Hosted on Acast. See acast.com/privacy for more information.
[00:00:00] Today we're going over part two of B2B Demand Gen, the main KPIs you should be tracking by Nick
[00:00:06] And I'm Ricky
[00:00:07] And welcome to Demand Gen Daily Podcast
[00:00:18] All right, as always, please remember to call subscribe hit us up with your questions
[00:00:22] This actually came from a question it ran a little bit long in the last one. So this is part two
[00:00:27] B2B Demand Gen the main KPIs you should be tracking. So I basically ran you through very quickly all of the KPIs in the last episode
[00:00:35] If you haven't checked it out, please check it out. Otherwise, it's not going to make sense drawing meaning out of all of this, right?
[00:00:42] What are we trying to do here? And like the goal of all these things that I said to track
[00:00:47] Month over month and it should be every single month that you're tracking this and having your formulas nice and clean in the spreadsheet
[00:00:55] Is because there's certain like benchmarks that we want to hit on these KPIs in these metrics
[00:01:00] We want to see like a ltv to calculate of three to one or better
[00:01:04] We want to see a customer acquisition payback cost of under six
[00:01:07] We want to see all of these things. We want to see at least like a 30
[00:01:12] SQL close rate like these are all benchmarks that I can give right
[00:01:16] What what actually matters when you're getting your program going and you're like out here trying to work the program to make it better
[00:01:23] It's really about that trend line, right? You're trying to figure out. It's are we getting better or are we getting worse as we test things so
[00:01:32] Here are the pitfalls of
[00:01:35] Trying to get the right KPIs and metrics if you're changing the way you sell something
[00:01:41] At the same time you're changing the source of the leads that you're trying to close
[00:01:46] Those are too many variables
[00:01:48] Because you don't know if the change to the sales process is the contributor
[00:01:53] Positive or negative and you don't know if it's the change of lead source positive or negative either
[00:01:59] So you can only be changing one thing at a time
[00:02:01] so in other words you could be getting the right traffic
[00:02:05] And it's just not closing or you could be getting the wrong traffic
[00:02:09] But if you mix the two you just don't know where you're left with
[00:02:13] Yeah, and this is how you figure it out. Remember I said track mqls versus sql mqls being just a lead
[00:02:21] sqls being sales qualified leads meaning that they adhere to client criteria
[00:02:26] if you're
[00:02:27] mql to sql ratio like the percentage of mqls that become sqls is good
[00:02:33] Which good can be contextual by industry, but it can be anything above 20% in my opinion
[00:02:39] It could be as high as 50% or 80% in some very good funds
[00:02:44] If it's more than 20%
[00:02:47] And you know that the lifetime value to customer acquisition cost is on the right side of the equation
[00:02:53] That it doesn't the cost per closes an astronomical and it's like good enough
[00:03:00] You know that the
[00:03:02] Ratio between the two might not necessarily be the problem unless you're detecting
[00:03:08] That there's a pile of mqls that never become sqls coming from a specific source
[00:03:13] In which case if it's google it could be your negative keywords
[00:03:16] If it's facebook it could be that you're running it to the wrong audiences tests like that that need to be run
[00:03:22] but
[00:03:24] Generally what you're looking for is that but you're also looking for cost per close
[00:03:29] Is the cost per close acceptable to you at the end of the day?
[00:03:32] And remember we're tracking media spend. We're tracking marketing people
[00:03:38] As part of that cost and salespeople as part of that cost
[00:03:41] So in what percentage does that hit is the marketing spend
[00:03:46] Acceptable is a sales spend
[00:03:48] Acceptable the number of people that you need in sales to close that amount or the closes big enough a problem that we very commonly see
[00:03:55] Is that you've got to maximize your wins and minimize your losses and maximizing your wins looks like not underselling something
[00:04:02] So we've seen a lot of people it's yeah when they're at bat
[00:04:05] They like swing and they always try to hit a single even though sometimes it's time to hit a double or a triple or a whole run
[00:04:12] And that makes the math on
[00:04:16] Is this profitable or is this highly favorable to us like not that good? It could look okay, but not great
[00:04:22] So there is a part of this where
[00:04:25] The marketer has to help
[00:04:28] Really go hand in hand and ask for the help of the sales team
[00:04:31] And I say that ask for the help of the sales team because the sales team
[00:04:36] Has to be recording to the marketer
[00:04:38] How good the leads are and we do this with some of our clients like we tell them that hey like
[00:04:44] Here's a spreadsheet if you don't have a crm here's a spreadsheet
[00:04:49] We want you
[00:04:51] To rate every single lead that comes in through the system on a scale of one to ten and why
[00:04:57] And we set up some like very high level parameters
[00:05:01] On that scoring. So hey, this is a one
[00:05:04] This is a five
[00:05:05] This is a seven. This is a nine. This is a 10. Whatever the key numbers are
[00:05:09] Tell them like this is why if they don't meet client criteria
[00:05:11] They're automatically like the lower five immediately
[00:05:14] If they don't meet client criteria if they if it's if they hit miss one of the client criteria
[00:05:19] Is that we could do without it but everything else is good
[00:05:22] It's okay like it might be a five because the qualifications of the criteria are like that five and
[00:05:28] What why this helps is when the sales people give this to the marketing team can make sense of like
[00:05:33] Where did this lead come from?
[00:05:35] And what the second that you figure out this is where this lead is coming from these are where the good ones are coming from
[00:05:41] This is where a bulk of the bad ones are coming from
[00:05:44] It enables the team to go back to all of these kpis and metrics that I mentioned in the first episode. Oh like
[00:05:52] That one source sales is never supported above five ever
[00:05:57] From that source if we eliminate that source
[00:06:00] We're going to cut our media spend
[00:06:03] It by 50 percent or should we run tests to try to get good leads out of this source?
[00:06:10] Yeah
[00:06:11] overnight your mql like your mql to sql ratio might have been 20 percent
[00:06:16] overnight it's 40 percent
[00:06:19] Magically and your costs are half gone and it's a process of elimination rather than addition
[00:06:24] I never recommend people do this until they iterate and test the one thing so you can really put it to bed
[00:06:30] Without having to revisit it in the future
[00:06:34] But the whole point of it is that these kpis and metrics in a bubble like an inside of the marketing bubble
[00:06:40] Don't do you any good?
[00:06:42] Meet that telemetry from the sales team so that you can uncover
[00:06:48] And figure out where are the good leads? Where are the bad leads?
[00:06:51] How can we increase our mql to sql ratio? How can we lower customer acquisition costs?
[00:06:57] How can we even increase lifetime value?
[00:06:59] Our positioning our ads that are marketing materials externally
[00:07:04] Every single lead that comes in just wants to do a setup. They don't want to do ongoing work with us
[00:07:10] Why are there some channels that are bringing you in those like long-term clients and others that are bringing you short-term clients
[00:07:17] This is all the quantitative or the qualitative stuff that goes with the quantitative side to help you understand and make sense of your marketing program
[00:07:28] So again, if you go back to that first episode and look and break down all the items that I mentioned
[00:07:34] Get those down as a baseline because when that marketing or that sales insight comes from sales to marketing
[00:07:42] You're gonna be able to then leverage all these numbers and all of these like
[00:07:46] KPIs that I've mentioned to you and make
[00:07:50] Based on what sales is saying
[00:07:52] All right, so if you have any questions on this, please feel free to reach out until next time