The team moves beyond surface-level KPIs like open and click rates. They measure success by its contribution to broader business objectives: generating more value with less cost and investment. This focus on operational efficiency ensures marketing activities are directly tied to tangible financial outcomes and long-term customer value.
The 'MQL death cycle' is over. Forward-thinking marketing organizations should align around Net Annual Recurring Revenue (Net ARR) as their ultimate measure of success. This metric, which combines new customer acquisition with retention, forces a focus on the entire customer lifecycle and proves marketing's contribution to sustainable business growth.
Brand campaigns reach the 95% of buyers not currently in-market. Instead of relying on vanity metrics, Square ties this investment to business outcomes by tracking the subsequent lift in organic traffic, which they've found converts better than paid channels.
Instead of viewing them as separate efforts, businesses should link customer retention and acquisition. By unifying data to better re-engage existing customers via owned channels like email and SMS, brands increase lifetime value. This, in turn, reduces the long-term pressure and cost associated with acquiring entirely new customers.
Focusing on email open rates can lead to clickbait subject lines and weak copy. Instead, orient your entire outreach strategy around getting a reply. This forces you to write more personalized, engaging content that addresses the recipient's specific pain points, leading to actual conversations, not just vanity metrics.
For a legacy company like Nestle, the business case for data unification and digital tools is not a one-time approval. It's an ongoing process that must be defended every quarter and year. This treats digital investment as a continuous commitment that must consistently prove its value, not a project with a defined end.
To evaluate AI's role in building relationships, marketers must look beyond transactional KPIs. Leading indicators of success include sustained engagement, customers volunteering more information, and recommending the experience to others. These metrics quantify brand trust and empathy—proving the brand is earning belief, not just attention.
A common OKR failure is assigning teams high-level business metrics (like ARR) which they can only contribute to, not directly influence. Success requires focusing on influenceable customer behaviors while demonstrating how they correlate to the company's broader contribution-level goals.
Escape the trap of chasing top-line revenue. Instead, make contribution margin (revenue minus COGS, ad spend, and discounts) your primary success metric. This provides a truer picture of business health and aligns the entire organization around profitable, sustainable growth rather than vanity metrics.
Open and click rates are ineffective for measuring AI-driven, two-way conversations. Instead, leaders should adopt new KPIs: outcome metrics (e.g., meetings booked), conversational quality (tracking an agent's 'I don't know' rate to measure trust), and, ultimately, customer lifetime value.
Shift the mindset from a brand vs. performance dichotomy. All marketing should be measured for performance. For brand initiatives, use metrics like branded search volume per dollar spent to quantify impact and tie "fluffy" activities to tangible growth outcomes.