Many marketing teams fail to measure the return on their investments in audience development and sales-ready lead generation.
Then, they wonder why marketing often finds itself in a precarious budget position.
This is Growth Blocker #5 that Eric Rudolf and I identified in our conversation on the 10 most common blockers preventing tech businesses from scaling from $1M to $10M in revenue.
“No visibility into marketing performance is a big blocker for growth,” Eric explains. This is not confined to emerging companies; it extends to established enterprises, including those with substantial revenues, and he notes: “So emerging companies shouldn’t feel bad about this one. It happens all the way up the chain.”
“Our budgets and our people are the first ones to go when things get rough,” Eric points out. This underscores the urgent need for marketing teams to enhance their ability to demonstrate value.
There is often an inconsistency in defining metrics and Key Performance Indicators (KPIs). When marketing metrics fluctuate monthly, it leads to confusion at the executive level and breeds skepticism, with top-level executives questioning the logic behind the shifting focus.
I pointed out that once upon a time, the expression was that “only 50% of our marketing spend is effective – We just don’t know which 50%.” But that’s not true anymore. You can measure so much more now. Marketing teams need a disciplined approach, with an established set of agreed-upon KPIs and metrics. By adhering to a standardized reporting framework, marketing can cultivate transparency and accountability. Moreover, embracing a culture of iteration ensures continuous improvement, aligning with the notion of “committing to iteration” to drive measurable results.
Companies need a marketing dashboard where you set out six, eight, or even 10 key metrics that everyone agrees upon. By consistently measuring these metrics, you gain the ability to pinpoint what’s improving and what’s declining, allowing for clear insights into your marketing performance.
