Marketing managers are often struggling to gain full respect from the executive teams. The reason is often pretty simple, it is because of the information they present.
The executive teams are looking for numbers and KPI’s that shows business value. Sales numbers, production costs and other efficiency metrics. Business data that can be used to make decisions to improve the business.
Marketing managers however, are often presenting other types of data. For example advertising reach, number of visitors at events, hits on the website and likes on Facebook. These are important metrics to manage the daily operations within a marketing team. But they are not the kind of business metrics that the executive team is looking for, since they are not directly linked to any business results.
There are better metrics and smarter KPIs that marketing managers could use to grow the respect from their executive teams. At Musqot we often recommend our customers to measure the number of leads. This is a simple and very powerful metric. It is easy to follow up and to link to the marketing activities and you can also attach a value to each lead. Provided that you know the closing ratio and average deal size – you can easily calculate the value of each lead. And since the leads can be linked to a specific marketing activity or a combination of activities, it is a great KPI that clearly shows the business contribution of the marketing organization. Measuring the number of new leads and correlating them with the marketing activities is one of the easiest and yet most valuable marketing metrics for B2B companies.
For B2C companies, it is often easier to identify the relationship between marketing efforts and revenue. Although it can be challenging to directly correlate a marketing activity to the sales, there are some short-cuts. One is to isolate sales revenues and marketing activities during a specific period of time, and visualizing them in the same calendar view. Simple and very powerful.
So what the marketing managers need in order to get the recognition they deserve, is simply to be equipped with the right information, the right KPIs. To be prepared with relevant business metrics, rather than ”vanity metrics” such as hits on the website, no of visitors or likes on Facebook.