Marketing Metrics: Picking the Metrics That Matter Most

Caid Christiansen• September, 30 2015

Creating effective key performance indicators is one of the chief ways that marketers can increase the effectiveness of both their teams and their investments.

There are some standard measures that many lean on. Cost to acquire a lead, cost to convert, and return on investment are all common ways to hold the marketing team accountable to delivering cost-effective programs. However, there’s not a one-size-fits-all set of metrics that’s sufficient to drive results. And, it’s too easy to fall into the trap of simply picking the numbers that look good on a spreadsheet and are easy to track.

First, you need to define the primary purpose of your tracking and reporting. Is it to create understanding within the organization of the impact of marketing activity? Are you trying to create visibility and accountability for a marketing team to drive improved results?

Here are a few guiding principles for establishing tracking, before you start:

The metrics should be consistent across teams: Make sure that the metrics you’re tracking are agreed upon and can be influenced by all groups. For instance, make sure you agree whether you’re tracking new leads or net converted leads, and that each group understands their role in influencing the goal. In addition, a single source of data should be used so that each team is reporting on the same numbers.

The metrics should be easy to track and understand: Anyone who needs to track to the goal should have access to a recurring report that makes it easy to understand progress vs. goal (and against forecast) and understand where any variances lie.

The metrics should provide actionable data: The variances reported should make it easy to understand where any shortfalls (or overages) are coming from. A net cost per converted lead should show actual vs. forecast for both expense items and conversion stats, for example, so that shortages can be addressed, and so that you can identify and replicate positive outcomes.

Many would prefer to leave the stats to the “numbers teams”, like Finance or Business Analytics, but if you can get comfortable with forecasting and tracking, you’ll be a much more effective marketer.