Marketing sourced pipeline is one of the most commonly reported performance metrics for b-to-b marketing (70 percent of organizations in our benchmark consistently report on it). Modern b-to-b marketers point to this metric with pride, because it serves as a sign of accountability and proclaims, “We, as marketers, take our role in our company’s revenue creation process seriously!”
But some companies are relying too heavily on marketing sourced pipeline in their measurement system. If you’re placing a singular focus on sourced pipeline, you’re likely doing harm, as focusing too narrowly in an attempt to demonstrate real accountability can encourage the company and leadership to lose sight of how marketing is really expected to create value.
Some b-to-b marketing organizations source more than 50 percent of their company’s pipeline. If you’re doing that, congratulations! But most b-to-b marketing organizations do not, cannot, will not and should not source such a large portion of their company’s pipeline. Companies marketing to a defined universe of potential buyers or those with a focus on strategic accounts, a well-established client base, or a focus on upsell revenues are examples of companies where marketing sourced pipeline numbers will be lower. In these situations, these numbers can fall between 5 percent and 20 percent of the overall pipeline number. When this is the case, the role of marketing becomes different, and measurement should be different, too.
If marketing intends to demonstrate accountability, you’ll need to show performance against what marketing invests in. To get your arms around this, look at where marketing program dollars are being spent. If your organization spends significantly on sales enablement, pipeline acceleration or renewal efforts, measuring marketing sourced pipeline is an incomplete way to demonstrate achievement.
Instead, look at big areas of investment and ask what they’re expected to achieve. Commonly, marketing is expected to help sales close pipeline faster, succeed in more deal cycles, and drive client relationships and revenue. But sales has a role in this, too. And some marketing leaders – cautious about asserting too much credit for metrics they don’t own singularly – retreat into sourcing metrics. That’s a mistake – it leaves marketing investment uncovered by metrics that can show marketing impact.
Demonstrating the impact of marketing when performance is the result of cross-functional efforts requires three elements:
The latter type of metric is commonly referred to as measuring marketing influence. Organizations new to measuring marketing influence typically begin by measuring what portion of pipeline marketing has interacted with. The number of companies doing this has been trending up in recent years (up 65 percent since 2013), but only 48 percent of b-to-b marketing organizations regularly measure marketing influenced pipeline. The other 52 percent of organizations likely have a gap in their measurement approach and the way they prove marketing’s value. And when value isn’t proven, marketing resources understandably come under fire.
The good news is that even if your company isn’t incorporating influence into its measurement system, it’s not too late to start.
Ross Graber is a Senior Research Director of Marketing Operations Strategies at SiriusDecisions. He brings over 15 years of b-to-b marketing experience with focus spanning marketing measurement, demonstrating ROI, data management, process development, marketing technology, customer marketing and sales enablement. Follow Ross on Twitter @rossgraber.