This is the second post in a 5-part series on hidden attribution flaws marketers should watch out for in their marketing strategy.
In a recent Perficient Digital survey of B2B organizations, 92% of marketing leaders stated that proving the impact of marketing campaigns was a growing priority for their company. Last week we talked about four ways data inaccuracies can hinder proving impact. Today I’m going to talk about the second hidden attribution flaw many marketers make – focusing on low impact metrics.
Low-impact metrics are the metrics that show engagement but do not prove impact on revenue. They are important but are no longer the most important metrics. CMOs are under more pressure than ever to prove impact in a short amount of time. They need to know which marketing efforts are driving real business growth.
Here are 5 signs you are likely focusing on low-impact metrics:
- Scoring leads based on minimal content interaction
- Focusing heavily on basic engagement (email measurement) or volume metrics
- Campaign focus on acquisition
- Top-of-funnel attribution only
- Not tracking leads all the way through the pipeline to see which efforts actually impacted revenue
Here are a few reasons why:
- Status quo – these are the metrics marketers have been reporting to their leaders for years.
- Lack of strategy – revenue metrics may not have been a primary focus when the marketing automation platform was implemented.
- Weak executive buy-in – as revenue metrics are still somewhat new in the B2B ecosystem, CMOs may not be asking for these specific metrics. This is already shifting though, as CMOs are going through intense scrutiny around what their role means to the organization. The need to prove marketing impact on revenue is becoming the standard in more organizations.
- Limited by tech stack – even though marketers have dozens of technologies at their fingertips, they were configured with a focus on running campaigns. Marketers expected that the platform would report key metrics. This is often not the case when it comes to tracking advanced marketing metrics like influence on revenue. Additional reporting modules may need to be purchased, or a new reporting tool may need to be added to the stack. If this insight is discovered after the technology is purchased, marketers are often left without the additional budget to purchase the technology needed to connect the full attribution picture.
Here are 3 things to consider when thinking about how to shift to higher-value metrics:
1. Identify the revenue metrics you want to work towards measuring
We often recommend these 9 marketing metrics for B2B marketers, but here are three to consider putting at the top of your list:
- Pipeline influenced by marketing
- This is important for forecasting and allows you to see which programs and channels are leading to opportunities
- Revenue influenced by marketing
- This shows which marketing efforts have influenced closed-won deals
- Top channels & programs contributing to pipeline and revenue
- This helps in understanding which channels and programs contribute most to pipeline and revenue
- Pipeline influenced by marketing
2. Identify what capabilities your tech stack has (and does not have) to measure your desired metrics
Before you think you need another platform, make sure you are getting everything out of your existing tech stack. Also, make sure you understand to what extent your systems are configured to leverage the available capabilities. If you don’t feel you have the expertise to thoroughly evaluate your tech stack’s potential, ask for help.
3. Adjust the configuration of your martech platforms to measure exactly the metrics you desire where possible
Building on the recommendation above, if you discover your marketing automation platform could report on revenue metrics if some configuration changes are made, take the time to make those changes. This establishes the proper foundation so you can build and scale a successful program. If you aren’t sure how to configure your systems for optimal performance, ask for help.
To learn about the other hidden attribution flaws marketers should look for, download our guide below.