Basics of Appropriate Marketing Automation Report Methods
Marketing automation allows for new ways of marketing and reporting. Following are three appropriate reporting methods that you can use to measure your results, evaluate how people move through your marketing stages, and track how effective your marketing is:
ROI reporting: Return on Investment (ROI) reporting tells you how much money your marketing campaign returned for each dollar spent. To use ROI reporting appropriately, use it only when money is spent at the start of a campaign and money is returned at the end. ROI reporting is usually a long-term report for lead sources.
For example, if you paid $100 to acquire a lead with a paid search campaign, your ROI reporting could last for months if it takes months for a lead to make a purchase.
Velocity reporting: Velocity reporting tells you the speed at which a lead moves through your funnel. This is a very important metric, with no way of being tracked without marketing automation. Using velocity reporting appropriately allows you to increase the speed at which a lead converts. That way, you can increase the number of leads in a given time period and close more leads sooner.
Closing more leads faster means having money in your bank sooner, which has more value than money in the bank later. This is especially true for software-as-a-service (SaaS)-based or recurring revenue businesses. Money in hand today is worth more than money in hand tomorrow.
Efficiency reporting: Efficiency reporting compares the number of leads generated to the number of leads lost as a percentage over time. For example, if you generate 100 leads today, and 50 leads convert to sales-ready leads while the rest are lost, your efficiency of leads is 50 percent.
Using efficiency reporting appropriately helps you understand whether you’re attracting the correct people as leads. Because good leads have a much higher efficiency than bad leads, your efficiency reporting helps by showing you whether you are wasting money attracting leads who never convert.