Measurement

Framework
Metrics & KPIs

Difference between Metrics & KPIs

Metrics
A measurement system that quantifies a
trend.
Metrics are used to diagnose causes,
explain results & project future events &
likely outcomes. Used as diagnostic tools,
especially when viewed as trends or with
other numbers to discern relationships.
For example, a metric for the conversion
rate of prospects who land on a form on a
web page can be used to determine who
finds the asset behind the form valuable
enough to complete. The number who
abandon the form may show that the
form needs to be improved. Looking at
the trend over time for this number
provides even more insight

KPIs

Key performance indicators are

measurements that indicate the
health of the business & are centred
around aggregate growth, costs,
market share & profit.
KPIs combine the effects of many
activities & areas of marketing
investment into one business
outcome; they typically are the focal
point of b2b marketing dashboards.
For example, reporting the
percentage of the sales pipeline
sourced by marketing is a KPI that
combines the effects of multiple
programs into a single number.

From the Sirius Decisions Metrics Spectrum

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Metrics Spectrum
Categorization of b-to-b metrics into 2 primary dimensions (Metric Class & Metric Type) to help guide selection & validation.

Metric Class

Activity > Output > Impact

Describes the level of each metric (tactical to strategic)

Activity Metrics
Most tactical metric, quantify what was done
Dont measure what occurred as a result
Indicate whether plans are being executed & specific actions have been completed
E.g 10 emails sent in the month, Exhibited at 3 trade shows, 15 pieces of content created

Output Metrics
Activities produce outcomes e.g emails are sent with the expectation theyll produce clickthroughs & prospects
Some outputs are the result of a single activity e.g. clickthroughs from an email, other output metrics combine the results
of multiple activities e.g MQLs created per month
It is neither required nor reasonable to require that each output must be directly or wholly tied to specific activities

Impact Metrics
Most strategic class used for executive level dashboards
Really KPIs
Dont describe tactical effectiveness but instead show progress against business objectives e.g. revenue growth,
profitability.
Marketing impact metrics include managed channel sales, pipeline sourced by marketing
They
result
from
a complex series of actions taken across the organization
From the Sirius
Decisions
Metrics
Spectrum
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& are therefore highly summarized metrics

Metrics Spectrum
Categorization of b-to-b metrics into 2 primary dimensions (Metric Class & Metric Type) to help guide selection & validation.

Metric Class
Operational & Readiness Metrics
Measure internally focused activities & outcomes that prepare the company to achieve business
results
They reflect activities such as training, tech deployment, database health & market intelligence
E.g an increase in the percentage of the database opted in can be associated with an increase in
MQL volumes or sales training improvements can be associated with improvements in pipeline
velocity or Diamond training can be associated with improved email targeting which can be
associated with improved clickthrough rates.
In isolation they have limited value
But in the proper context they can provide valuable insight into how an organizations
operational foundations play out in the performance and efficiency of market-facing activities.
Metrics can include activities as well as outputs & can describe magnitude & efficiency
E.g a training initiative in an activity metric of 5 marketing training courses developed
(magnitude) at a cost of 5k to develop each course (efficiency). Output metrics might be 100
marketers becoming certified (magnitude) at a cost per certification of 250
From the Sirius Decisions Metrics Spectrum
S:\MKT3\Analytics\Metrics & KPIs\Aligned Measurement Framework\TheSiriusDecisionsMetricsSpectrum

Metrics Spectrum
Categorization of b-to-b metrics into 2 primary dimensions (Metric Class & Metric Type) to help guide selection & validation.

Metric Type

Magnitude & Efficiency Metrics

Categorizes metrics of all classes based on whether they describe magnitude or

efficiency
Magnitude Metrics
Expressed as quantities or percentages
Quantity metrics include 10 emails sent, 10k of budget spent, 100 MQLs generated, 50 opportunities lost,
1M of MC sales produced
Percentage examples include the email clickthrough rate, distribution of MQLs across regions, the
conversion rates within the funnel, the portion of budget spent

Efficiency Metrics
Compare measures of performance to the resources required to achieve that performance
Resources may be explicitly stated or implicitly referenced and may include monetary costs, time spent or
other inputs
Often stated as averages
Examples include cost per email, cost per inquiry, cost per MQL, average funnel stage duration
More strategic examples include investment to pipeline ratio, cost per deal, cost of customer acquisition
Can be used to compare the results of various resource investments or to gauge how well resources are
beingMetrics
usedSpectrum
From the Sirius Decisions
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Metrics Spectrum
Showing Sample Metrics to be added to
Metric Type
Efficiency
Metric Class
Magnitude
(Magnitude/Resource)
Managed Channel Sales
Investment to managed channel
% of sales from
pipeline ratio
managed channels
Investment to
Impact: What effect is seen on
Pipeline % sourced from
managed channel revenue ratio
business goals?
Marketing
Clickthrough %
# Prospects
# MQLs
#
Responders
# Content
Downloads
Funnel
Cost per prospect
Conversion Rates
Cost per email
# Media mentions
#
Average
Output: What resulted from
Clicks
# Follows
funnel stage duration
actions taken?
# Retweets
Average pipeline stage duration
# Campaigns launched
# Whitepapers
created
#
Emails sent
Cost of content production
# People added to Content investment to usage
Activity: What actions were taken? nurture campaigns
ratio
From the Sirius Decisions Metrics Spectrum
Database size
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Importance of an Aligned Measurement Framework

The importance of b2b marketing performance measurement & reporting is
based on its capacity to describe how value is being created within the company
Effective reporting allows people at all levels of the dept/company to;
1.

Track how marketing efforts to create value are progressing

2.

Identify areas that are not developing as planned

3.

Adjust actions taken in response

Measurement should be used to examine many aspects of marketing

performance, from the most highly summarized to the most granular
A measurement framework will allow us to connect (directly or indirectly) the
outputs & impacts created with the actions taken to achieve those results
As measurement plans are developed we need to use the framework to match
metrics to requirements and reporting deliverables in order to develop a clear
view of marketing performance
From the Sirius Decisions Aligned Measurement Framework
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TheSiriusDecisionsAlignedMeasurementFramework

From the Sirius Decisions Aligned Measurement Framework

S:\MKT3\Analytics\Metrics & KPIs\Aligned Measurement Framework\

From the Sirius Decisions Aligned Measurement Framework

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From the Sirius Decisions Aligned Measurement Framework

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Suggestions for new / revised

Impact KPIs for CMO dashboard

Marketing KPIs
Marketing Sourced Pipeline
Definition
The Percentage of the total pipeline that marketing has uniquely created SiriusDecisions
An opportunity should be considered sourced by marketing if it meets one of two criteria;
1. It was not previously in the pipeline and got there via a MQL that converted to a SQL or;
2. It was a dead SQL that came back to life based on marketing activity (or a new opportunity was
created from a contact who was an MQL)
. To calculate the percentage;
. Input A
The pound value of 12 months of cumulative sales pipeline data on the first day, quarter or other
time period being reported on. Only include opportunities with an associated pound value & a
timeline to close (opportunity close date populated) with a create date inside of the 12-month period
being measured.
. Input B
The pound value of 12 months of cumulative sales pipeline data only for opportunities that were
sourced by marketing. Only including opportunities that match the same criteria as in Input A.
. The percentage of marketing sourced pipeline is derived by dividing the total pound value of Input B
by Input A

Marketing KPIs
Marketing Influenced Pipeline
Definition
The Percentage of the total pipeline that marketing has touched during a set time
period SiriusDecisions
An opportunity should be considered influenced by marketing if it meets one of two criteria;
1. As per marketing sourced pipeline & / or;
2. It meets the definition of a managed channel opportunity
. To calculate the percentage;
. Input A
The pound value of 12 months of cumulative sales pipeline data on the first day, quarter or other
time period being reported on. Only include opportunities with an associated pound value & a
timeline to close (opportunity close date populated) with a create date inside of the 12-month period
being measured.
. Input B
The pound value of 12 months of cumulative sales pipeline data for opportunities (regardless of
whether they were sourced by marketing or sales) that were influenced, or touched, by marketing.
Only including opportunities that match the same criteria as in Input A.
. The percentage of marketing influenced pipeline is derived by dividing the total pound value of Input
B by Input A

Marketing KPIs
Investment-to-Influence Ratio
Definition
The amount of sales pipeline touched/influenced for every 1 invested in all
marketing activities designed to influence opportunities in the sales pipeline.
SiriusDecisions
Shows marketings impact & efficiency at building the pipeline
To calculate the ratio;
Input A
The pound value of 12 months of cumulative sales pipeline data for opportunities (regardless of
whether they were sourced by marketing or sales) that were influenced, or touched, by marketing.
Only include opportunities with an associated pound value & a timeline to close (opportunity close
date populated) with a create date inside of the 12-month period being measured.
Input B
The pound value of 12 months of investment in brand building, demand creation, sales enablement
& appropriated reputation programs.
Ratio calculation shown on slide xx
Investment is variable marketing investment only e.g. investment allocated to activities/assets
whose goal is to create awareness, build the brand, generate demand & sales enablement. Doesnt
include fixed personnel spend or spend on marketing infrastructure/tech.

Marketing KPIs
Investment-to-Revenue (MC) Ratio
Definition
The amount of revenue touched/influenced for every 1 invested in all
marketing activities. SiriusDecisions
Shows marketings impact & efficiency at generating sales
To calculate the ratio;
Input A
The pound value of 12 months of cumulative closed revenue for opportunities
touched/influenced by marketing (MC sales).
Input B
The pound value of 12 months of investment in brand building, demand creation, sales
enablement & appropriated reputation programs.
Ratio calculation shown on final slide
Investment is variable marketing investment only e.g. investment allocated to
activities/assets whose goal is to create awareness, build the brand, generate demand &
sales enablement. Doesnt include fixed personnel spend or spend on marketing
infrastructure/tech.

Marketing KPIs
Ratio Calculation
Input
B

1
x

Input
A

.Example
1.
2.
3.
4.
5.

Use 1,500,000 for A, 500,000 for B

Cross multiply (1,500,000 x 1, 500,000 x x)
1,500,000 = 500,000x
Solve for x
X = 3 in pipeline for every pound invested in marketing