Every company needs to measure performance. You can’t measure every team in the same way, but without goals to shoot for and mountains to climb- how will you know when your team is succeeding? That’s where Key Performance Indicators (KPIs) come in!
In their simplest form, KPIs are measurements of performance based on what’s needed in order to succeed. Without KPIs, you have little understanding of your success rate, so improvements simply can’t be made effectively. As you can imagine, there are literally hundreds, even thousands of KPIs you could use to measure all areas of your teams performances for both sales and marketing- so how do you choose the right ones?
Here are some KPIs that B2B sales and marketing teams have found beneficial to their processes and goals- take a look and see if they could work for you too!
KPIs for B2B marketing
It’s simple for marketing minds, the more leads, the better. Leads are sales opportunities, and they point to sales growth and revenue. It all starts with a lead, and B2B marketing departments of all shapes and sizes need to be focused on lead generation. Using leads as a KPI for marketing channels gives every team member a goal that’s simple to follow and easy to aim for. It also allows you to see how every channels feeds into an overall lead generation target. However, it is crucial to ensure you have a system in place for classifying a lead, especially when using broad reaching channels like social media- does liking a photo on Facebook count as genuine product interest? Make sure you avoid confusion by having it down in writing.
50% of B2B companies see the generation of leads as a challenge for 2018, so Lead Forensics is there to make it easier. By telling you what businesses are visiting your website and providing you with details about their visit (how they found you and what they looked at) alongside contact information (business name and phone number, location and email addresses for key decision makers), you’ll generate more leads than ever before! Why not sign up to a free demo and trial today?
2) Website traffic to website leads
Ask yourself “of all the website visits we get, how many turn into leads?” This KPI allows you to know two important factors- the quality of your website traffic, and what your website’s conversion rate is.
This is key to the success of digital campaigns like PPC and SEO, and as all marketing ventures drive traffic onto your website in one way or another, you’ll want to ensure it’s the best it can be. 94% B2B buyer searches start online, so website analytics must be a key part of your success measurement if you want a marketing strategy that yields results. (Lead Forensics can help with web analytics as well as lead generation…find out more here.)
3) Social media reach and engagement
Social media is constantly on the up. 55% of B2B buyers say they use social media to research business solutions and their providers, so if it’s not already part of your strategy- get it in there! Refine social media KPIs to include small details as well as the overall figures. Apply KPIs to Twitter followers and Facebook likes- this may seem insignificant, but if you want more leads from social media, you’ll need more likes/retweets/connections! Social media is known to have intense power and influence, so as it progresses, use these KPIs to grow your social network and strategy too.
4) Email marketing performance
Email is a widely used channel for B2B marketing, with buyers seeing emails as the third most influential source of information. However running a successful email marketing channel requires vast amounts of time and rigorous testing to find the perfect variants (like subject line and copy) that work together to bring in those all-important leads.
KPIs within email marketing are many, but you need to keep constant record of them all, so you improve with every campaign. Here are some of the crucial ones-
- Delivery rate
- Open rate
- Click-through rate
- Unsubscribe rate
- Response rate
- Conversion rate
Measure each of these as a KPI in its own right, then use them to enhance your email marketing strategy. Now you can look to the bigger picture KPIs- leads generated, leads converted, revenue made etc.
5) Landing page conversion rates
Every online campaign you run will likely have a landing page, from PPC and email to LinkedIn messages and content share. If these landing pages are not up to scratch, then all the effort you’re pumping into your marketing channels is wasted.
This KPI is vital- know how many people are hitting those landing pages, and how many respond to your call to action. If you don’t know these figures, then you’ll never know what your landing pages need to be successful, or how many leads you could be missing out on. Use this KPI to get a grip on your landing pages, so every channel can perform to its maximum potential.
So now you have a place to start with your B2B marketing KPI reporting, you’ll see your department reach success in no time! Don’t worry sales- we’ve got some for you too!
KPIs for B2B sales
1) Response times
When marketing hands a lead over to sales for them to call, you need to be snappy with response time! Leads called in the first 5 minutes after their inquiry are 4000% more likely to be qualified, so you have literally no excuse not to measure this KPI. A recent study showed B2B companies have an average response time of 42 hours- this isn’t good enough if you want to make sales!
Response time can kill the interest in your lead, which means you miss out on a sales opportunity and marketing have worked hard for nothing! Measure this KPI constantly and stress the importance of it to your team- its effect can make or break a sale.
2) Sales team communication rates
To get the most out of your sales team, you want to know where their time is best invested. Set up KPIs to measure the time spent on the phone, the amount of follow up emails sent, and all other areas of contact your sales team undergo. This will enable you to see the efficiency of your team, and how they use an average day. You’ll also be able to draw helpful anomalies- if a member of your team has considerably less phone time recorded, but makes a high amount of sales- they’ll have some great tactics to share!
3) Lead qualifying time rates
Once a lead is generated, it needs to be qualified by marketing to ensure they have a genuine interest or need for the solution you’re offering making them a MQL (marketing qualified lead). Once passed to sales, they need to turn it into a sales qualified lead (SQL); this means the company has sufficient budget and capacity for your product – there is essentially no reason they can’t purchase your solution. A lot of sales departments don’t properly qualify their leads; this causes a myriad of problems and you’ll just lose out later when the sale can’t close.
Set up a qualifying process for your sales team to follow with every lead, then track the amount of time taken to qualify the leads. Use this KPI to refine the qualifying process, until you have it down to an art.
4) Quote to close rate
Once qualified, a lead can be worked by the salesperson. Then a quote is extended, and negotiation begins. Ideally this process is as short as possible, the salesperson should have done sufficient work to know exactly what solution the prospect wants and how much they have to spend; negotiation should be a friendly chat and a quick close. Time matters, and the longer it drags, the further away the lead pulls until they eventually break away, and all the work has been for nothing.
This KPI is so important, as it measures the ultimate sales factor- will it be a sale (and if so- how much for!). This process should be made as strong and slick as possible. Use this KPI to assess how your sales team are currently closing sales, and where they can improve the process.
5) Cost of customer acquisition (COCA)
Though many see this as a marketing-centric figure, it’s just as important to sales. This figure accounts for the total amount spent in convincing someone to become a client. Take the total cost for lead generation and divide it by the amount of customers you acquired- there’s your COCA.
This figure is intensely useful for marketing to work out their ROI for the campaign used, but also proves to the sales team why every lead counts. This KPI can show salespeople how much money they cost the company by not following up a lead, or letting one slip through the gaps. It also proves the hard work marketing do for their sales team- teaming these departments up can see 67% more deals closed- this KPI helps strengthen that relationship as it factors in the spend from marketing, and the customers won by sales.
KPIs are so important to running a successful business, and the best thing about them is the freedom they offer. You can design KPIs to fit to the exact needs of your company and its systems. As long as they produce a quantifiable number, and measure an element that’s essential to your overall goal, you’re doing it right!
Take time to choose the right KPIs for your needs, and then ensure you’ve got everything set up to measure them properly. Lead Forensics can do wonders in helping you measure KPIs, from those pertaining to online marketing campaigns right through to those measuring the performance of your sales pipeline. Our software provides invaluable detail about the businesses visiting your website; by telling you how they found you and what they looked at, we can provide insights for your KPIs based in marketing, and with our Lead Manager feature you can gather that crucial data for your sales KPIs too! Find out how we can help you do this and more by looking into our free demo.
Free guide – Effective multi-channel models for marketing and sales has plenty more information in about KPIs. If you found this interesting, you should definitely give it a read!