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Marketing automation performance metrics

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Jovana Stevanovic
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Previously, we have talked about a step-by-step process for implementing a marketing automation solution. However, even if the original implementation was successful, there are a lot of ways something can go wrong, such as poor sales and marketing alignment, incomplete content, and so on. The difference between businesses that fail and those that don’t is in tracking metrics and evaluating effectiveness of your marketing automation efforts.

Depending on the way your organisation is using marketing automation, some metrics might be more important to you than others. In this article we’ll discuss four different types of metrics marketers recommend that each company should consider when determining whether the marketing automation goals are being met.

Activity metrics

This particular metric relates to your team using the marketing automation solution that you have. In order to measure other variables, you need to ensure the software is actually being used. The marketing automation tools require a significant investment of both time and money by your organisation, which is why they need to be used frequently and appropriately by your team. Here are some of the metrics you can consider when evaluating activity:

  • Number of emails sent – This will greatly depend on the rules you have set when it comes to sending emails from your marketing automation software. You need to make sure the team is aware of your expectations and different migration processes.
  • Behavioral campaigns – Marketing automation is all about targeting specific groups of people and tailoring content specifically to them.

These two metrics are just suggestions since a lot of businesses use marketing automation software for sending emails and engaging their customers and prospects. You should determine what features are the most important to your organisation and measure their use.

Response metrics

After you ensure that your team is using the marketing automation software you have invested in, the next question you should be asking is what is the solution actually doing for your company? This is important to know because one of the primary goals is to simplify the communication with customers and prospects and increase the engagement.

How are your customers responding to the communication? Here are some things to measure:

  • Website traffic – You should be directing prospects to your website through email communication. One way to determine if your prospects are actually paying attention to what you are saying is observing the visits on your site.
  • Open and click-through rates for emails – Open rates are difficult to measure accurately because they are tracked based on an image loading in the recipient’s inbox. In most email browsers, including Microsoft Outlook, image loading is turned off by default. However, click-through rates will give you more precise information when it comes to determining whether your prospects are doing what you want them to.

Efficiency metrics

Efficiency metrics will provide insight into how successfully your marketing automation solution is being implemented. Are your communication efforts actually yielding some results? Are more leads converting? Pay attention to the following:

  • Cost per customer –Your sales team probably needs a lot of time to educate those leads that aren’t sales ready, and that can cost you a lot of money. Marketing automation software will allow you to automatically inform tens, hundreds, or thousands of people at once. This can help bring those leads to the stage where they are ready to be taken over from your sales team and converted into customers.
  • Sales-ready leads – When a prospect fills out a form on your website that triggers the drip campaign, which we discussed here, the lead goes through the nurturing process. If you are effectively nurturing your leads, they will be more likely to become your customers.

Value metrics

The bottom line most companies are interested in is if their marketing automation is paying off. Here are some numbers to look at when evaluating if the marketing automation investment is paying off:

  • Revenue – This doesn’t require any further explanation. Simply ask yourself are the lead nurturing and other efforts generating more revenue for your business?
  • Return on investment (ROI) – What is the cost of your investment in the software and the employees running it comparing to your revenue?

 

Regardless of what marketing automation software you are using, one of the most important things is to evaluate its effectiveness. Performance metrics discussed in this article are just some of the suggestions. It is up to you to decide what factors are crucial for your company and find out a precise way to measure them.

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About Jovana Stevanovic

Jovana Stevanovic
Having studied, worked and lived abroad for a number of years, Jovana has developed a diverse set of skills and a unique perspective into the business world, which she applies in her current role as Marketing Automation Consultant. Her passion for online marketing and a keen interest in global marketing trends are what drives her to produce effective online campaigns for international clients in the IT sector. Jovana graduated from St. Cloud State University with a Bachelor of Science degree in Marketing and a minor in Public Relations. Jovana enjoys learning languages and is fluent in Serbian, English and Italian. Her other interests include social media, travelling and cooking.