B2B Performance Marketing: The Complete Guide

Needless to say, performance marketing has become an increasingly important tool for B2B companies looking to drive growth and revenue. However, with so many channels and strategies available, it can be difficult to know where to start or how to optimize your efforts for maximum impact. That's why we've put together this comprehensive guide to B2B performance marketing, designed to give you everything you need to know to succeed in this space!

B2B Performance Marketing Metrics

B2B marketers use marketing metrics to keep track, record, and measure how well their campaigns are performing. These numbers may change over time and require careful monitoring to accurately assess a campaign's success and determine if any adjustments are necessary.

1. Marketing Qualified Leads

Targeted leads are people who have shown interest in a B2B company's product or service through marketing efforts. These leads match the ideal customer profile and can be added to the sales pipeline. It's important to screen and assess these leads before passing them to the sales team to prevent poor-quality leads in the future. Calculating the cost per MQL (Marketing Qualified Lead) can help with future B2B marketing campaigns.

To calculate, divide the cost per lead by the total marketing spend for the number of new leads.

2. Sales Qualified Opportunities

This metric is important because it tells you which leads are likely to become customers, as determined by your sales team. It can also help you see which campaigns are doing well and predict revenue.

To measure this, you can calculate your Cost per Sales Qualified Opportunity (SQO), which is similar to Cost per MQL:

Cost per SQO = Cost Per Lead (CPL) / marketing spend for total number of new opportunities.

3. Web Traffic

Measuring website traffic can help you determine the effectiveness of your marketing campaigns and SEO efforts for your desired locations. You can track traffic using Google Analytics, but it's important to focus on specific lead sources like organic keywords or targeted ABM campaigns for more accurate results.

4. Sales Qualified Leads

An SQL is a potential customer who is interested in your product or service. Counting the number of leads you get from each campaign is important. This helps you see which ads are the most effective and cost-efficient.

To calculate your lead cost, you can use this formula: Cost per Lead (CPL) = total marketing spend / total number of new leads.

5. Closed-Won Deals

Closed-won deals or opportunities are important metrics for measuring the return on investment (ROI) of your marketing efforts. These are contracts that show a lead has become a customer. It's especially useful to track account-based marketing (ABM) strategies.

6. Monthly Recurring Revenue

MRR is a metric that tells you how much revenue your company is generating from all recurring deals each month. It's an important B2B marketing metric that can help you evaluate the success of your campaigns.

To calculate MRR, simply add up the monthly revenue from all recurring deals in a given month.

7. Cost per Acquisition

Your cost per acquisition (CAC) is a metric that shows how effectively your B2B sales and marketing teams work. You can determine this by dividing your marketing expenses by the number of new customers obtained from a specific campaign.

8. Average Sales Cycle

Measuring the average time it takes to turn a prospect into a customer is important. By using this metric, you can identify how long it takes for each campaign to convert and make adjustments to shorten the SaaS sales cycle.

To calculate your average sales cycle, divide the total number of days it takes to close a deal from the initial touchpoint by the total number of won deals.

I hope this helps you understand your metrics better but for read the full article just click here