What are the three metrics every b2b marketing organization must track?

1) Efficiency (cost per lead),
2) Effectiveness (win or conversion rate), and
3) Retention (repeat customers/total customers).

Each would be measured ideally by source and market segment.

The last is important because we all know that acquiring new customer is 8-10 times more expensive than retaining an existing one.

Once known we can move on to longer-term metrics like brand awareness, brand preference.

3 Metrics which are vital but many people aren't tracking...

1: Interaction
The greatest feature of the internet is its interactivity. No longer do we broadcast messages to customers and prospects - it is a two way conversation.

Online is also the main way in which B2B buyers discover new partners/suppliers, check them out and then build a relationship.

This relationship is measured by prospect participation. If you broadcast a message there is no sign of engagement. If it is opened, you have a glimmer of hope. If they respond, that shows much more engagment with you.

You can then build that relationship. If they open multiple items, that shows more lasting interest in what you have to say. If they put forward their ideas or tell you more about them, that shows they are matching needs. If they respond on webinars, participate in workshops or create questions about you or your product on social networks, it shows they are actively evaluating you. Eventually you reach a stage where they ask you key questions (helping you set the playing field for their decision), ask how your product would help them do this or ask for a meeting. Then you've built a relationship.

So design your engagement programmes with this two-way conversation in mind. You also need to track engagement against four key levels - interest, thinking, deciding and buying. And forget any metric to do with Leads to an Appointment (MQL, SAL etc.) - sales visits now only happen after the buying decision is made.

2: Customer Lifetime Value
One of the hangovers from mass marketing is a "broadcast to everyone regardless" mentality. MA has encouraged the trend as the cost is now minimal. But this wastes people resources and may steer the company down unprofitable paths - important in these days when marketers are pretending to be in charge of the company's revenue generation.
You need to have a measure of lifetime value for a prospect - not just for the initial sale, but for all subsequent upgrades, service revenue, training, consultancy, cross-selling opportunities etc.
Only then will you know whether it is worth going the extra mile for a certain company. You will start to develop key accounts which involve high level staff, leaving others to automated processes. You will define a size and type of company you work with and focus your marketing efforts, with much less wastage.

3: Marketing Value
You must also look at the influence of that customer. How many others will work with you because they are on board? This is particularly important in segmentation. If you get in with one of the top ten in any niche, then the other nine of the top ten will sit up and listen. Once you have one or two of the top ten, the hundred below them will also be easier to target, leveraging your existing relationship.
The same applies with consultants and influencers. If you help one introduce an idea to one of their clients and do a good job, there may be many more. If you say "you are too small for me to bother about", you lose the big fish they work with.
Splitting up your market into a top 100, top 1000, key influencers and the rest is thus vital to a focused marketing effort.

I am not sure what some of you mean, but I sure hope somebody out there is tracking sales, profits, and customer retention.

3 Metrics which are vital but many people aren't tracking...

1: Interaction
The greatest feature of the internet is its interactivity. No longer do we broadcast messages to customers and prospects - it is a two way conversation.

Online is also the main way in which B2B buyers discover new partners/suppliers, check them out and then build a relationship.

This relationship is measured by prospect participation. If you broadcast a message there is no sign of engagement. If it is opened, you have a glimmer of hope. If they respond, that shows much more engagment with you.

You can then build that relationship. If they open multiple items, that shows more lasting interest in what you have to say. If they put forward their ideas or tell you more about them, that shows they are matching needs. If they respond on webinars, participate in workshops or create questions about you or your product on social networks, it shows they are actively evaluating you. Eventually you reach a stage where they ask you key questions (helping you set the playing field for their decision), ask how your product would help them do this or ask for a meeting. Then you've built a relationship.

So design your engagement programmes with this two-way conversation in mind. You also need to track engagement against four key levels - interest, thinking, deciding and buying. And forget any metric to do with Leads to an Appointment (MQL, SAL etc.) - sales visits now only happen after the buying decision is made.

2: Customer Lifetime Value
One of the hangovers from mass marketing is a "broadcast to everyone regardless" mentality. MA has encouraged the trend as the cost is now minimal. But this wastes people resources and may steer the company down unprofitable paths - important in these days when marketers are pretending to be in charge of the company's revenue generation.
You need to have a measure of lifetime value for a prospect - not just for the initial sale, but for all subsequent upgrades, service revenue, training, consultancy, cross-selling opportunities etc.
Only then will you know whether it is worth going the extra mile for a certain company. You will start to develop key accounts which involve high level staff, leaving others to automated processes. You will define a size and type of company you work with and focus your marketing efforts, with much less wastage.

3: Marketing Value
You must also look at the influence of that customer. How many others will work with you because they are on board? This is particularly important in segmentation. If you get in with one of the top ten in any niche, then the other nine of the top ten will sit up and listen. Once you have one or two of the top ten, the hundred below them will also be easier to target, leveraging your existing relationship.
The same applies with consultants and influencers. If you help one introduce an idea to one of their clients and do a good job, there may be many more. If you say "you are too small for me to bother about", you lose the big fish they work with.
Splitting up your market into a top 100, top 1000, key influencers and the rest is thus vital to a focused marketing effort.

Leads in the funnel, close ratio, and who brings the donuts when you close a deal!

Potential and Risk could be two of the factors. Due Diligence Rating (DDR) can help assess the potential and risks of B2B opportunities between strangers. For an example of DDR, see http://www.rdsug.com/diligence.php at RDS.

1. MARKET SHARE- (unit/revenue): where are you right now and is there room to grow. If you are capturing market with lower & lower prices then you will have to market your higher revenue items.
2. GROWTH RATE- (unit/revenue): are you installing more customers thus increasing your internal economies of scale.
3. LEAD/CLOSE RATIO: this helps you understand how many leads need to be in the pipeline in order to close a sale. This can be broken down by what stage is the lead in of the sales process.
Those are my 3 cents.

Let me link you to some whitepapers which will help you a lot in researching metrics.

http://www.siliconcloud.com/Definitive-Guide-to-Marketing-Metrics-Analytics-R...

http://www.siliconcloud.com/contact/