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It is important to have a clear picture of your campaigns goals and their performance. As a B2B healthcare marketer, by measuring B2B marketing metrics helps your campaigns win and makes you standout from the crowd. For B2B vendors in the health sectors it is often a struggle to define which prospects are going to convert from which channel? To avoid this confusion and to identify your strengths and weaknesses. It is crucial to measure indexes and KPIs so that you can make better decisions.
What are B2B marketing metrics?
Healthcare B2B marketing indexes are the numbers and key performance indicators (KPIs) that businesses use to track, analyze, and improve their marketing within the sector. These metrics help businesses figure out how well their campaigns are working, what their target audience interests, and how they can improve their strategies to reach and engage possible buyers.
Why is it Important to Measure Marketing Metrics?
The need of measuring healthcare marketing metrics is to improve the campaigns and also it offers you a clear strategy for your future campaigns. Here’s why:
1. Measuring the metrics can helps for making informed decision
2. By knowing which campaigns yields the best ROI, you can allocate the marketing spend
3. It offers insights of audience behaviors such as their preferences, needs, and pain points
4. It tracks several objectives, be it lead generation, conversion, or brand awareness
5. It helps to align marketing and sales teams for tangible sales outcomes
By tracking the metrics, you can easily engage with the relevant stakeholders and buyer personas who are very much interested in what you offer.
But, to achieve these results it is crucial to know, what are those indexes which are needed to measure to reap high ROI.
Top 5 Healthcare B2B Marketing Metrics to Measure
1. Lead Generation — Not Just for Sales Funnels:
The most crucial part of any business is to track the volume of leads. For B2B marketers, the lead generation process is very challenging. Just obtaining the queries from clicks and pushing it to the sales funnel can’t be considered. As the B2B sales cycle is very long and complex. It needs proper nurturing. The buyer needs to know what exactly your healthcare company offers.
Hence these metrics further fall into 2 categories:
Total Leads: Number of new leads generated within a specific timeframe.
Qualified Leads: Number of leads that fit certain criteria, suggesting a higher likelihood of conversion.
2. Conversion Rate — Leads In Rate:
Measures the percentage of leads or visitors that take a desired action, such as signing up for a newsletter, requesting a demo, or making a purchase.
Here’s why you should measure Conversion Rate:
1. It gauges the effectiveness of campaigns.
2. Directly impacts ROI and profitability.
3. Reveals the resonance of your value proposition.
4. Highlights areas of friction or barriers in the user journey.
3. Customer Acquisition Cost (CAC):
It calculates the average cost involved in acquiring a new customer, taking into account all marketing and sales expenses.
How Customer Acquisition Costs are Calculated?
Calculating the Customer Acquisition Costs involves several processes, the initial process is to find the time frame (month, quarter or year). This will help you get a clear estimation based on the period of given time.
The next step is to add your sales and advertising expenses of that particular period and divide the term by the total number of new customers acquired in that time. Here’s the formula:
CAC = ME + SE / New Customer Acquired
ME = Marketing Expenditure
SE = Sales Expenditure
This can be simplified as, suppose that your healthcare company invests $800K in marketing your products and services and $400K in sales, and you get 1000 new buyers. Then the Customer Acquisition Costs of your business would be 1.2K.
4. Customer Lifetime Value (CLTV):
It is an estimate of the total value (often in terms of revenue) that a business can expect from a single customer account over the length of their relationship.
How is it helpful?
The customer lifetime value (CLTV) is an important factor, because it offers a prospect-centric view of your sales and campaigns. It also boosts your businesses other features like:
Customer Acquisition
Client Retention
Upselling
Cross-selling, etc
The Customer Acquisition Cost (CAC) is considered to be lower than the Customer Lifetime Value (CLTV).
Customer Lifetime Value (CLTV) > Customer Acquisition Cost (CAC)
This implies that the revenue generated by a new prospect over the life of their subscriptions with your products and services must be greater than the cost to acquire them. If you tend to overlook this implementation, your healthcare business will struggle to generate long-term profits.
Engagement Rate:
The engagement rate can be calculated by the number of visitors engaged with your promotional mail by number of visits. Engagement rate is a crucial part of your advertising, as it contributes to lead nurturing, boosting lead scores and volumes.
Email Open and Click-Through Rates: Indicators of the effectiveness and engagement level of email campaigns.
1. The email open rate refers to the percentage of your promotional mail being opened from the total emails you sent. For example suppose you send 100 advertising mails to your targeted medical prospects and out of 100 only 57 people open your mail to read then your open rate will be 57%.
2. The Click-through rate indicates the number of people clicked on the mail, to the total of email you sent. For instance, you send 50 promotional messages to your targeted prospects and out of 50 only 23 of them click on your mail. Then your click-through rate will be 46%.
Content Engagement: Metrics such as page views, time spent on a page, download rates for resources like whitepapers, and participation in webinars or events.
Some other metrics are:
1. Sales Rate:
It refers to the percentage of prospects or leads that convert into paying customers or buyers. It is calculated by the number of successful sales to the total number of leads generated. For instance a pharma company generates 70 B2B leads out of which 25 prospects make deals then the sales rate would be around 35%.
Other indicators:
Sales Cycle Length: Duration it takes to close a sale from the first point of contact.
Lead-to-Close Rate: Percentage of leads that result in a closed sale.
2. Return on Investment (ROI):
ROI measures the profitability of a particular marketing campaign or strategy by comparing the net profit to the amount invested.
It is calculated by subtracting the initial cost of investment from the net profit and dividing by the initial investment. You can measure the ROI using the following formula:
ROI = (Net profit – initial investment / initial investment)
Conclusion:
To sum up, measuring your marketing metrics and KPIs are important factors for the success of your healthcare B2B campaigns. By knowing the data and analytics it is easier to make informed decisions. With the data of — lead generation, lead conversions, customer acquisition rate (CAC), customer lifetime value (CLTV), engagement rate, sales rate and ROI — gives you the necessary information that is required to iterate your future campaigns. Using these indexes you can improve and achieve success in your result-oriented campaigns.
If you want to successfully engage with your prospects and boost your sales rate through effective advertising strategies. All you need is a clean and verified database which supports multi-channel campaigns. FountMedia being one of the leading healthcare database firms in the United States, offers you a mailing list of health professionals, hospitals and much more. The list is segmented based on location, job titles, SIC/NAICS code etc. By using our lead lists you can reach the targeted addressable markets and boost your ROI.
