Four Steps For Creating A Marketing-Sales Metrics Model That Drives Growth. My company offers a program that trains people to work in the innovation economy, so we’re teaching the very concepts I’m about to show you. At best, you should be able to determine the conversion rate of incoming leads and the conversion rate of your sales team. To determine how many leads you need to produce in a given time period, divide your target by the known conversion rate. Take some time to audit all marketing assets and adjust the design of your website, messaging and landing pages with one goal in mind: Add new contacts to your database. First, optimize your website for conversion: Make sure there are multiple ways to capture visitors’ information (at least one call to action on each page). Then, create gated content offerings behind landing pages. Build an automated system that is: Targeted. Keep each email focused around one key topic/value proposition. Assume no one will read your body copy.
If you’re in marketing at a rapidly scaling company, it’s essential to understand your metrics and how they directly impact the primary goals of your business.
As a chief marketing officer at a startup, I live growth marketing every day. My company offers a program that trains people to work in the innovation economy, so we’re teaching the very concepts I’m about to show you.
1. Reverse Engineer Your Target
Depending on your situation, whether it’s day one at a startup or you’re the first senior marketing hire at a rapidly scaling company, you’ll need to gather as much data as you can. At worst, that could just be your sales target and nothing more. At best, you should be able to determine the conversion rate of incoming leads and the conversion rate of your sales team.
Imagine you’ve been told your team has to support a sales goal of 125 for the quarter and you have no data other than a few people who say the sales team converts 20% of all leads. Let’s do some reverse engineering to determine how many marketing leads your team needs to generate to hit the goal.
To determine how many leads you need to produce in a given time period, divide your target by the known conversion rate.
125 / 20% = 625 sales qualified leads (SQLs)
The SQL is the benchmark for a secondary action, i.e. booked call, abandoned shopping cart, etc. Now divide your SQLs by an unknown marketing qualified lead conversion rate. Make an educated guess based on industry standards. For this exercise, let’s assume 12%.
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625 / 12% = 5,208 marketing qualified leads (MQLs)
The MQL is the benchmark for a first-touch action, i.e., content downloaded, newsletter sign-up, etc. If you want to figure out how many incoming leads/website visitors you need to hit your MQL goal, you can continue the process, 2-3% is a typical conversion rate for web traffic.
5,208 / 2% = 260,400 website visitors needed
2. Optimize For Data Capture
Now, let’s optimize your marketing channels to capture potential customers’ information. Take some time to audit all marketing assets and adjust the design of your website, messaging and landing pages with one goal in mind: Add new contacts to your database.
First, optimize your website for conversion:
- Make sure there are multiple ways to capture visitors’ information (at least one call to action on each page).
- Create forms with three fields or less.
- Give people a reason to want to learn more (determine what…
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