Among the primary reasons for implementing a marketing automation tool is the opportunity to reap the benefits from being able to track marketing data, as well as to measure marketing performance, with a view toward improving that performance. Many companies are somewhat in the dark about why their marketing campaigns were successful, or why they weren’t, and that simply doesn’t bode well when you’re trying to devise a strategy for growth.
In reality, at least part of your growth strategy should be based on the Key Performance Indicators (KPI’s) related to your marketing team, and of course that means that you have to have a system in place which can provide that kind of performance information. KPI data will provide all the statistics you’ll need in order to analyze what your marketing team is doing well, and what isn’t going so well.
At the risk of stating the obvious, if you aren’t measuring performance, there’s no real way to improve it. That being said, here are some of the key KPI’s your business should be tracking now, so you can understand the ‘why’ in addition to the ‘what’.
Having your marketing automation tool integrated with your CRM allows you to have a fully closed-loop system, starting with users at the very beginning of the purchasing life cycle, and being completed with data that ties purchase information back to the marketing campaign which triggered the sale. This allows you to track conversion statistics right from the very beginning, for instance with KPI’s like cost-per-lead and lead source, right to the end with conversion-by-channel and cost-per-sale.
Understanding the elements which are most successful in generating conversions can be crucial for increasing sales. Here are some other important conversion KPI’s:
There are a wide variety of KPI’s which are used by companies to measure marketing ROI and sales KPI’s, but here are some of the most commonly used for each of these, beginning with Sales KPI’s:
Marketing Return on Investment KPI’s:
When your company is in possession of all the most relevant data supplied by your integrated CRM and marketing automation systems, you’ll be in a much better position to improve sales and strategize for future growth. You’ll also be able to pinpoint trouble areas that need help, or where greater emphasis might shore up lackluster results. Strategically, it will provide you with a much better idea about where to focus your market spend in order to maximize your ROI, and get the most for your money.
The truth is, tracking your sales and marketing KPI’s can serve as validation for everything you do in those two distinct areas, and can help justify the approach you’re taking, or point the way to a better way of doing things. The information provided by a smooth-running CRM and marketing automation system will give you greater transparency than you’ve ever had before about sales and marketing, for better and for worse.
If your business isn’t already doing something like this, it would be a good idea to look into it at the earliest opportunity – because chances are that most of your competitors are already starting to reap the rewards of modern performance tracking with CRM and marketing automation.