The need for measuring key performance indicators (KPIs) in B2B marketing should be obvious. What’s less clear is which metrics to track. Platforms offer hundreds of different KPIs, and your company likely has its own set of metrics. You need to make all these work together to create data-driven marketing that delivers maximum impact.
In this article, we’ll explore the key considerations you need to keep in mind. While this isn’t an exhaustive guide—that would require a book or more, and every company has unique needs—we’ll cover the essential best practices.
The difference between B2B and B2C marketing KPIs
B2B and B2C marketing KPIs differ significantly. While both usually aim to drive revenue in the longer or shorter term, the measurement approaches vary based on the target audience. Consumer marketing typically deals with larger data volumes and shorter purchase journeys, while business marketing focuses on longer lead and sales cycles.
Key differences in B2B marketing KPI selection include:
- longer sales cycles
- smaller customer base and data volume
- ability to analyze individual client data more deeply
- more complex and involved buying process
- longer timeframe for measuring financial impact
- coordination required across multiple company departments
These factors make B2B marketing KPIs and analysis more intricate than their B2C counterparts. It’s not just about data—you need a thorough understanding of all stakeholders. That’s what makes B2B marketing fascinating—the complexity.
Marketing and sales collaboration: two approaches
In a B2B environment, sales and marketing units work together as the revenue-generating spearhead of the company. This means their KPIs must align and overlap since both units work on the same sales pipeline.
Marketing traditionally focuses on generating marketing qualified leads (MQLs) and nurturing them into sales qualified leads (SQLs), with or without sales involvement. After this stage, the baton is usually passed to sales.
In modern organizations, neither sales nor marketing is limited to specific phases of the sales cycle. Instead, both teams remain active throughout—with marketing taking the lead early on and sales providing support, then sales taking the lead later while marketing plays a supporting role. This integrated approach leads to more effective revenue generation.
Regardless of which model you use, sales and marketing KPIs must align, serving as clear milestones along the customer journey.
Determining the B2B marketing KPIs from business goals
Is having 10 followers a lot or a little? Well, it depends—are they following you on social media or in a dark alley? Context matters.
Your B2B marketing KPIs should be derived from your organization’s goals. Companies typically focus on three main categories: growth, efficiency, and strategic vision. These categories guide your KPI development:
- Growth goals typically center on market share and revenue, which translate into KPIs focused on increasing customer acquisition and lifetime value.
- Efficiency goals focus on cost reduction and profit optimization. This doesn’t necessarily mean slower growth, but rather smarter growth. Your KPIs will track customer acquisition costs, retention rates, and lifetime value maximization.
- Strategic vision goals reflect where the company aims to position itself in the market long-term. The specific KPIs vary based on these strategic objectives.
The importance of this alignment is twofold:
- Marketing must drive the company toward its commercial goals, both short and long term.
- Your successes and failures only matter to management when they clearly connect to the company’s established goals.
Going 360: Lead generation, sales pipeline, and customer retention/success
The heaviest focus for marketing is often lead generation. However, profitable B2B marketing encompasses much more—it’s best to take a 360-degree approach. Marketing KPIs should cover both new and existing customer experiences and monetization, spanning the entire sales pipeline and customer retention.
Customer success plays a crucial role in retention. While the balance of effort between sales and marketing varies by company, consider this: if your goal is increasing revenue, why not target existing customers? They’re typically easier to convert than new prospects.
Most common B2B marketing KPIs and how to choose yours
Search any search engine or ask your favorite AI model, and you’ll find countless KPIs for B2B marketing. While these lists may be accurate, they won’t all be relevant to your specific needs. You’ll typically encounter high-tier KPIs (like ROI) and lower-tier KPIs (like clicks). Since high-tier KPIs are fairly consistent across most businesses, we’ll focus on those.
First, your KPIs must align with your business goals, which are typically monetary. When tracking metrics like clicks, you need to demonstrate how they ultimately impact sales.
Here are the most important KPIs, arranged from highest to lowest level, mainly focusing on the sales cycle:
- ROI (return on investment): Measures the profitability of marketing efforts by comparing costs to generated revenue
- SQL (sales qualified leads): Prospects that have been evaluated by the sales team and deemed ready for direct sales outreach
- MQL (marketing qualified leads): Leads that have shown interest and match ideal customer criteria but need further nurturing
- ICP or key account engagements: Measures how target accounts interact with your content and marketing activities
- ICP or key account reach: Tracks the percentage of ideal customer profile (ICP) accounts your marketing efforts have reached
Cost per acquisition is also a crucial factor to consider for each level.
These KPIs tell a story from bottom to top: We reach our ICP accounts, get them engaged, convert them to MQLs, nurture them to SQLs, and then measure the ROI of our entire initiative. While customer retention is important, it’s often overlooked by most marketing teams, so we’re focusing on the more commonly tracked metrics.
Also read:
Measuring B2B Marketing Results and ROI: Key Insights and Tips
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