Some businesses obsess over trying to prove the marketing ROI of individual blog articles and organic social media posts. However, many skip the necessary step of following conversions down the funnel to revenue by considering the entire channel. Having a “category” view provides better insight as to which marketing channel drives business results.

Categorize based on the point of conversion

It’s important to understand how the lead was created when entering the sales pipeline. In marketing, each lead can be attributed to a “grouped bucket” when thinking about classifying conversions. Conversions could include a demo request, contact sales form, gated content, paid social lead ad forms, events, webinars, and review sites like Gartner and G2. This information should, ideally, go into your CRM.

Follow the marketing conversion down the funnel and build formulas

After completing the spreadsheet with the categorized points of conversion, you can begin to add more data:

  • Advertising spend (if applicable)
  • Number of leads created
  • Number of opportunities created
  • Number of closed or lost opportunities
  • Total closed / won revenue
  • Annual contract value (ACV)
  • Close/won average sales cycle
  • Win rate (only on closed)

Next, create formulas to gain better insights: lead —> opp %, lead —> win %, pipeline velocity, advertising CAC, ad CAC payback period

Analyze your spreadsheet full of data

With all of your sales and marketing data in one place, the spreadsheet will quickly show your ROI on the points of conversion that appear to drive actual business growth.

Limitations of conversion tracking

Although there are several limitations, a common concern involves attribution modelling – if it was first touch or last touch. To get ahead of this, you can do this based on if they were a member of the campaign/completed conversion before becoming a customer. They could show up in multiple categories.

Other metrics to prove your marketing ROI over time once you eliminate tactics that aren’t resulting in growth are:

  • Blended Advertising CAC / Blended Advertising CAC payback period
  • Cost per qualified opportunity created

Individual marketing initiatives will drive down those metrics above, even helpful content in whatever form. At a high level, this is what’s important, not which blog article drove the most leads.

Any other metrics you’d recommend showcasing for marketing ROI / or common objections you face with this topic?

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