Ed. 13 KPIs
Edition 13: November 22, 2023
Demand creation and demand capture are two separate activities require separate metrics to measure their success.
Demand creation is about creating demand for your product to people who were not aware that you existed. Demand capture focuses on targeted activities to convert people who are already looking for a similar product or service.
Let’s look at how to measure them properly:
Demand Creation KPIs
1. Prospecting Traffic: In the world of demand creation, driving new traffic to your website or landing pages is the name of the game. But it's not just about quantity; quality matters, too. Are you attracting the right audience—people genuinely interested in your product or service? However, high traffic doesn’t automatically translate into success.
2. Key Engagements: Engagement is another crucial demand creation metric. Are your prospects engaging with your content, generating events? Tracking these interactions helps gauge whether you’re getting the right kind of traffic and prospecting your ideal leads.
3. Cost-Per-Visit: How much are you spending to attract each visitor to your site? A lower cost-per-visit indicates strong demand creation efforts and relevant content for the audience.
Demand Capture KPIs
In demand capture, the focus here is converting people who are interested into actual leads. Metrics like cost per result, pipeline conversion rates and lifetime value are important here. The question now is: are you effectively turning intent into revenue?
1. Cost per result: It’s an easy one. It measures how much you're spending in relation to the number of conversions or leads you're getting.
2. Pipeline Conversion Rates: The percentage of leads progressing through your sales pipeline is a critical demand capture metric. A high conversion rate indicates that your sales and marketing efforts are aligned and your leads smoothly transition from one stage to the next.
3. Lifetime Value (LTV): LTV is the total revenue a business can expect from a single customer throughout their relationship with the company. It's calculated by considering the average purchase value, frequency of purchase, and customer lifespan.
The Danger of Mixing Metrics
It's a common B2B marketing pitfall to apply demand creation metrics to demand capture activities, and vice versa. Why is this a recipe for disaster?
It’s a mistake to expect leads from high volume demand creation campaigns. As well as you should expect higher CPC and CPV from demand capture campaigns but it also leads to higer revenue.
Judging your demand creation based on demand capture metrics can lead to prematurely dismissing effectiveness of the campaign.
CEO, Half Past Nine