In a previous post, we took a look at five key metrics to gauge your list’s performance and effectiveness. But we left out one crucial KPI that you should always be keeping track of: the ROI that your list generates. As we’ll see below, measuring exactly how much return a Custom Targeted Database brings to the table can become a little challenging. That’s why we’re setting aside this entire entry to help you get started with this critical marketing yardstick.
It’s typically hard to correctly determine the ROI of most custom target lists since they’re mostly used for top-of-funnel activities. This means that, by the time a lead becomes a customer, the touch points associated with the contact list that contributed to the sale are often difficult to trace since they took place at earlier stages in the process.
To get around this, the following tips can help you reliably measure how much revenue your custom targeted database helped generate:
- Know exactly where contacts come from.
In order to accurately gauge ROI, you need to find out where every contact that becomes part of your list originated from. Did a lead come from organic sources? Which paid source did a particular database record pass through before entering your funnel?
For your custom targeted database, this means having separate fields that report where and how you got the contact information.
- Refine your sales funnel stages.
There’s a surprising statistic from MarketingSherpa being thrown around that claims 68% of marketers haven’t yet identified their sales funnel. If you happen to be part of this group, you need to define and refine the stages in your sales funnel right now.
What are the steps a prospect goes through before being deemed sales-ready? What actions constitute a conversion in each of these steps?
- Track and score leads throughout your funnel.
Once you’ve established the precise steps that a prospect has to go through in order to turn into an opportunity, you now need to assign points that indicate how sales-qualified that particular lead is.
This is called lead scoring and is a crucial component of accurately measuring marketing ROI. Points are assigned based on the lead’s attributes (demographic and firmographic details) and their actions (interest and intent).
- Match closed deals with past touch points.
Now that you’ve got contact source information and lead scores recorded in your custom targeted database, it’s time to take a look at the data for deal closes. These closes should be tied back to the series of touch points that preceded the deal.
Marketingprofs says there are four categories of closes based on source and nurture history. It’s important that you identify the right classification for a particular deal, so that credit and attribution can be correctly given.
You can now start reliably measuring the ROI of custom target lists with these four tips in mind. The main idea is that your custom targeted database does contribute to the revenues your marketing and sales processes generate, provided that you’re using it correctly in your campaigns.