B2B Product Managers vs. B2C Product Managers Or how do you discover where you can improve your product to reduce churn?. We define Discoveries as any time a PostHog user analyzes an insight, dashboard, recording, or correlation analysis report for 10 second or more. Any score above zero is technically good, but most sources put the industry average for B2B SaaS products somewhere around +30 to +40. It's useful to track how long it takes people to do specific actions, but broader session duration metrics tell you little and can lead you to optimize for the wrong behaviors. Hundreds of dashboard templates to help you start tracking performance. These key B2B metrics shed light on how well marketing is meeting its goals and providing value to the business . When choosing your product metrics, first remember the four qualities of good metrics we mentioned earlier: understandable, comparative, specific and actionable. If you're growing quickly but not retaining users well, you know you've got a problem. There are many software solutions that can set up CES surveys and measure them for you including Wootric and Retently. B2B Marketing KPIs: 23 Metrics to Track This is a great metric to show the value of your campaigns and to gauge whether or not they are not only creating leads, but the right leads., However, Nick Nelson of TopRank Marketing says: I prefer not to think in terms of MQL/SQL, as this distinction can be divisive. As Netflix is a video-streaming service, the ratio of daily active users (DAUs) to monthly active users (MAUs) is one of the most crucial metrics for the platform. In the example above; if the average number of support tickets per user is rising, bugs are up and support is slower, yet NPS is still improving, perhaps theres something else at play that has a stronger influence on customers. Popular metrics like churn rate and conversion rate inform product strategy and help various company stakeholders to understand a product's value. What is product experience? Examples and how to improve PX Net Promoter Score (NPS) because it's a ubiquitous, easy to understand metric you can benchmark against your industry. Know Your B2B Marketing Metrics: Measure Your Way to Success - Act-On It's not realistic to achieve all four in every metric you use, but three out of four is a good benchmark. In the 2020s, the reality of churn is becoming more complex. For example, some products are used every daythink Microsoft Office or Google Docs. The key is to determine what kinds of user activity signify that your users are finding value. For example, instead of looking at the NPS of all users, you could look at just the NPS of your most valuable accounts and see if everything still holds true. How to Choose the Right Product Marketing KPIs for B2B? - Innoventsoft Churn rate 4 essential B2B marketing metrics The 15 Customer Success Metrics That Actually Matter This is not news. 18 Sales KPIs: The Best Metrics for B2B Sales Teams [2021] PRO TIP: Track all your leads with ease by using our pre-built lead generation dashboard templates. The KPIs reported to senior management need to align with the business strategy and financial goals of the company. Adoption rate is a product health metric that tells you what percentage of total signups turned into active users in any given period. Driving Success with Product-Led Growth in SaaS Businesses, The RICE Feature Prioritization Framework: When and How to Use It, The Best B2B SaaS Metrics and KPIs to Drive Product Excellence, Mastering Product Roadmaps with a Free Google Sheets Template, Customer Lifetime Value (LTV) has fallen by 30% in the last 12 months, Talk to customers that recently churned to understand if theres something in common thats causing them to leave, Provide a retention offer when users try to cancel their subscription, Review any recent changes to your product pricing and plans, The average number of support tickets raised per user (% change), The average first response time by the support team (% change), The number of reported software bugs (% change). This would be a great example of a metric you should probably stop worrying about. Not all products are the same Imagine sitting at your desk, logging in to your analytics dashboard and seeing a new metric that takes you 5 minutes to decipher. Sales, marketing, and finance teams all have their list of KPIs. Average number of support tickets raised per user per month =Total number of support tickets raised in the past month/ Total number of users. Retention rate vs churn rate: Churn rate is the inverse of retention it's the proportion of customers who left during the measured period. To give some context, its been said that an annual B2B SaaS Churn rate of around 5-7% is acceptable. And, it reveals if youre relying too much on high-touch customer service (your salespeople or CEO having to fight tooth and nail for every close)., Donoghue continues: A lot of B2B businesses fall into the trap where, through lack of branding or market positioning, they spend way too long explaining their benefits to each new customer. If the number of Discoveries is growing, we know we're on the right path. Get practical strategies that drive consistent growth, Basics By tracking both MQLs and SQLs, your company can make the most of its data on leads and act accordingly, Walter says. This way we can get a full view of our marketing campaigns to determine what approaches are working or which ones need further tweaking., Stephen Taylor of WISER Systems agrees: Of all the metrics and KPIs that marketers can track here, the most reliable one for marketing attribution models is typically the conversion rate of those leads by leads generation source., This helps a) quantify many of the actual costs to acquire customers, and b) show more clearly what is and isnt working at the leads generation level.. So, a business that begins a month with 3,000 customers, acquires 150 new customers, and ends the month with 3,100 customers, would have retention rate of 98.3%. These metrics help analyze the topmost part of the marketing funnel and broadly indicate how many people are aware of your business and what portion of them are likely buyers of your product or service. If your annual churn rate (users or revenue) is markedly higher than 5-7%, then it may suggest your product is failing to address all of your users concerns and you may need to do some customer research to understand why. Start by adding these B2B KPIs to your watch list, and if you need a quick performance update set Databox Scorecards and receive automated updates on your KPIs every day, week or month through email, mobile push notification, and/or Slack. It's also sensitive to changes in the product, so we can see whether our users make more or fewer discoveries when we make a change. 10 B2B Marketing Metrics & KPIs to Measure and Improve - Cognism My company doesnt run on Facebook Likes or organic visitors It runs on sales and conversions., Kevin DArcy of ThinkFuel Marketing summarizes: At the end of the day, marketers have a responsibility to prove the effectiveness of their activities and take ownership of their budgets and goals., Corey Haines of Refactoring Growth argues that for SaaS and subscription-based businesses, recurring revenue is what makes the business sustainable and what every marketer should be ultimately striving to improve., All leads, subscribers, website visitors, and customer signups should back into how it affects MRR.. B2B Product Marketing Strategy: Insights and Best Practices - NextLeap Blog How many tickets are reps closing? This is a leading indicator of how well your messaging is resonating with folks that find you via search or other means, Bolander adds, hence why their team thinks the email sign-up conversion rate is a KPI that B2B marketers need to monitor. What Is B2B Marketing? Strategy, Tactics and Tips - NerdWallet The more your users are actively engaged with your product and seeing the value from it, the less likely they are to leave. user logged in) might look good on a pitch deck, but it counts for nothing if they're not doing anything. William Chin-Fook of Pickfu agrees: During the buying cycle if you end up having a lead drop off during the conversion funnel, that is counted as a loss. The "North Star" Metric. But oftentimes they struggle with capturing/tracking the ROI of these assets., Thus, I think every B2B marketer needs to track assisted conversions as a part of their key performance indicators. In this guide, experts from 42 B2B companies share the KPIs they track. A successful product marketing plan should be tailored to the needs of your target audience. This KPI is particularly relevant for B2B marketers over B2C marketers because their sales cycles tend to be longer and purchasing decisions tend to be more complex. Compete like you mean it. Comparative: Can you benchmark a metric against your industry, or compare internally using cohorts? Customer retention rate because it will alert you to problems if you have them, and it's highly comparable. All brand-oriented and revenue-oriented metrics are important, but it is necessary to differentiate between vanity metrics and actionable metrics. Looking upstream, if were not hitting our KPIs on qualified leads we know that we need to generate more traffic through more content and/or paid ads.. All products whether B2B or B2C can use AARM Method ( mentioned in Divide and conquer Book by Lewis C. Lin)interms of metrics definition, with an extra emphasis on Churn Rate ( part of . As a formula, you divide the total time that all users spend per month using your software by the total number of users., Average user monthly session duration =Total monthly session duration of all users (minutes) / Total number of users. How easy was it for you to upgrade your plan? "I love data"; "What data do you have?"; "I don't care about your opinion, what is the data?"; "We make data-driven decisions". You do have to take a bit of a broad view of it as some marketing channels are for branding, and some take a bit of time to pick up like organic search but you need to set revenue-per-dollar-spent goals and expectations and monitor them closely, taking into consideration, of course, the assisted conversions., Its helpful because, at the end of the day, this is the metric that keeps a business afloat. Customers that are generally happy with your product, but feel its missing a few elements to make it perfect. But more so than others metrics, NPS comparisons can be made to rank your overall performance too. Customer Effort Score (CES) is a metric that determines how much effort is required by customers to perform a specific action.. For our team at Eater Creative, one of our most important KPIs is contact form conversion, writes Benjamin Surman. c) use our ready-made metrics and KPI frameworks to drive excellence in your B2B SaaS product. Every B2B marketer should be tracking leads and differentiating between marketing qualified leads (MQLs) and sales qualified leads (SQLs), Lauren Walter of Search Optimisim thinks. A Product Managers job is simple. Therefore in terms of product management, the direction of your churn rate can have a lot of importance too. Theres no official benchmark to follow, but by tracking the % change over time, you can often tell how recent changes to your product are being received by customers, and how easy they find the software to use. Editors note: Want to get notified when important KPIs trend up or down? Successful B2B marketing teams use . According to Databoxs own Benchmark data, the median value of Sessions for B2B websites is 3.6K. This article is designed to make it simple for you to: a) identify the qualities of a good metric, b) put in place a framework to effectively track your metrics and. In B2B marketing, leads is our most important KPI, writes Selbys Stan Tan. We've built a B2B SaaS product metrics dashboard template you can use. Length of use - How much time do they spend using the solution? Improving activation is widely regarded as one of the best ways to improve monthly recurring revenue (MRR). Think we missed one? What numbers should you aim for when setting goals for your B2B website? Or equally, its essential for users of ProdCamp to go ahead and create a roadmap!With that in mind, below is a general framework, but alter it as you see fit. When you optimize for qualified leads and then closed deals, you focus your efforts on marketing techniques and channels that generate actual profit.. Metrics only make a difference if they can drive change. Opinions expressed are those of the author. The New B2B Marketing Metrics: A 5-Step Action Plan. For example, well build tables with all the landing pages housed in the /solutions, /features and /blog subfolder so we can align the appropriate conversion goals to their respective content., For example within the /solutions and /features subfolders, well show trial signups from organic traffic for each landing page, and how that is trending. Need help using Databox? For a coffee shop, its a disaster.. Is it useful? And a Product Manager's ability to drive change within an organization relies on being able to influence people. Cross-referencing data from product analytics with acquisition sources helps you identify and optimize the most profitable channels and bring down acquisition costs. |Jul 14 2017. B2C metrics reside on an exponentially larger scale. The reason that this is important is due to its impact on your conversion funnel. One disadvantage of this metric is that it may require you to manually collect the data if your support software doesnt automatically measure it for you. Hence, lead is our #1 metric we measure., Danyal Effendi of PureVPN agrees: Leads drive sales; the greater the number of leads the higher the chance of big sales number., Romain Chiaramonte of Wild At Heart agrees: Clearly, its mandatory to track number of leads per day, and, score of each page per lead in order to only focus efforts (SEO) towards these key pages. B2C product vs. B2B product metrics. Gain insights from 3 companies, including Airbnb, that used NPS best practices for revenue growth. By monitoring the key actions being taken by users, you can see if changes youre making to your product make it quicker for users to find significant value and become stickier to your product over time. Is it useful? You're in serious trouble if you're not tracking feature usage, and it's where a product analytics platform like PostHog is vital. Churn rate calculations can be relatively complex. When you identify the specific metrics that matter to your company and its goals, and then overlay a strategic approach to analyzing those metrics, your entire C-suite will appreciate it when you successfully deliver a tailored marketing program that achieves objectives that ultimately drive profit. The bottom line is clear: measuring and improving the customer experience is not only good for customers, it's good for business. Actionable: Can you easily identify actions to take when you see a drop in a metric? B2B marketing metrics and KPIs help marketers measure results and showcase the impact that B2B marketing is making for their company in a way stakeholders will appreciate. While you can find benchmarks online of an average B2B SaaS having a 10-20% DAU/MAU, because of the considerable debate behind this metric, its considered to be more valuable to track the percentage change in DAU/MAU over time rather than benchmarking the raw figure against other companies. If I have to pick just one KPI its revenue generated per dollar spent, says Dave Davis of Beanstalk Internet Marketing. New user activation is similar in purpose to adoption rate, but it's more specific. Is it useful? To make life easy for you, weve created a few ready-made frameworks that can be implemented within most B2B SaaS companies. Accelerate your thought leadership by contributing to our blog. Check that VTL!, TradeWheels Anosha Imran agrees: Website visitors are potential sales leads. Software like Amplitude should be able to display this for you.. moment, the more likely they are to convert. If you want to discover how visitors engage with your website, and which content drives the most engagement and conversions, there are several on-page events and metrics you can track from Google Analytics that will get you started: Now you can benefit from the experience of our Google Analytics experts, who have put together a plug-and-play Databox template showing the most important KPIs for monitoring visitor engagement on your website. The Most Important Product Management Metrics to Track B2B Product Management Metrics to Share With Your External Dev Partner Final Thoughts Consider Inoxoft Your Trusted Partner It's thorny to estimate what features you need to enhance the user experience and increase product success. For example, for the project management tool Trello a key action could be every time a user adds a card or creates a new board. Check out our open positions. Let's break it down: Is easy to understand? Product metrics are essential for understanding the overall health of your product and areas of weakness, and they also help guide your product decisions. Do I qualify? All of these questions steer optimization for our landing pages and form a foundation for future marketing strategies., Zsigray continues: If a specific piece of content is under-performing, then the industry may not be looking for that type of information and our energy ought to be focused elsewhere.. Dive into all things business analytics, KPIs, and Databox. Remember, much like there is always a natural level of unemployment in an economy, there will always be a level of churn as you cant retain all your customers forever. By working at this KPI, youll be able to better quantify the effectiveness of your marketing department, and also save your salespeople a ton of work, Donaghue says. This is important because a customer could have a positive experience with one specific feature of your product, yet feel far less positive about another. On the surface product analytics for products serving business customers and users seems straight forward. Here's an example of how this works. The definition of product experience may vary slightly between B2B and B2C products. Try the NPS survey app! Product metrics capture how people use your product and how that impacts your business. You may also find the following guides useful: How to achieve B2B product market fit: There's no universal standard for achieving market fit, but this guide introduces heuristics to help you find it, Finding your north star metric: All SaaS products can benefit from a north star metric and this guide will help you find one, How to get Stripe payment and revenue data: This tutorial helps you get the data about your customers (and revenue) from Stripe you need to calculate some of these metrics, The common metrics used by B2B SaaS companies, B2B SaaS product metrics dashboard template, How to get Stripe payment and revenue data. Check out the definitive list of marketing KPIs all marketers should be tracking according to 400+ marketing professionals. Trying to do this with Google Analytics is a losing battle. CES surveys are best deployed across all the areas of your product where key actions are taken by customers.. KPI stands for key performance indicator it's a quantifiable metric that helps you measure how well you're meeting your . Important factors to consider when building your B2B GTM strategy include: . It's worth monitoring for big spikes in requests, but it can be misleading for all sorts of reasons. See how other businesses are improving performance with Databox. Join our international team of Playmakers working to make business analytics easier for everyone. Scenario 1: If your main KPI is improving but your influencer metrics arent then it either suggests a time-lag in the data or that theres something you arent measuring thats more important to your customers and is affecting your KPI. With longer sales cycles, customers have an expectation of speaking to a representative before making a large purchase. And they need to know how many and how quickly prospects turn into paying customers: revenue. Sales KPIs versus sales metrics It shows how well laid-out your funnel is. Everyone knows you've got to measure stuff to succeed. The retention rate formula is ((customers at end of period - new customers) / customers at start of period) x 100. Go-To-Market Strategy for B2B SaaS Companies | KPI Sense Measuring essential KPIs of multiple activities is critical for the success of B2B product marketing campaigns. The Metrics of B2B Product-Market Fit Validate the pilot or product metrics: Time to activation - How long does it take for end-users to start using your product? As such, CES provides an ideal way to identify and address the problem areas of your product, leading to higher overall product satisfaction. Then, they are asked to provide a rating between 0-10 to score their answer, with 10 meaning they are most likely to recommend the product and 0 being the least likely to recommend it. Therefore a B2B SaaS with healthy levels of engagement should see users frequently logging in to their account. Specific: Some broad trends are useful, but we recommend metrics that measure specific actions. On the other hand, a significant decrease is normally a prelude to an increase in churn. 1. Brand-oriented metrics measure success in terms of awareness, relevance and differentiation. Specific metrics are the most actionable metrics, too. For some companies, the average number of key actions per user per month is a better way of seeing how much value a user is getting from your product, compared to simply how much time theyre spending with it. The B2B SaaS customer success metrics cheat sheet Top metrics for B2Bs to track Top marketing metrics 1. According to Databoxs own Benchmark data, the median CTR value for all business types is1.99%. Forbes Agency Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Use feature flags to test and run experiments before rolling features out. It also shines a light on SEO practices that brought the most visitors.. The Best B2B SaaS Metrics and KPIs to Measure Product Success - ProdCamp It's easy to think support requests are a bad thing, but it really depends on the circumstances. Then, for the /blog subfolder, we might show newsletter signups from organic traffic for each landing page.. Once you have the raw figures, you should track the % change over a given time period. . As a side note, if your software revolves around making things quicker or more efficient, you may wish to choose a different results-based KPI for product engagement. You will want to augment and adapt these for your specific needs, but. But, you also want to actively work to improve this number. But according to T3s Jordann Wilson, every B2B company should be tracking the success of their phone calls in addition to online forms, ecommerce purchases, etc., For our B2B clients, we typically see a 3:1 ratio for lead generation through the phone. You now need to reevaluate your page content and design., Robbie Richards adds that you can also segment this landing page traffic to show data from organic users, which will give you insight into which content assets and topics are driving the most value for your business., As an SEO agency that works primarily with B2B SaaS companies, one way we segment this KPI further is to break out the landing page reports by subfolder.