In this era of marketing accountability, industrial marketers need an effective framework to manage and measure their engagement opportunities. You can’t measure everything—and you don’t want to measure everything. You want to focus on specific measurements providing valuable insight, which in turn can help you make decisions to improve the performance of your marketing program.
According to Forrester Research, the hallmark of top marketing performers is their ability to generate marketing leads at the right velocity, volume, and value. These three metrics are key indicators of funnel health—and a healthy funnel generally means healthy revenue.
- Volume is the count of engagement opportunities or deals delivered by a marketing program.
- Value is how much an engagement opportunity is worth in terms of dollar value.
- Velocity is the speed at which an engagement opportunity converts to a sale.
What marketers must determine is how much weight and priority to give to each of the three V’s in order to optimize your marketing efforts and maximize your return. The answer is different for every company, based on your marketing goals, the makeup of your sales force and the nature of your customers’ buying behavior.
The dream world of every marketer is that the volume and value of engagement opportunities is high and the velocity of conversion is lightning speed. However, we all work in the real world, not the dream world. Therefore you must put these three V’s in perspective, understand how they align with your goals and use them to help make marketing decisions.
Volume, value and velocity intelligence can also help you segment engagement opportunities. For example, if a marketing program produces a high volume of opportunities, chances are many of those opportunities are not yet sales ready. They should remain with marketing in a lead nurturing program until more qualified. It might make sense to assign high-value opportunities to a salesperson for one-on-one cultivation and personal attention. Handle high-velocity opportunities in whatever manner will close the sale quickly.
Volume requires ironclad processes
Volume is historically the metric that gets the most attention, deservedly or not. What sales team doesn’t want more engagement opportunities? Some marketing programs are designed to maximize the volume of engagement opportunities. The upside of this approach is that you have more potential customers to convert and more of your target audience exposed to your message, which helps increase brand awareness.
On the other hand, the greater the volume of engagement opportunities, the more you need sound lead management processes. You must be able to separate real prospects from tire-kickers, prevent good opportunities from slipping through the cracks and avoid inundating your sales team with unqualified prospects who will never convert.
Value can trump volume
A highly targeted or specialized marketing program may not deliver a high volume of engagement opportunities. It can still be a strong program because the engagement opportunities generated should have a higher conversion rate and produce a higher amount of sales.
If your company’s objective is to close bigger deals or sell highly customized products or services, you’re likely looking at implementing a program that delivers fewer, but highly motivated prospects. You’re looking at quality over quantity.
Velocity offers intelligence
Velocity—the speed at which a prospect converts to a sale—can be considered independently or in relation to volume and value. Velocity is often directly related to your customers’ buy cycle and the nature of what you are selling. A long, complex purchasing process involving multiple decision makers and a significant investment may not have much in way of velocity. But if you’re selling parts or components that the market considers a commodity, you should expect high velocity.
No matter what you are selling, if you have a hot prospect motivated to buy, treat them as a high-velocity engagement opportunity. By tracking the velocity of deals, you can gain valuable intelligence on the length of your sales cycle and how well your marketing and sales processes are performing.
If this article was helpful to you, please spread the word by using the share buttons below.
How do you manage the 3V’s of lead management? What tips or strategies would you pass along to your peers in industrial marketing? Share your thoughts in the comments section below.