Measuring Marketing Success: Why Revenue Matters More than Leads
August 22, 2019 | Kirsten Lyons
A marketer’s fate is often tied to their MQL target. The need to supply great leads for sales is not going away, but is lead volume really the right measure of marketing success?
We teamed up with our friends at New Breed to help marketers explore the different ways marketers can measure their effectiveness (and improve ROI while they’re at it).
Check out some of the highlights from the webinar below, or listen to the full conversation here.
The Problem Facing B2B Marketers Today
B2B marketers are in the business of finding qualified leads for their sales team. But research shows that sales teams routinely ignore 50% of the “qualified” leads marketers worked to send them.
This might seem like sales teams are dropping the ball, but when only about 20% of those leads turn into opportunities, it’s hard to blame them for not chasing down every lead we send over.
74% of sales teams have a negative view of the marketing leads. The negative reviews our leads receive isn’t because marketing isn’t working hard—this disconnect exists because marketing and sales are held to incompatible goals.
The Flawed MQL Model
Ultimately, sales is unhappy with the leads marketing delivers because many marketers still rely on MQLs to measure the success of their programs and content.
MQLs aren’t necessarily sales qualified leads. This is because marketing and sales often work from very different definitions of quality.
MQLs are often qualified based on surface-level information, like role, company size, or industry. However, this baseline of who a prospect is doesn’t offer nearly enough information for sales to confidently invest their time following up, because they’re measured on very different metrics.
Marketing teams are set up to fail when they benchmark themselves solely on MQLs because lead volume doesn’t matter to sales teams. A sales team’s success only rests on the revenue they can drive for the business, which creates even more tension between departments.
However, when marketers readjust their goals to align with sales, they can better track the value of their efforts, and dramatically impact the business.
So where do we start?
By tracking revenue-based KPIs, marketers can prove their ROI and showcase how their programs directly impact the bottom line and grow their business. Marketers who can show ROI are also 1.6X more likely to receive a higher budget.
Find out how to start aligning with sales to target and deliver on shared goals in the full webinar. Get tangible strategies and first steps to reorganizing your marketing metrics in the recording here!