The B2B CMO metrics playbook
What metrics to track, how to act on them, and which to share with the board
It’s easy to feel paralyzed when it comes to B2B marketing metrics. Which should you track? What actions should you take based on them? And which should you share with the board?
Take a deep breath and get in a zen-like state, because here’s your metrics playbook and companion metrics matrix.
Decide which metrics to track
Track the metrics that are the most meaningful to your business. For example, in your demand funnel, map all the steps prospects can take, and then figure out what the breakpoints are. In this simple example, they're web traffic, free trial conversions, and closed business.
What if you noticed a big difference in the close rates of active trial users versus those who simply sign up? You might look at trial user actions by close rate, and find that anyone who takes more than, say, three actions closes at twice the rate of less active users. Upon learning that, you’d want to add the percent of trial users who take more than three actions as a metric. Why? Because it’s a swing factor — an indicator of likelihood to close.
Which overall metrics should you track? Well, that depends on your company’s stage, important initiatives, competitive pressures, and other considerations. I like to align my metrics to high-level goals — usually awareness, pipeline, and wins — and figure out what the swing factors are within each. For awareness, I might keep track of our “share of voice” in the news. For pipeline, I might calculate how many dollars of pipeline we generate for every campaign dollar we spend. And for wins, I might measure our close rate, competitive win rate, and sales cycle duration. Here’s my metrics matrix (say that ten times fast!).
Take action based on those metrics
An even more important reason to track the metrics that represent the important breakpoints in your business is that they inform what you should do next. In the example above, knowing that a trial user taking three actions is the swing factor for closing business means you’d do everything in your power to get trial users to that critical point. You’d need to run a bunch of experiments to figure out what prompts them to get there.
Some actions to consider include doubling down on a program, curtailing or reducing investment in a program, doing more analysis, conducting experiments, having a conversation, sounding an alarm, or waiting and seeing. Sometimes the best course of action is doing nothing, but that should be deliberate. I think it’s important to be intentional about every course of action — otherwise, why measure something in the first place?
Share the right metrics with the board
The metrics you share in your marketing update to the board need to tell a story, show continuity, and answer directors’ key questions.
Most board directors care about three basic questions:
- Will we hit our number this quarter?
- Will we hit our number next quarter (and beyond)?
- Is what we’re doing working?
Quick side-bar: Before you do anything (ANYTHING!), make sure you're 100% in alignment with your sales counterpart. That means having a shared model, agreed-upon bookings goals, and average selling price and conversion assumptions, as well as what portion of the pipeline each of you'll be on the hook for.
For question 1, share wins and winnable pipeline that’s set to close this quarter. Depending on how late in the quarter you are, show only the appropriate stage. And, for the love of God, don’t show separate sales and marketing graphs so board members have to flip back and forth and add up the numbers on a calculator! If you absolutely must, show sources in a call-out. Here’s a sketch.
For question 2, share two things: winnable pipeline for next quarter and beyond; and in-process leads, opportunities, and pipeline you’re generating this quarter for future quarters, versus the goal for each. Basically, you want to show what’s in the can and what’s reliably in process. Not sure what your goals are for each stage of your funnel? Model them out with this handy pipeline management process and pipeline template that calculates what you need at each stage in each quarter based on your assumed bookings, conversions, and conversion timing. Don’t forget to add a small detail here and there to answer the inevitable questions, such as “What portion are in your ICP?” or “Can you give an example or two?” Here’s a sketch for each.
For question 3, share an example or two of a campaign — perhaps your best and worst. You basically want to show the board that you’re being rigorous, optimizing on an ongoing basis, and not afraid to change what isn’t working. Here’s a sketch.
And because your board may ask the question, “How do you know what your goals are?,” make sure to have your framework ready (maybe in the exhibits) so it’s easy to explain. Map your funnel stages, and make sure board members understand that it’s not just about conversions, but also conversion timing. Here’s a sketch.
When presenting metrics to the board, less is more. I recommend only having a few metrics slides with large, easy-to-read charts or graphs (and maybe a few call-outs) that tell a story, make logical sense, and proactively answer questions. Beyond what you share in the deck, be prepared for random questions out of left field (I call this the “fat back pocket” in this checklist for how to present to the board).
