How we measure marketing ROI inside our growth organization

TL;DR → Marketing goal = $$$

As of writing this, I work for Tuxera, a growth company that builds software for self-driving cars and is based in Finland 🇫🇮, Northern Europe. My main job as the Head of Marketing is to lead their marketing strategy to support the fast growth in the coming years (i.e., keep above 30% YoY).

The Funnel

A sales funnel (also known as revenue funnel or sales process) refers to the buying process that companies lead customers through when purchasing products or services. A sales funnel is divided into several steps, which differ depending on the particular sales model. Source: http://bfy.tw/9ndk

  1. Make the offering unique and valuable through brand positioning
  2. Help the organization capture revenue from the offering’s value
Example of a simple sales funnel

What to Measure

Just having a funnel in place or paying thousands of dollars per month for a fancy CRM software won’t make your organization grow. The funnel provides you with a visualization of how your business is performing. And with performance comes the most important question: WHAT TO MEASURE?

Tuxera’s high-level sales & marketing funnel
  1. Lead: anyone who is interested in buying one of our products (can come from Visitor stage or directly from outbound — through business development).
  2. Customer: a company or a user who is already paying for one of our products.
  3. Ambassador: a very happy customer or user who is spreading the word of your brand on her own will.
  • Conversion rate: number of leads / number of visitors (%).
  • Velocity: speed at which each stage is converted to the next one (in days).
  • Value: size of the opportunity ($$$).

Conclusions

The ultimate goal of every business is to maximize the value for the shareholders. The ultimate goal of marketing is to help the organization maximize its revenue. To serve this purpose, the marketing function must understand and measure how much it supports the business goal (a.k.a. revenue growth).

If you don’t measure it, you can’t improve it.

Marketing is not abstract art or hipster magic. Marketing is a very business critical function inside every organization and, like any other business function, it is highly measurable. With the help of simple tools, such as the funnel I described above, and the right metrics, you can easily measure what’s the actual impact of your marketing strategy for your organization.

Chief Growth Officer @ Fidelix 🚀 Executive Board Advisor | Leadership | Strategic Marketing Management | Digital Transformation ➡️ www.claudiocamacho.com

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