How to Highlight Marketing’s Value
Mike Nierengarten of Obility Consulting continues the conversation from the August 2014 issue of Website Magazine on "Marketing Automation Done Right: How to Efficiently Track and Optimize Performance," below.
Better reporting yields a more complete picture of marketing’s value to an organization - don’t ignore the potential business generated by marketing; one way to measure this is to create a report comparing ad network cost to total sales opportunities – a marketing cost to sales pipeline chart. This data can be pulled from the CRM or marketing automation platform.
Marketing automation reporting can also provide insight into how to best budget for each ad network. Despite C-level desires, PPC channels have a limit on performance. Simply throwing more money at a channel will not guarantee proportionately more leads and opportunities. Marketers see diminishing returns over time as they target campaigns further away from core keywords or demographics. Spend efficiency reports can help identify whether a channel’s performance has started to plateau or is not yet saturated.
Spend efficiency is measured by plotting channel spend vs. leads or channel spend vs. cost per lead (CPL). If leads increase at a slower rate or CPL increases substantially as spend increases, marketers should consider devoting money to a different channel and scaling back on the existing channel.