Creating a strategic demand generation strategy, often shortened to the more convenient “demand gen”, is not enough in and of itself. Your business needs demand generation metrics for its digital marketing initiatives to succeed. Ignore demand gen metrics and you won’t have a good idea as to whether your marketing strategy is actually generating the results your business needs for financial success.
How to Tell if Demand Gen is Working
Demand generation metrics quantify demand generation marketing. Demand gen is a process in which a business uses marketing material to heighten awareness of products/services and also the demand for those offerings. The aim is to connect with additional members of the audience in a reasonable period of time through artful content marketing that establishes brand authority and boosts sales though connections with coveted leads.
Demand gen requires strategic alterations as time progresses. Demand gen does not end after the prospect converts nor does it end after an initial run. Demand gen is an ongoing effort shaped by the review and implementation of demand gen metrics. Crunch the numbers through demand generation metrics and you’ll have concrete proof that your demand generation strategy is working or requires modification.
Keep Tabs on the Customer Acquisition Cost
Experienced business professionals and marketers highlight the importance of customer acquisition cost. The amount of money your business spends to acquire customers is just as important as your level of revenue. If your video marketing is egregiously expensive, the revenue it generates through acquisition will be largely offset or possibly completely nullified. The challenge lies in turning viewers into paying customers who prove loyal to the business across time.
Monitor your CPA, short for customer acquisition cost, across each content marketing push and you’ll get a better sense of the return on your marketing investment. Tinker with your marketing budget along with your marketing strategy until you achieve a reasonable CPA, keep tabs on it across posterity and you’ll sleep soundly knowing this important metric is not gradually moving upward.
Sales Cycle Length
If you are like most business owners and managers, you aren’t sure how long it takes to convert a lead into a paying customer. Be aware of the average sales cycle length and monitor it moving forward. This demand gen metric is calculated by comparing sales alterations from the period prior to your content marketing push with the period of time during which the marketing campaign runs and also the period thereafter.
Each individual business or marketer defines the specific parameters of sales cycle length for marketing campaigns. Meet with a content marketing specialist for guidance and you’ll find defining the optimal sales cycle length for your unique business is that much easier.
Average Sale Amount
The average size of a sale is the average value of customers brought into the fold as a result of a content marketing initiative. The aggregate amount of revenue earned in a specific period of time divided by the total number of sales closed in that period of time equal the average sale amount.
The average sale is an important metric as it provides a better idea of the revenue created through your demand gen strategies. Center your focus on connecting with and retaining the business of the optimal prospects thereafter and it won’t take long for revenue to jump.
Prospective Customer Visits
Gauging the success of demand gen requires ongoing analysis of customer interest. In particular, visits to landing pages, social media pages and brick-and-mortar buildings are especially important. Ignore these online and offline visits and your business won’t be able to accurately gauge the success of its demand generation marketing campaign.
Track your online and offline customer visits before, during and after your demand generation campaign to understand the real impact of your marketing campaign. Make the appropriate adjustments moving forward, reanalyze the ensuing visit totals and you’ll have the information you need to improve your marketing campaigns across each channel.
Continue to Focus on KPIs Across Ensuing Campaigns
The moral of this story is you’ll never know if your demand gen strategy is working unless you pay close attention to the key performance indicators (KPIs) detailed above. Gauging the success or failure of a marketing campaign proves that much easier after you establish target benchmarks for success. Hone in on specific KPIs, set goals to strive toward and these quantifiable components will propel your company to new heights.