One of the biggest challenges that we've found digital marketers face today is how to set and measure the goals for their department. Of course, every company has different goals it hopes to achieve with its marketing. However, for most B2B companies, teams are tasked with lead generation, sales-pipeline contribution and revenue generation, or what we like to call pipeline marketing.
Before we get too far into setting your own goals—and to provide a little inspiration on goal setting—check out this great post on how some of the best in the business set their goals.
Inspired? To help marketers make this leap, we've built a visitor-to-customer revenue model you can download here:
The template will take you through these steps, working backwards from revenue goals all the way to the top of your funnel and show you how your company compares to other B2B companies along the way.
While assessing this model remember, in the words of Tom Tunguz:
"An increase in effectiveness at any stage of a sales funnel cascades through to the end funnel. But improvements to the early parts of the funnel are more important than those later in the funnel, because they meaningfully improve key SaaS metrics like cost-of-customer acquisition and pay-back period."
Without further ado, let's get to it:
The first step of your model is to determine how much revenue your marketing and sales teams need to generate for the 2015 fiscal year.
The second step in your model is to determine the percentage of this revenue that will come from your digital marketing efforts—with prospects passing through your website—and move through your inbound lead's marketing-to-sales handoff process.
If you're not sure where to start, Insight Venture Partners' benchmarks suggest that marketing sources 41 percent of a B2B company's pipeline. Although, we've seen this number vary substantially based on the current structure and goals of each company.
The third step in your model's development is to determine the average revenue generated per customer. Knowing the annual value of your customers is pivotal in evaluating your overall pipeline, as it reflects in both the payback period and the lifetime value when analyzed in conjunction with customer acquisition cost.
This will yield the number of new customers that need to be won to meet your revenue goals.
Now it's time to enter our current funnel conversion-rate metrics. Start by entering your opportunity-to-customer close rate.
If you don't know these numbers off hand, we've included some B2B benchmarks in the template itself that you can use as an estimate.
At this stage, we've also included a column you can use to input your goals if you aren't achieving the desired conversion rates at any stage of the funnel, so you can clearly see the impact of increases in performance at any particular stage.
Repeat step 4, this time entering your SQL-to-opportunity rate.
Enter your MQL-to-SQL rate.
Enter your lead-to-MQL conversion rate.
Enter your website-visitor-to-lead conversion rate.
Again, if you don't know your website conversion rate off hand, we've included B2B marketing benchmarks by industry from across HubSpot's entire client base that you can use as an estimate.
Enter your actual annual website visitors.
Not too hard, right? Download our marketing goals calculator, and see how your inbound marketing efforts can help your company hit its growth goals.
Ready for more?
Once you've completed this task, you can also use our service-level agreement template to dive into your buyer personas, marketing channels and lead value to get better look at just how you're going to acheive these goals.