In today’s data-driven world, marketing is no longer about just creativity; it’s about understanding performance and optimising efforts to drive measurable outcomes. For B2B companies, tracking the right marketing metrics is key to aligning marketing activities with broader business objectives, ensuring resources are invested wisely, and ultimately proving the ROI.
The right marketing metrics not only help your marketing team optimise their efforts, but they also provide the confidence needed to make informed decisions about future investments. According to a report from Hubspot, 73% of high-growth companies track the right marketing metrics, while 70% of low-growth companies don’t. This stark contrast highlights how critical it is to establish clear performance indicators.
A McKinsey report further supports this by stating that companies using data-driven marketing strategies are six times more likely to be profitable year-over-year than those who don’t. This underlines the importance of having accurate, actionable data to inform strategy.
The challenge is not just in collecting data but in knowing which metrics to focus on. In this article, we’ll explore the core marketing metrics that B2B teams need to track, why they are important, and how they can directly contribute to business growth.
- Customer acquisition cost (CAC)
CAC is one of the most fundamental metrics for any business, especially in B2B environments where sales cycles are often longer and more complex. This metric measures the total cost of acquiring a new customer, including all marketing expenses like ad spend, content creation, events, affiliate commissions, and sales team salary and commissions.
Why it matters:
CAC helps businesses determine how efficiently they’re spending on customer acquisition efforts. A high CAC may indicate inefficiencies or the need for better targeting, while a low CAC can indicate effective marketing strategies and cost-efficient sales processes. Tracking CAC ensures marketing teams stay aligned with profitability goals and avoid overspending on customer acquisition. CAC helps align sales and marketing efforts and is a valuable metric to prove efficiency through the sales and marketing funnel.
How it drives growth:
By monitoring CAC alongside customer lifetime value (CLV), teams can ensure they’re not spending more to acquire customers than those customers will bring in over time. An optimised CAC means more budget is available for growth initiatives, which directly impacts revenue. CAC should reduce over time, however if developing new markets or driving growth in segments that may have higher CLV you may see it initially increase.
- Customer lifetime value (CLV)
Customer lifetime value is a critical metric for understanding how much revenue a customer will generate throughout their relationship with your business. CLV is often calculated by multiplying average purchase value by purchase frequency, and then factoring in customer retention rates.
Why it matters:
CLV provides insight into the long-term value of customers, helping marketing teams focus on retaining high-value clients rather than just acquiring new ones. By comparing CLV with CAC, you can better assess the efficiency of your customer acquisition strategies and whether you're targeting the right kinds of customers.
How it drives growth:
If CLV is significantly higher than CAC, you’re building a sustainable and profitable customer base. This data helps you justify increased investment in retention strategies, such as loyalty programs or personalised campaigns, which can increase customer satisfaction, reduce churn, and ultimately drive more revenue over time.
- Lead conversion rate
The lead conversion rate tracks how effectively your marketing efforts are turning leads into paying customers. It's calculated by dividing the number of conversions (sales or customers) by the number of leads generated, then multiplying by 100.
Why it matters:
A high lead conversion rate indicates that your marketing and sales teams are aligned and that your messaging is resonating with the right prospects. Low conversion rates, however, suggest that there might be issues with lead quality, nurture processes, or the customer journey.
How it drives growth:
Optimising your lead conversion rate means marketing is effectively attracting qualified leads that are more likely to become customers, reducing wasted spend on low-quality leads. This not only increases revenue but also maximises the efficiency of marketing spend.
- Website traffic and engagement metrics
In the digital marketing landscape, website traffic is a leading indicator of interest, but it’s the engagement metrics—like time on site, bounce rate, and pages per session that show how well you’re capturing and retaining attention.
Why it matters:
These metrics give insight into the quality of traffic and how well your website is engaging visitors. High traffic but low engagement could indicate that your content or messaging isn’t resonating with the audience, or the site isn’t optimised for user experience.
How it drives growth:
Better engagement often leads to higher lead generation and conversion rates. For example, if a particular blog post or landing page is seeing higher engagement, marketing teams can optimise this content or replicate its success in other campaigns, driving more qualified traffic to the site and increasing the likelihood of conversions.
- Marketing ROI
Marketing ROI measures the overall return on investment for all marketing activities, calculated by dividing the net profit from marketing campaigns by the total cost of those campaigns.
Why it matters:
ROI is the ultimate metric that C-suite executives and stakeholders care about. It tells them whether their investment in marketing is yielding tangible financial results. Without tracking ROI, marketing efforts can quickly feel like a “black hole” where money is poured in but no clear returns are seen.
How it drives growth:
Tracking ROI allows businesses to assess the profitability of different marketing channels - be it digital ads, affiliate marketing, email campaigns, or events - and allocate budget to the most profitable ones. This continuous improvement cycle helps increase revenue while maximising the impact of every dollar spent.
- Churn rate
For B2B companies, especially those operating under subscription-based models, churn rate is a crucial metric. It tracks the percentage of customers who stop doing business with you during a specific period.
Why it matters:
Churn directly impacts revenue growth and the sustainability of your business. A high churn rate can signal that your product or service is not meeting customer expectations, or that your customer success strategies need improvement.
How it drives growth:
By identifying the causes of churn and addressing them (via product improvements, customer support enhancements, or better onboarding), you can improve customer retention, increase CLV, and reduce the need for aggressive customer acquisition strategies.
- Attribution metrics
Attribution metrics track how different marketing touchpoints contribute to conversions. This can include first-touch, last-touch, or multi-touch attribution models.
Why it matters:
In B2B, the customer journey often involves multiple touchpoints across various channels - email, social media, affiliate marketing, and events. Attribution models help marketers understand which channels and tactics are most effective at driving conversions, allowing for better decision-making around resource allocation.
How it drives growth:
Attribution data ensures that your marketing investments are being allocated efficiently across channels. For example, if affiliate marketing is driving more conversions than paid search ads, marketers can shift budget to maximise its effectiveness. This improves overall ROI and ensures the marketing strategy aligns with business goals.
The impact of proper metrics on business growth
For CEOs and business leaders, clear, measurable marketing metrics provide visibility into the performance of marketing initiatives. With this transparency, leaders can be more confident in dialling up investments in proven channels or campaigns, knowing the ROI is likely to follow.
In an increasingly competitive B2B landscape, tracking the right marketing metrics is not just a “nice to have” - it’s essential for driving sustainable growth. Metrics like CAC, CLV, lead conversion rates, and ROI give marketers the tools to refine strategies and justify investments.
If you want to increase the impact of your marketing efforts and ensure long-term success, start by focusing on these core metrics and make data-driven decisions that will propel your business forward.
Ready to turn your marketing metrics into meaningful growth? Download our free eBook, "The Power of B2B Marketing You Can’t Afford to Ignore," and discover actionable strategies to transform your marketing efforts into a powerful growth engine.