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2014 Planning Metrics for B2B Marketing Leaders
Vince Koehler / Sales Benchmark Index / October 1, 2013
The Holy Grail of 2014 Planning: Marketing Contribution as a % of Total Revenue.
2013 is the last year executives accepted activity-level results from marketing. CEO’s don’t accept activity reports from Sales leaders without revenue results. Expectations of marketing accountability have increased to the level expected of sales performance.
It’s easy to get caught up in reporting activity and miss the big picture. There is so much interesting click data available. Executive marketing leaders need to push the debris aside. Focus on the core business drivers that B2B Marketing is fully capable of providing. Help your team focus by giving them the big picture of the business.
The top three success metrics for B2B marketing include:
1. Lead Generation team % of Contribution to Sales Revenue (Wins)
2. Lead Generation team % of Contribution to Sales Funnel (Opportunities)
3. Quantity of Sales Qualified Leads delivered to Sales (Leads)
By far the most difficult to arrive are the first two metrics. CMO’s are transitioning away from soft success metrics. The metric of choice in 2014 is centered around Marketing Contribution to revenue. Specifically the contribution % of Total Revenue and pipeline Opportunities.
Sounds great doesn’t it? Calculating Marketing Contribution produces a hard metric that is highly relevant to the CEO. However this elusive metric is difficult to quantify. The following two-step framework will help you define contribution.