KPIs 40-40-20 Rule1
30-20-10 Rule 2 In the world of outbound response marketing, this rule has been validated countless times over the decades. While the numbers are never exactly right, they provide good directional insight for your campaigns. Are you getting your fair share of immediate-, short-, and longer-term opportunities?
If your marketing efforts are concerned with generating sales leads, then one of the longest-standing rules of response marketing should interest you:
40% 40% 20%
version 1.1 / June 2011
Key Performance Indicators for Marketing Reference Card
of your marketing success is based on how well you’ve targeted your AUDIENCE (either by media selection, marketing channel, or by the list you’ve acquired). lead generation program
of your marketing success is based on your OFFER (what incentive you are using to produce a response from your prospect).
30%
20%
under 6 months
6-12 months
10% over 12 months
business growth
of your marketing success is based on how relevant your CREATIVE is to your target audience. 30% of all inquiries will buy from some vendor within 6 months
While you still need to achieve break through, this rule explains why a well-crafted letter, put into the hands of a highly qualified prospect, can produce excellent response rates.
Campaign Performance (conversion rates) 3
20% of all inquiries will buy from some vendor between 6-12 months
10% of all inquiries will buy from some vendor after 12 months
Response Rates by Marketing Channel 4
description
LOW
%
MED
%
HIGH
%
campaign target market
1,000
100%
1,000
100%
1,000
100%
10
1%
50
5%
90
9%
Marketing Channel Suspect Pool 1 Inquiries
responds to campaign
2 Inquiry to Qualified Lead
signs-up for offer
0.40
4%
5
9%
14
15%
3 Qualified Lead to Prospect
meets BANT criteria*
0.11
28%
2
39%
7
50%
4 Prospect to Sale
commits to purchase
0.03
23%
1
29%
2
35%
* BANT criteria = Budget, Authority, Need, and Timeframe
low
high
1.2%
4.8%
0.03%
0.05%
8.7%
13.4%
14.7%
29.6%
Email: Clickthrough
2.3%
8.0%
Banner Ads: Clickthrough
0.1%
2.4%
Paid Search: Clickthrough
0.1%
16.9%
Direct Mail Print Outbound Telemarketing Email: Open
* BANT criteria = Budget, Authority, Need, 5 and Timeframe
Email Performance by Industry Group Industry Group Business Products & Services - General Business Publishing/Media - General Consumer Products - CPG Consumer Products - General
Open Rate
Click Rate
21.9% 18.0% 18.2% 22.4%
4.9% 5.4% 9.0% 6.9%
Industry Group Consumer Products - Pharmaceutical Consumer Publishing/Media - General Consumer Services - General Consumer Services - Telecom
Open Rate
Click Rate
26.5% 16.5% 19.6% 23.4%
8.4% 7.7% 4.2% 5.7%
Industry Group Financial Services - CC/Banks Financial Services - General Non-Profit/Education - General Retail - Apparel
Open Rate
Click Rate
28.9% 34.2% 30.4% 14.5%
7.8% 8.3% 3.1% 4.1%
Industry Group Retail - Electronics Retail - General Retail - Specialty Travel/Hospitality/Services
Open Rate
Click Rate
24.3% 22.1% 18.6% 23.1%
6.4% 7.3% 4.0% 5.0%
© 2011 nuRevenue Partners Inc. www.nurevenue.com
KPIs
version 1.1 / June 2011
Key Performance Indicators for Marketing Reference Card
Search Engine Optimization (SEO) Metrics 6 The information in the charts below is drawn from 2,194 companies, 80% of which have undertaken Search Engine Optimization (SEO) practices. Percentage of inbound website traffic from organic search (n = 2,194 companies)
Search engine ranking based on target keyword usage (n = 2,194 companies)
Percentage of total sales lead volume generated by organic search (n = 2,194 companies)
Quality of leads generated by organic search (n = 2,194 companies)
Greater than page 2 of search results 7%
10% 19%
10%
24%
0-10%
11-25%
23%
Positions 1-3 15% Positions 7-11
The quality is low
76-100%
34%
Page 2 of search results
76-100%
18%
8%
13%
0-10%
15%
22%
These are our highest quality leads
51-75%
51-75% 26-50%
26-50%
Positions 4-6
22% 30%
The quality is mixed
11-25% 26%
70%
34%
Sources The data assembled for this KPI Reference Card is not readily available from any one source. As a result, multiple sources have been used to compile directional benchmarks that should be of value to marketers hoping to compare their performance to broader industry performance. If you have any questions or comments about this data, please feel free to email us at info@nurevenue.com.
3 MarketingSherpa.com, Marketing Benchmark Survey, 2011; Sirius Decisions, Field Marketing 2.0: The Heart of Growing Conversion Rates, 2008; MarketingSherpa.com, Lead Rate Comparisons 2010; Aberdeen Group, Predictive Anayltics - Driving Sales With Customer Insights, 2010; nuRevenue live market data.
1 Russell M. Kern, Sure-Fire Direct Response Marketing, 2001.
4 Epsilon Email Institute, Q4 2009 Email Trends and Benchmark, 2010; MarketingSherpa.com, Marketing Benchmark Survey, 2011; DoubleClick for Advertisers, 2009; MarketingProfs.com, Digital Marketing Factbook, Spring 2010; Direct Marketing Association, Response Rate Trend Report, 2010; MailChimp.com (based on 273 million email results).
2 Adapted from: Bob Stone, Ron Jacobs, Successful Direct Marketing Merthods, 2008; Russell M. Kern, Sure-Fire Direct Response Marketing, 2001; Bob Donath, et al., Managing Sales Leads: How to Turn Every Prospect into a Customer, 1994; Cahners Business Information, 1996; Advertising Research Foundation, 2008.
5 MarketingProfs.com, Email Marketing Factbook, 2010. 6 MarketingSherpa.com, Search Marketing Benchmark Report - SEO Edition, 2011.
Š 2011 nuRevenue Partners Inc. www.nurevenue.com