There are several metrics within the B2B market that you can measure, analyze, and compare. If you don’t want to get lost in the sea of numbers and graphics, you have to know where and what to look for. Knowing which metrics to prioritize can help refine your approach and increase the likelihood of converting customers and driving growth.
With that in mind, here are some metrics we recommend tracking in order to make informed business decisions.
B2B e-commerce metrics
1. B2B lead-to-close conversion rate (CVR).
Conversion rate optimization (CRO) is the process of improving the shopping experience in order to increase a specific KPI – usually sales. This is the best value for seeing how successful your marketing tactics are as it measures the percentage of website visitors that turn into buyers.
A healthy conversion rate means you have a very dedicated customer base and this is a sign of growth and success. If it’s low, check the user-trip mapping to see where you’re losing site visitors.
Since B2B sales cycles often take longer than B2C sales, calculating your conversion rates and evaluating the performance of marketing campaigns is even more important. This is why it is important to keep track of these numbers year-round, not monthly.
2. B2B Initial Customer Acquisition Cost (CAC).
Acquisition metrics focus on how effective your website and other marketing efforts are in getting visitors to visit your website. Acquisition metrics are more than just general traffic volume and can help you find out who is visiting and where they are from – so you can better contextualize traffic numbers.
Customer Acquisition Cost (CAC) measures how much your company is spending to get a new customer by looking at your marketing spend and how it is broken down per customer. This is a great way to determine the overall ROI of your brand on marketing and advertising. Active awareness of your CAC can help you prioritize campaigns within your budget.
For some B2B companies, it’s the only metric that shows how good (or bad) their performance and efficiency are. For others, it’s a clear indicator that something wasn’t done right. But these numbers can help you identify where to make some changes (program, campaign, initiative, channel, approach), clearly highlighting the positive and negative effects of those changes.
Marketing percentage of customer acquisition costs
This one is a mouthful and is a bit technical. However, it’s a very powerful metric that shows how well your marketing team is performing and spending.
Essentially, the marketing percentage of your CAC indicates how much money the marketing is spending and how many new customers it is generating over a period of time. It gives you some insight into how your marketing program is working and can be used to make better sales and marketing decisions.
The “Marketing Original Customers” metric gives you the opportunity to get a clear view of how much your customer share was gained through marketing. You may have invested in tools and techniques, so expect your audience to grow accordingly.
Understanding this metric and how it is calculated can help you determine how many people have heard about your company, and know exactly what to do next and how to improve it. This metric plays a role in helping your company grow and acquire new businesses.
3. B2B e-commerce churn rate.
Churn rate is a brutally honest metric that relates to whether or not you have a profitable business. Churn rate is a business metric that calculates the number of customers who have left a product over a period of time, divided by the total number of customers remaining.
That way, you can determine at what stage you are losing your customers and from there develop a strategy to improve how they interact with your product or service. Knowing the churn rate is important as it can be much easier and cheaper to have more returning customers than trying to attract new customers.
Key takeaways on B2B ecommerce metrics
If you want to improve your approach to sales, you need to track the right metrics. It’s impossible to make an effective, informed decision without having the right metrics to guide you.
By keeping track of the above metrics, you can identify areas where you need to make changes and improve your overall approach to sales. Depending on your business and needs, there are several other metrics that can be measured, calculated, compared, and modified to improve your business.
For more information on B2B e-commerce, Imagination Media has created an informative e-book for B2B retailers. You will learn more about metrics and the trends that influence them.