quickly before they lose interest.
Customer retention
It’s important to regularly evaluate how many customers have been successfully onboarded and nurture those relationships to get repeat business. The real prize will come when you work with the marketing team to peak attention of the right people, at the right time. Once you have their attention, get them engaged into a conversation where you then qualify them effectively and convert them into revenue.
Engage
Engaging with more people is more important than ever before. You need to build a plan that ensures that people from all different parts of that organisation are involved and engaged in. This is where marketing and sales can work collaboratively. Be the person that organises and manoeuvres and ensures that everyone is playing the right role on both sides.
Leverage social media
Both marketing and sales teams can leverage social media in both prospecting and evaluation by looking at how many leads it has generated and by seeking new business. Social media can also be used as social proof, such as customer reviews and testimonials, to demonstrate the effectiveness of your products or services and build trust with potential customers.
At durhamlane, we often use LinkedIn sales to find the right people by harnessing LinkedIn’s 800m+ member base. Virtually connecting with these target people enables you to start meaningful, engaging conversations with those potentially interested in your service that could lead to a conversion.
Listen to what your customers say
It’s important to always think of the ‘business fit’ and listen to customers’ questions and feedback to ensure you are the best for the business and they are getting the most out of your service. A lot of thoughtfulness went out of the window with COVID-19 as the sales process became very automated.
As a result, people started regarding this as spam. Top sellers and marketers must always have a customer-centricity focus and regularly ask themselves ‘how will what I’m selling benefit the customer?’
Move away from a sales-driven mentality, to a brand-driven one
This last point is perhaps the most crucial of all for long term success. It’s easy to focus purely on measuring the number of leads and how quickly leads are delivered, but this kind of attitude means that all marketing activity becomes short-term and transactional. Results aren’t always instant and it’s important to measure different channels in different ways. A PR campaign for example, will be less likely to deliver leads in 30 days, but does that mean it has less value?
No. In the long term, it can fundamentally help strengthen your brand. Instead of obsessing over attribution, obsess over customer experience and the value you can provide. Ensure that investment into sales and marketing is equal. Invest in your brand, because brand is everything and playing the long game, will deliver more success ultimately.
In summary, the key for both marketers and sales professionals to deliver a combined value is by working together – collaboratively and not competitively, being analytical, and above all, knowing the audience.
