Only one out of every two B2B marketers agree that marketing’s financial value is clear to their business, according to a new Forrester Research report. What’s more, two-thirds of CMOs in the U.S currently report feeling pressure from their boards to prove marketing’s value.
This seems at odds with the rise of marketing technologies like marketing automation that are designed to show marketing contribution to the bottom line and campaign ROI with unprecedented clarity. So what’s really behind the issue? In the words of cool hand Luke, “What we have here is a failure to communicate.”
Only 1 in 2 B2B marketers agree that marketing’s financial value is clear to their business.
Despite the push from the C-level to prove value, just four in ten of surveyed B2B marketers believe that measuring marketing’s value and financial contribution is critical. On top of that, only 8% of respondents believe their CEO finds reported marketing metrics useful. This puts marketing and the C-level at an impasse, but one that marketers are more than capable of solving.
Focus on Value
There is no shortage of technology available to marketers these days when it comes to reporting. Metrics and reports that were once impossible to see are now neatly categorized and accessible at the click of a mouse. The challenge is finding the metrics that C-level executives are after, even if they don’t know themselves which metrics those are. Below are a few ideas of metrics that can demonstrate the value executives are looking for:
A critical measure of marketing effectiveness that often goes overlooked is the velocity of the company’s sales funnel. How fast are prospects moving through the stages of the funnel to become closed deals? Increasing the velocity with nurturing campaigns and resources for sales enablement means more leads in the pipeline and ultimately more revenue.
How much does your lead flow fluctuate month to month? If you are experiencing large swings in your lead volumes, it makes it difficult to forecast sales and understand and predict marketing’s financial contributions. Being able to drill down into the details of each campaign can help you identify and predict fluctuations in marketing effectiveness and help demonstrate a deeper understanding of marketing operations.
What is your turnover like? While this metric doesn’t often fall under marketing, leads should continue to be nurtured even after they become customers. This should be one of the major nurturing stages for your company. Decreasing churn rates with customer nurturing campaigns and valuable resources can be yet another way to demonstrate marketing’s value.
How do you demonstrate value with marketing automation? Let us know in the comments below!