We’ve been hearing it for some time now—marketers need to earn a seat at the revenue table. But how do you go about doing that? It all comes down to proving—and improving—marketing’s contribution to the bottom line using metrics that matter.
For too long, marketing has been seen as more of a cost center and has traditionally struggled to quantify return on their marketing spend. Why? They have been focused only on vanity metrics like Facebook Likes and Twitter Followers. While those are to worthwhile to track for many things, they don’t measure the impact of revenue on profitability. In order for these metrics to be truly effective , they need to be combined with other analytics that show true contribution to the business.
To elevate your status and value in the organization, you need to measure Key Performance Indicators (KPIs). These KPIs demonstrate how marketing impacts the bottom line and provide a benchmark so that you can continually evolve.
Three Types of KPIs
When it comes to metrics that matter, you should look at the following types of KPIs:
- Tactical: Typically looks at behaviors such as opens, clicks, visits, downloads and submissions. Tactical KPIs are best for looking at how channels are performing.
- Strategic: Typically generated by looking at the results of tactical reporting—strategic reporting looks at things like revenue. Strategic KPIs empower executives in their decision-making efforts.
- Operational: Typically contains indicators of cross-functional alignment. Operational KPIs get everyone in sync and examine organizational silos.
But how do you measure these three KPIs? Download our new ebook Speaking the Language of Business Metrics: the 3 Types of KPIs for Success, and learn how to create reports for each of the indicated KPIs, so you can earn your seat at the revenue table.