Measure Your Full Sales Funnel
Your B2B sales funnel has two distinct parts, Marketing and Sales, which often don’t communicate, and can frequently end up being measured in isolation.
Your Marketing team are tasked with amplification to drive visibility, but ultimately are responsible for sales leads for the business.
Your Sales team are tasked with turning sales leads into revenue for the business, and are often measured across their sales funnel, but ultimately tasked with revenue targets.
But who is responsible for the bridge between your marketing objectives and your sales objectives? Who is held accountable if there is a breakdown of communication and strategy between the Marketing team and the Sales team?
Who should be held accountable if many leads are being put in the top of the funnel, but very little is coming out the bottom? Are Marketing driving poor quality leads or are the Sales team wasting opportunities?
Who is congratulated if only a few leads are coming through, but targets are being met at the bottom? Should the Sales team be rewarded for having a high conversion rate, or are the Marketing team the heroes for only sending through good quality leads?
You can see the challenge. You may have a gut feeling, but without the correct measurement in place you will not be able to provide the answer, or help to identify the changes that are needed.
Creating measurement siloes and isolation anywhere in a business is far from ideal, but in a business critical element such as the sales funnel, this can be growth-restricting at best, and business-limiting at worst.
The Typical Sales Funnel
If you don’t already have a full sales funnel across the whole journey, I recommend you create one that works for your business. The diagram below provides a typical model for a straightforward sales funnel.
All your sales leads will pass through each stage of the funnel, and as they do, feedback should be passed in the opposite direction around pre-agreed KPIs. This upward feedback allows for improvements to be made at each stage of the funnel. Isolating and prioritising issues becomes easier and change can be implemented more quickly.
Measure all your website interactions
Most businesses have some form of tracking on their website forms, and some may have even attempted to track some other marketing activities that drive traffic to the website, such as email and direct mail. However, this is only scratching the surface of what is needed to truly measure success.
If you’re not currently measuring key performance metrics, especially those that are making you money or generating leads, how can you understand what is working and what isn’t? Tools like Google Tag Manager (GTM) have made it possible for businesses of all size to accurately measure every interaction across a site, from form submits to engagement metrics.
You need to build suitable performance metrics to measure success outside of just lead volumes. By building and measuring against all stages in the customer journey, from initial interaction to final proposal decision, you will be able to create a more sustainable and effective amplification strategy.
You can track a number of interactive, from unsuccessful form submissions (error messages) to form abandonments and skipped vs. completed fields. Solid measurement strategies also help you to track other ‘data-capture’ elements, such as file downloads, instant chat and click-to-email links. User actions, including video plays, social shares and internal links usage, how far users are scrolling on a page and what areas of a page are the most looked at.
By measuring everything across you site and combining it with measurement across the full sales funnel, you are starting to create a much more detailed and in-depth picture of what is successful and what isn’t. This will help you to pinpoint where you can be doing more to support each stage of the customer journey.
Measure Your Lifetime Value
The final key measurement needed to measure for success is to have a true understanding on what the lifetime value of a customer is.
B2B businesses typically have long lasting, and often personal relationships with customers. Understanding the average lifetime value of a new customer is critical to understanding the Return on Investment (ROI) of your sales and marketing funnel.
By linking the marketing activity to the sales funnel and then into your CRM, you can start to understand the average lifetime value of different sales interactions, different marketing activities and even the calls-to-action and content that customers are engaging best with.
Not all customers, however, are alike in terms of revenue to the business, cost of acquisition and other metrics. Having granular measurement information helps you to segment your acquisition techniques, products, customer demographics and account managers and assign varying acquisition targets, ensuring you are reaching the right segments, in the right way, at the right time.
REVIEW, REVIEW, REVIEW
When it comes to measurement, it’s key to regularly review your process and findings. What have you learnt that can be applied to your marketing and sales strategies? Do old processes need to be revised, or new ones put in place?
Measurement is never a one-off; with the correct set-up, and with regular review periods, you can ensure that you are streamline your marketing activity to yield the greatest results for your business.