This blog post summarizes an opportunity to establish measurements of marketing campaigns with respect to sales effectiveness.When a company decides to implement a crm, it gives the company a unique opportunity to align marketing and sales processes. Having a crm means that a company has one centralized system where all data about campaigns and sales are stored. The data available and the crm reporting functionality gives a company the opportunity to set up measurements and KPI of marketing and sales processes. Well defined set of KPIs shall create a push to close a traditional gap between marketing and sales. The gap can be described by a situation when marketing produces a lot of leads and sales are not closing deals. Therefore a set of marketing KPIs shall also contain number of closed deals as one of the indicators. This will ensure that marketing will also be evaluated by the quality of leads and it will align marketing and sales to the ultimate goal – more sales. Another important point that KPIs should help to evaluate are marketing activities producing leads. So, we can set a simple rule there shall be a campaign defined for any marketing activity(s) that produces leads. From that moment, measuring of marketing performance will transform into measuring of performance of individual marketing campaigns in crm. This will bring the benefits of analytical insight and operational flexibility.
Suggested marketing campaign KPIs are following:
- Number of new leads
- Cost of a new lead
- Number of new qualified leads
- Volume of new sales opportunities
- Volume of closed deals
- Marketing cost per closed deal
Consider the proper time range of the KPIs, at most cases weekly measurement will be a compromise between operational effectiveness and relevance to a measured data. Compare the actual KPI values with the set objectives and then analyze the reasons for deviations and derive the relevant corrective actions.
For further analysis (e.g. to find out the reasons for over performance or underperformance) consider establishing measurements based on KPI breakdowns by analytical view such as marketing channel, marketing campaign, product, reason of failure and sales people.
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