Data-driven marketing is the new normal.
The return on investment generated by your content marketing efforts is the top question for any marketer these days. Analytics has become an integral part of any marketing strategy – in case it isn’t in your organization, you better learn.
Today, metrics go beyond simple follower count, like count. With the advent of advanced analytics tools and the growing number of platforms that allow us to speak directly with users, marketers pose a greater challenge on how to measure the true impact of marketing efforts. on the results of the organization.
So what are the metrics that can prove your content strategy is having a business impact? How can you better influence your C-suite to unlock higher marketing budgets? To start, put yourself in their shoes!
Choose the right words
There is a big difference between how a marketer would speak and what the C suite would use. For example, as marketers, we tend to use words like the cost per click of an advertising campaign. However, when a C-suite hears the term “cost per” marketing, they may think of the marketing team as a cost center versus an enabler of business growth. Always talk about “revenue by” or “contribution” with the executive suite, with the aim of creating the perception that the marketing function is a source of commercial revenue.
Yes, the language used to speak with the C suite is just as important as the metrics we use to demonstrate marketing success. A good way to approach the leadership team is to apply buyer persona principles to them as well. Each member of the C-suite will have different issues and needs, and you need to appeal to them to get your point across. By choosing your words wisely with them, your chances of getting the budgets or marketing resources you want increase and you can create best-in-class content.
What are these good words?
So the next question would be, if we move away from general metrics like cost per click, subscribers, etc., what language can we use instead?
According to HubSpot, some of the key metrics that may catch C-suite’s attention include:
- Customer acquisition cost (CAC): the formula to calculate this would be the amount the company spends on marketing and sales costs (including ad spend, salaries, overhead) during a given time period , divided by the number of new customers in the same period.
- Relationship between CAC and Customer Lifetime Value (CAC:CLV): Most C-suite members will be interested in the overall value a customer can bring to the business, especially if you are a business based on SaaS and focused on subscription or recurring revenue models. Being able to show the cost of acquiring a customer versus the total value they bring can be incredibly powerful in demonstrating the value of marketing.
- CAC Payback Time: This is the time it takes to recoup customer acquisition costs. You can calculate this by taking the CAC and dividing by the margin-adjusted revenue per month for the average new customer you just signed up, and the resulting number is the number of recovery months.
- Percentage of customers driven by marketing: What percentage of new customers came initially through marketing efforts? What was the first point of contact?
- Percentage of Customers Influenced by Marketing: This percentage is calculated by looking at sales where marketing has had some influence. It can be an initial contact, but it can also be content or other marketing efforts, such as webinars, roundtables, speaking opportunities, that helped nurture the prospect through the funnel.
Prove your worth
Always remember that the C suite ultimately seeks the value of all teams in the business and marketing is also a part of it. Strive to gather the right metrics and research to back up your content marketing campaign, including the ROI and cost of customer acquisition statistics mentioned above. Then present your findings to senior management using their language. By doing this, you will find that they will not only listen to you carefully, but also the success of your content strategy.