As we provide benchmark studies for SiriusDecisions clients, we often see organizations struggle to measure marketing’s contribution to, and influence on, sales pipeline.
Summarized and condensed...
As a first step toward capturing these key performance indicators, we walk clients through a model that breaks down typical marketing contribution and mix based on three go-to-market strategies: direct enterprise accounts, inside commercial accounts, and small-and-medium-sized business (SMB)/channel accounts.
Tier 1: Direct Enterprise Accounts
Organizations targeting large enterprises are already familiar with the potential clients that exist in this saturated space, so it’s difficult for marketing to source new leads. Marketing spend as a percentage of revenue is often fairly small, usually less than 5 percent.
Tier 2: Inside Commercial Accounts
For organizations focusing on mid-size accounts (which we define as having 101 to 1,000 employees), marketing spend, contribution and mix begin to shift. The percentage of revenue spent on marketing tends to increase to 20 to 30 percentage points in comparison to Tier 1 accounts.
Tier 3: SMB/Channel Accounts
In this segment, organizations spend 25 to 40 percent of revenue on marketing.
More details to each tier are in the post, so please click through. Note Tier 3: you better have the margins in place, and you need to have a cost effective digital marketing and processing structure in place to squeeze out the costs.