Demand generation isn’t just about the journey—it’s about the destination. It’s about knowing how to get there and proving that your efforts are worth it.
But tracking and proving demand generation ROI is tricky. In fact, 43% of marketers still struggle to track and measure their metrics effectively.
Where is the challenge?
It boils down to knowing which KPIs to focus on, integrating analytics into the right platforms, and connecting results back to the original goals.
Still, marketers need to track these metrics. Why? Because they reveal the value of your efforts, helping you see what’s working and what’s not.
Let’s get started with the key demand generation metrics you should track over time.
What Are Demand Generation Metrics?
Table of Contents
- 1 What Are Demand Generation Metrics?
- 2 Why Are Demand Generation Metrics Important?
- 3 What Are the Key Demand Generation KPIs to Track?
- 4 How to Measure Demand Generation Metrics
- 5 Best Practices for Leveraging Demand Generation Metrics
- 6 Track, Analyze, and Optimize Your Metrics to Improve Your Sales
Demand generation is all about creating and nurturing interest in your product or service. The goal? Turning your product into something prospects actively seek and driving high-quality inbound inquiries that convert into sales.
It involves a mix of marketing activities, including:
Demand generation refers to generating and nurturing interest in your product or services. It aims to turn your product into a top demand driver and create high-quality inbound inquiries and sales. It encompasses marketing activities such as:
- Content Marketing and SEO Strategies
- Social Media Outreach and Influencer Collaborations
- Targeted Email Campaigns
- PR Initiatives with Sponsored and Guest Content
- Paid Media and Branding Campaigns
- Virtual Events and In-Person Conferences
Demand generation metrics measure the effectiveness of these efforts. They show how well your campaigns are working—whether your audience is engaged, how aware they are of your brand, and where you can improve. These numbers act as your starting point, allowing you to fine-tune and optimize your campaigns for better results.
Why Are Demand Generation Metrics Important?
Demand generation metrics provide direction in a sea of assumptions. They tell you what’s working and what isn’t, saving you from guesswork.
But there’s more to it than that…
These metrics also help maximize your ROI.
Wondering how?
By identifying which channels or strategies yield the best results, they ensure your time and resources are spent on efforts that deliver the greatest returns.
Additionally, they strengthen the relationship between your marketing and sales teams. When both teams work toward shared goals, conversions skyrocket.
Finally, demand generation metrics allow for better forecasting. With measurable data, you can predict outcomes with greater accuracy, enabling smarter campaign planning.
Simply put, these metrics ensure you’re not flying blind—they’re your roadmap to success.
What Are the Key Demand Generation KPIs to Track?
1. Website Traffic Metrics
High website traffic—sounds like a success, right? Not necessarily. While traffic is a great indicator of your campaign’s reach, high numbers alone don’t guarantee results.
Why? Because much of it could be low-quality traffic. High bounce rates and attribution issues can further distort the picture.
The Solution:
Focus on quality over quantity. Pair metrics like session duration, conversions, and traffic sources to get a clearer picture of performance. Filter out bot traffic and prioritize high-performing channels.
Remember, traffic metrics are just the starting point—the real value lies in turning visits into meaningful actions.
2. Lead Generation Metrics
Leads are the lifeblood of demand generation. That’s where you gain insights into how effective your campaigns are in attracting potential customers.
No doubt, high lead volume is encouraging. But success lies in the quality of those leads—how likely they are to convert into paying customers.
Metrics to Measure:
- Number of Leads: How many potential customers enter your funnel?
- Cost Per Lead (CPL): How efficiently are you generating leads financially?
- Lead Source: Which channels are delivering the highest-quality leads?
Focus on these metrics to ensure your efforts are attracting the right prospects.
3. Conversion Rates
Conversion rates are the ultimate report card for your marketing efforts. They reveal how well your strategies turn interest into action.
Metrics to Measure:
- Landing Page Conversion Rates: How many visitors complete actions like filling out forms?
- Email Conversion Rates: How effective are your email campaigns at driving engagement?
- Call-to-Action (CTA) Conversion Rates: Are your CTAs strong enough to motivate action?
Conversion rates don’t just showcase successes—they highlight bottlenecks in the buyer’s journey. By identifying and addressing these roadblocks, you can create a smoother path to sales and revenue.
4. Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs)
Not all leads are created equal, and that’s where MQLs and SQLs come in.
- MQLs: These are leads that have shown interest, such as downloading content or engaging with campaigns, but aren’t yet ready for direct sales outreach.
- SQLs: These leads have been vetted by the sales team and demonstrate a strong intent to buy, making them high-priority prospects.
Tracking these metrics ensures marketing focuses on nurturing potential buyers, while sales teams zero in on conversion-ready leads. Together, they create a seamless and efficient sales funnel.
5. Pipeline Velocity
Pipeline velocity measures how quickly leads move through the funnel. It combines key components like Average Deal Size, Win Rate, and Sales Cycle Length.
Where’s the challenge?
It lies in identifying bottlenecks that slow down the funnel.
What could be the reason?
Misaligned processes or unqualified leads are common reasons.
Solution?
Focus on improving lead qualification, aligning sales and marketing, and optimizing workflows. Regularly analyze pipeline velocity—this is a great way to identify slow points and enable faster revenue realization without sacrificing deal integrity.
6. Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) tells you how much you’re spending to acquire each customer. It’s a crucial metric for understanding the financial efficiency of your demand generation efforts.
Formula:
CAC = Total Marketing and Sales Expenses ÷ New Customers Acquired
Myth: Lower CAC always indicates success.
Reality: Lower CAC might mean reduced investment in quality leads or long-term value.
The Solution: Balance CAC with Customer Lifetime Value (CLV) to ensure sustainable profitability. Target high-value prospects and continually refine your marketing and sales processes to improve efficiency.
How to Measure Demand Generation Metrics
Tracking the right metrics is only half the battle. To measure them effectively, you need the right tools and strategies.
- Leverage Marketing Automation Platforms: Use tools like HubSpot or Marketo to simplify lead tracking, scoring, and nurturing.
- Use Analytics Tools: Platforms like Google Analytics or Mixpanel provide detailed insights into traffic and engagement.
- Adopt a CRM System: Software like Salesforce helps track leads throughout their journey, offering a unified view.
- Create Unified Dashboards: Tools like Tableau or Power BI allow you to visualize data from multiple sources in one place.
Best Practices for Leveraging Demand Generation Metrics
Don’t Overtrack Metrics: Tracking too many KPIs can overwhelm teams and dilute focus. Instead, identify a few key metrics tied directly to your business goals.
Focus on Lead Quality Over Volume: A high volume of low-quality leads clogs your funnel without driving results. Prioritize qualified leads by using robust criteria like MQLs and SQLs.
Trust Predictive Analytics, but Validate: While predictive tools provide great insights, they’re not always 100% accurate. Use them as guides but validate predictions with real-time data and continuous analysis.
By following these practices, businesses can drive smarter strategies, optimize their funnels, and maximize ROI effectively.
Track, Analyze, and Optimize Your Metrics to Improve Your Sales
Knowing the right metrics to track in your demand generation campaign is key to improving your marketing and sales results. If you’re finding it challenging to generate sales-qualified leads, it might be time to refine your marketing approach.
Start by focusing on the KPIs that matter most to your efforts. Want to learn more? Reach out to us at Only B2B—we’re here to help!
Vikas Bhatt is the Co-Founder of ONLY B2B, a premium B2B lead generation company that specializes in helping businesses achieve their growth objectives through targeted marketing & sales campaigns. With 10+ years of experience in the industry, Vikas has a deep understanding of the challenges faced by businesses today and has developed a unique approach to lead generation that has helped clients across a range of industries around the globe. As a thought leader in the B2B marketing community, ONLY B2B specializes in demand generation, content syndication, database services and more.
