How To Measure The ROI Of Your B2B Marketing Efforts?

If you’re putting in time and effort, it should be worth it, right?

See, even without the specifics, you agree that hard work should justify some returns or positive outcomes. Of course, at times, you must take a risk and bet on it to work. Yet, in the end, you still need to know if it was worth it, right?

This is especially true in the world of B2B marketing, where the competition is tough and it becomes critical for marketers to understand how well their efforts and investments are paying off.

This is why marketers need to calculate the Return on Investment (ROI) — to know which campaigns, strategies and techniques are working and which are ineffective.

This is why it’s important to monitor, measure and evaluate the ROI of campaigns and strategies regularly, followed by adjusting, optimizing and enhancing their effectiveness.

If you're wondering how you can start measuring the ROI of your B2B marketing efforts, read on!

How To Measure The ROI Of Your B2B Marketing Efforts

TechDogs-"An Image Showing The Formula To Calculate The B2B Marketing ROI"

That’s the formula for calculating the Return on Investments for B2B Marketing.

For example:
Investment = $120,000
Revenue = $500,000

ROI = (500,000 - 120,000) / 120,000 x 100
= 380,000 / 120,000 x 100
= 316%

Looks pretty simple, doesn’t it?

However, there are plenty of factors that must be considered to successfully determine the ROI of a B2B marketing campaign. Also, think of the fact that many marketing campaigns are ongoing and can take a long time to reflect an accurate ROI.

With this in mind, you should consider the following steps to accurately measure the ROI of your B2B marketing efforts.

Set Your Goals Clearly

If you don’t know what you’re aiming for, how will you know if you’re hitting the mark or not?

It sounds quite simple but outlining your goals is a critical step in developing a strategy or plan. Your aim could be to generate more leads, boost sales or increase brand awareness on social media.

So, it’s important to be specific about the goal you’re looking to achieve. If the aim is to boost sales, which products’ sales will you be analyzing? Does it include the sale of allied accessories? Does it include post-sale services?

These goals also need to be assigned a timeframe against which they will be measured. Hence, you must keep in mind metrics such as Lead Value (Average Customer Lifetime Value x Close Rate), Cost Per Lead (Total Marketing Spend / Number of New Leads), etc. to measure whether you have achieved the goals you had set earlier.

Leverage Analytics Tools

How will you track the performance of your campaigns without the right tools?

The idea here is to understand what your inbound traffic looks like and where visitors are coming from. Was it from a promotional email or a social media post on LinkedIn? Which marketing style or campaign performed the best?

Answers to these questions will help you determine which channel or strategy was most effective in converting visitors into leads or customers. Such tools are easy to set up and cost-efficient, allowing users to create custom reports, automate action-based notifications and glean detailed insights.

Google Analytics, HubSpot, Salesforce and Marketo are some of the most popular data analytics tools for marketers to track and analyze user behavior.

Track The Right Metrics

You’ve got your campaign set up and some sweet tools to track its progress – but are you tracking the right metrics?

Accuracy and relevancy play an integral role in measuring the effectiveness of B2B marketing campaigns and their subsequent ROI.

For this, you need to define your KPIs (Key Performance Indicators) and choose the right metrics to track at the right stage of the customer journey. Some common B2B marketing KPIs include the number of leads captured, the number of sales, customer acquisition costs, customer lifetime value, website traffic to lead ratio, marketing qualified leads to sales qualified leads ratio, website traffic, social media engagement, email conversions, landing page conversions and others.

Furthermore, you can segregate and scrutinize the numbers based on branded and unbranded organic traffic, as well as paid, referral and direct traffic, to better evaluate the ROI.

TechDogs-"An Infographic Showing The Right Metrics To Track At Each Stage Of The Customer Journey"

Calculate The ROI For Different Marketing Campaigns

Hooray! The omni-channel marketing campaign worked!

However, did every channel perform equally well or did some part of the marketing effort go down the drain?

Hence, it is critical to measure the ROI for individual campaigns, across channels, regions, mediums, target audiences, etc., to understand the individual effectiveness. It’s also important to calculate the overheads, software subscription costs, advertising costs, training, and other expenditures associated with each channel to get a more accurate picture.

When you must move beyond calculating your ROI as a whole number and consider the impact of individual campaigns, you will be able to identify high-performing campaigns and those that did not achieve the defined goals in terms of ROI.

Remember, some marketing goals can be measured quantitatively while others demand qualitative analysis. In the end, it’s the quantitative factors that will help you calculate the ROI of your B2B marketing efforts.

To Sum Up

Measuring the ROI of your B2B marketing efforts regularly allows you to continuously improve your marketing efforts and allocate resources accordingly. It also allows you to determine whether certain investments are worth it, eventually offering you a competitive advantage over rivals.

To ensure your campaigns are performing at optimum levels, you must ensure that you devise an effective strategy and optimize operational costs before deploying them across multiple channels to diverse audiences. This can be achieved simply by understanding the effectiveness of your marketing strategies by measuring and calculating your B2B marketing ROI!

Want to boost your B2B Marketing ROI? Contact TechDogs today and witness an improved Return on Investment for your B2B lead generation and marketing efforts!

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Marketing Analytics ToolsMarketing Technology Online Advertising B2B Marketing Strategy Return On Investment ROI Marketing Spend Google Analytics Key Performance Indicator KPI Marketing Campaign Lead Generation Revenue

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