Understanding Marketing Automation Analytics
How much do you know about Marketing Automation Analytics? One of the best parts of a marketing automation system is the ability to easily generate analytics and KPI that help you see instantly how well various marketing campaigns are converting contacts to sales and keeping customers. The importance of using analytics to make informed decisions is hard to overstate. According to an article in MIT/Sloan Management Review, companies who believe in the value of analytics are also twice as likely to be top performers in their industry or market segment.
What are some good KPIs that marketing automation can help track? According to the American Institute of CPAs (AICPA), marketing-related KPIs and specific measures for demand management that are predictive of corporate performance across all industries include:
- Market Responsiveness. This includes traditional metrics such as Market Share Index, but also metrics such as “Product Portfolio Index” that shows how each product or service in a portfolio contributes to revenues and profits by size and margin. Other metrics include Target Market Index, Opportunity/Threat index, Channel Profitability Index, and Configurability Index.
- Sales Effectiveness. These metrics include Sales Opportunity Index, Sales Cycle Index, Sales Close Index, Sales Price Index, Cost of Sales Index, Forecast Accuracy, and Customer Retention Index. For example, Sales Cycle Index is the number of days between initial contact with potential customers and the sales close date.
- Product Development Effectiveness. This includes New Product Index, Feature Function Index, Time to Market Index, and R&D Success Index.
Specific definitions of each of these metrics can be found on the AICPA website, along with industry-specific KPIs and metrics. As you decide which KPIs to use for analyzing your marketing success, be sure to include metrics that capture all your automated processes, from inbound marketing techniques to customer relationship management to sales fulfillment.