B2B Marketing KPIs
B2B marketers have unique challenges. Their sales cycles are typically longer, and they have more decision-makers in their target markets. They also must use different solutions to scale their success. B2B marketing KPIs should take these factors into account. Below are some examples of metrics to keep an eye on.
Product engagement rate
In B2B marketing, product engagement rate is a B2B marketing KPI. This metric tracks how much a user uses a product or service over the course of a month. A decrease in product engagement will increase the likelihood of churn, so it’s important to keep an eye on it. Product managers can do this by analyzing key feature usage and boosting retention offers. A KPI for product engagement that focuses on average monthly session duration may be misleading for some companies.
Another B2B marketing KPI that can be used to measure customer engagement is the customer lifetime value. This measure allows businesses to determine their ideal customer profile. This ideal customer is one who spends a lot but also continues to buy. This information helps marketers define their marketing campaigns to attract and retain these customers.
This metric can help compare product engagement across segments. For example, it can help marketers measure engagement rates across free and paid users. This can be especially useful for software businesses. Using this KPI in conjunction with other business metrics will help them see how their business is progressing.
Product engagement rate can also help businesses understand how frequently their customers use a product. Higher engagement rates lead to higher customer lifetime value and lower acquisition costs. Product engagement rate can also be used to determine what factors influence product engagement. Product owners can assign engagement scores to various features in their products to measure the effectiveness of their marketing campaigns.
The product engagement score can be scaled from one to ten, or from one hundred to a thousand. The point value of the score should reflect the relative importance of each event to overall engagement. In general, higher-frequency events should be given a lower score, while low-frequency events should have higher values. The total engagement score for a user can be computed by adding individual values.
Product engagement rate can help businesses determine whether a particular B2B marketing campaign is worth its investment. When it comes to content, 70 percent of B2B content goes unused or doesn’t match buyers’ needs. As a result, marketing teams are pouring time and money into creating content, but can’t guarantee its effectiveness.
Lead response time
Lead response time, also called speed to lead, is a measure of how quickly a business can follow up with a lead. According to Forbes, the average lead response time is 47 hours, which leaves enough time for your competitors to reach out and potentially change your lead’s mind. Ideally, you want to be able to respond to a lead within a matter of minutes.
Lead response time is crucial for inbound sales strategies, which rely on prompt responses from prospects. In a study by Harvard University, companies that responded within one hour were seven times as likely to share a meaningful conversation with a decision-maker than those that took 42 hours to respond. Decision-makers have a lot to do, so responding quickly to leads is critical to getting them to the next stage of the sales process.
A B2B marketing KPI and lead response time is an excellent ways to gauge your progress in generating leads. However, it is important to remember that lead response time is only one of the metrics that you can track. It can be useful to track leads at different times, such as weekly or monthly intervals. Tracking lead response time can help you improve your speed to lead, as well as identify areas where you need more support.
A customer lifetime value metric helps you define your ideal customer profile – a customer that spends well and buys more frequently. Monitoring customer lifetime value helps you plan and implement your marketing campaigns accordingly. Your primary goal is to maximize customer lifetime value and generate more revenue.
A B2B marketing KPI, Net Promoter Score, is also becoming more relevant. It measures the customer’s loyalty to your company. A high score means more satisfied customers. Lowering churn is important because it means higher customer satisfaction. In this way, it can help you predict future revenue and budget accordingly.
A lead’s response time can tell you whether a marketing campaign is successful or not. An average response time of 3 minutes is a good indicator of success. The percentage of inbound requests that produce a positive outcome is also an effective KPI. For example, Cognism targets a response time of fewer than three minutes and a 70% outcome rate. You can experiment with different KPIs to see which one works best for your business.
The churn rate is a metric you can use to measure your customer retention rate. It is a measurement that can vary depending on seasonality and the type of product or service you’re selling. Various formulas are available to measure churn, each of which offers different insights. For best results, consider combining a few of them.
To understand your churn rate, you need to understand why your customers leave. While customer analytics may provide you with a few hints about product or service issues, they may not be telling the full story. It might be misleading your customer management. Besides, this data is not as helpful as qualitative insights from customer interviews.
The churn rate in B2B marketing can vary widely. However, you should consider the churn rate as a starting point for customer retention planning. It can help you determine how you can improve your customer retention strategy by focusing on the reasons that customers leave and why they leave.
If you have a subscription-based service, you must know how many people will churn in a given month. Many SaaS services publish their churn rate so that you can see the percentage of customers who drop out. For instance, Netflix has one of the lowest churn rates in the video streaming industry, at just 3.3% per month. That means that 96% of their subscribers will stay on the website.
Churn is a normal part of SaaS business models. Some analysts consider a 15 percent annual B2B churn rate acceptable. Others set a goal of five percent or even lower. Ultimately, a lower churn rate is better for your business.
The churn rate is the percentage of subscribers who cancel their subscriptions or do not renew their subscriptions. For subscription-based businesses, a low churn rate indicates that the business is stable and recurrent, while a high churn rate indicates a high level of customer turnover.