Impress Your Boss With These Must-Measure Metrics

Impress Your Boss With These Must-Measure Metrics

December 27th, 2012
Pick the metrics that matter for boosting your marketing budge.

Out of the hundreds of possible metrics, what should a data-driven marketing team track? Choose information that directly relates to the revenue and profitability metrics that concern the CEO, CFO and the board, says Business 2 Community.

Every marketer should be aware of these measurement do's and don'ts:
 
  • Pursue metrics that measure business outcomes and improve marketing performance and profitability instead of 'feel good' metrics that sound good and impress people. It raises the question in the mind of fellow executives whether those metrics accurately reflect the financial metrics they care about.
  • When it is difficult to measure revenue and profit, marketers often end up using metrics that stand in for those numbers. This can be OK occasionally, but it raises the question in the mind of fellow executives whether those metrics accurately reflect the financial metrics they really want to know about. Always report on profit if possible.
  • The number one metric used by lead generation marketers is lead quantity; too few companies measure lead quality. Focusing on quantity and quality can lead to programs that look good but while delivering great profits.
  • Pay attention to the difference between effectiveness metrics (doing the right things) and efficiency metrics (doing – possibly the wrong – things well). Having a packed event is no good if it’s full of all the wrong people. Effectiveness measurements convince sales, finance and senior management that Marketing delivers quantifiable value
 
The worst kinds of metrics to use are “cost metrics” because they frame Marketing as cost center. If you only talk about cost and budgets, then no doubt others will associate your activities with cost. A real life example from Business 2 Community illustrates the point clearly:
 
Recently, a marketer improved his lead quality and simultaneously reduced his cost-per-lead to $10. Thrilled with his results, he went to the CEO to ask for more money to spend on this highly successful program.
 
Did the marketer get his budget? No. The CEO decided the reduced lead cost meant Marketing could deliver the same results with fewer dollars – and so she cut the marketing budget and used the extra funds to hire new sales people.
 

What other must-measure metrics do you include in your reports to the top? Let us know in the comments.

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