First, think about the outcomes you want to achieve from your marketing. Now, write down all the behaviors, actions, and key indicators that lead to those outcomes for your organization. Those will be the measurables on your Scorecard. You are right, they do vary by company, by industry, and by target market. After you have the list of measurables then go to work building your Scorecard to keep a pulse on your business and navigate to outcomes.
What marketing metrics do you track in your Scorecard? I realize these will be different for every org. We are B2B, if that helps. I'm struggling with this one - how granular to go (ie. website hits, social media audience size). Open to ideas!
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There are always lots of metrics you can track. The trick is finding the right ones that provide the most value, specific to your business. In one of my past companies, we had what I thought was a killer KPI doc - many tabs, lots of metrics, and even cool trend graphs. But, we spent way too much time reporting and not using most of the info. I wish I had EOS back then.
That said, here are three that I love... that might be ones to consider for you. Certainly, follow the EOS approach first. After you've got your initial list down, I love diving in - see what best practices are in a particular industry - read blogs - etc... - really just to gut check I'm looking at the right 5 to 15 measurables. They need to be the right ones for you, not everyone else.
For consideration among your list...
Net Promoter Score (NPS)
I love this metric because it's focused on your customers. Would they refer you? You can go really granular on things like Time on Site, Bounce Rate, Social Engagement and so forth, but ultimately have you met your promises to your customers and do they like you enough to refer you to others. If you're not tracking this, this is one I recommend to almost every company. Letting customers know you truly want to hear from them and you value their feedback can in of itself be a powerful force.
Customer Acquisition Cost
As an entrepreneur, I loved dialing in this metric as it provided for a clear trigger mechanism. Of course, we had to test various marketing and sales tactics to get there. But, we knew what this number needed to be in order to scale and we tested and iterated approaches until we found our sweet spot. In one new product line launch, we started with a $200 CAC but it only took us 2 months to get it to less than $20, which was our target. It helped us realize if the product would be viable and which channels we could use to launch it.
Customer Lifetime Value
Depending on your industry and products/services, this can be a tricky metric. But, there is always a starting point. I love this metric because it puts the focus on creating a lifelong relationship versus just a transactional one, with the caveat that your intention is to build a relationship - there are some who only care about the one purchase. When we plan our marketing, we should be considering the full customer journey - from sales, onboarding, education, loyalty, referral, proactive and reactive retention, and win-back. We focus on the value of truly treating each customer well. But, it also enables us to learn which customers are most valuable and require a certain amount of budget and attention.
I think that what has been said below is very valuable - what does success look like for you & then using metrics that show this. In terms of real-life scorecards with my clients in the B2B space use:
- # of qualified leads received
- # of discovery calls held
I also attach a document that I put together years ago that just listed a number of possible measurables for my clients that I was helping with their business & marketing planning. By no means a complete list but things that we often used. Hope this helps - https://www.dropbox.com/s/nqzr96ukmqowj3k/Measures%20of%20Success.pdf?dl=078
A different twist to some of the standard marketing metrics like website leads and traffic is to add "Ideal Client" to the beginning. In the B2B space, If your Ideal Client/Target market is well defined, you probably have (or can get) a pretty good idea of the establishments that meet that ideal client criteria.
Another more salesy metric is the sales stage conversion rates as Debra Chantry-Taylor66 pointed out. There is a downloadable spreadsheet in the blog linked below that you can use to calculate the impact of improving the various stages of your Sales Process.