AMA: Eightfold Global director of demand generation, Carlos Mario Tobon Camacho on Demand Generation KPI's

ROI and marketing attribution is the most challenging KPIs for startups in the technology space; most of these companies do not measure CLV and instead, they measure results on an annual basis, depending on factors such as average sales cycle, average deal size and market maturity, reporting returns of marketing investment in the short term is challenging. One important KPI that demand generation teams may overlook in fast-growing technology companies is the customer lifetime value (CLV). CLV is a metric that calculates the total amount of revenue a customer is expected to generate for a company over the course of their relationship. It takes into account factors such as customer acquisition cost, average purchase value, and customer retention rate, and provides a more accurate picture of a company's revenue potential than simply looking at short-term revenue or leads generated. By focusing on CLV, demand generation teams can prioritize their efforts on acquiring high-value customers who are more likely to generate long-term revenue for the company. They can also identify areas where they can improve customer retention and increase the overall value of each customer. Overall, CLV can provide a more comprehensive and strategic view of a company's revenue growth potential and help demand generation teams make more informed decisions about their marketing and sales strategies.

Understanding what factors influence your company's buyer cycle is the first step, including the company's goals, market, and target audience. 1. Define your goals: Start by understanding the goals of your company and how demand generation fits into those goals. Are you trying to increase revenue, expand your customer base, or drive more engagement or a mix of them? Your goals will guide your metrics. e.g. for an early-stage startup, it is more important to create awareness and build a marketable database, therefore account engagement and lead generation metrics (# of leads, # of MQLs, # of SALs and account engagement share) are going to be very important. On the other hand, for a more mature company, revenue or margin metrics could matter more (ROI of marketing spend, attribution models, ABM engagements) 2. Identify your target audience: Next, you need to understand your target audience and what they care about. This will help you identify the metrics that matter most to them and the channels that will be most effective in reaching them. e.g. In a technology company with sales cycles longer than 12 months and large buyer's committees, you will need to define audiences considering job titles and seniority and target them with different types of content on different channels based on their preferences. Each campaign based on the audiences and tactics will require different metrics. 3. Identify your channels: Once you know your audience, you can identify the channels you will use to reach them. This may include social media, email marketing, paid advertising, or other channels. Each channel will have its own set of metrics that you can use to measure success. 4. Determine the metrics: Based on your goals, target audience, and channels, you can determine the metrics that you will hold demand generation accountable for. Some common metrics include: * Lead generation: This measures the number of leads generated by your demand generation efforts. * Cost per lead: This measures the cost of generating a lead, and can help you optimize your spending. * Conversion rates: This measures the percentage of leads that convert into customers or make it to different stages of the sales funnel. * Customer acquisition cost (CAC) Set targets: Once you have identified the metrics you will track, you need to set targets for each metric. These targets should be realistic, achievable, and aligned with your overall goals. Research benchmarks from companies in your industry and similar size. 5. Monitor and optimize: Finally, you need to monitor your metrics regularly and optimize your demand generation efforts based on the data you collect. As the business grows and market conditions change, so will your metrics. Overall, the process for figuring out which metrics to hold demand generation accountable for requires a deep understanding of your company's goals, target audience, and channels. The metrics that matter most and drive growth and success vary by industry, company/market maturity and so on, so always review your company's business model and be flexible to adapt and change. 

As a first demand generation hire at a startup, some KPIs that you could own are: 1. Lead generation: This KPI measures the number of leads generated through marketing campaigns, events, or other channels. Depending on your market and industry, you may want to consider measuring results from your target account list. 2. Conversion rates: This KPI measures how many leads are converted into paying customers, or at different stages of the funnel. 3. Cost per lead: This KPI measures the cost of acquiring each lead, which helps you optimize your marketing spend and allocate resources more efficiently. 4. Website traffic: This KPI measures the number of visitors to your website and can indicate the effectiveness of your SEO, content marketing, and other inbound marketing efforts. 5. Social media engagement: This KPI measures the level of engagement on your social media platforms, including likes, comments, and shares. Remember that the specific KPIs you own may vary depending on your company's goals and the resources available to you. 

Setting KPIs (Key Performance Indicators) for a new start-up in the technology industry can be challenging as there may not be a lot of historical data to use as a reference point. However, here are some steps to follow when setting KPIs for your new start-up: 1. Identify your business objectives: Start by identifying your overall business objectives. This will help you determine what you need to measure to ensure you are making progress toward your goals. 2. Determine the most critical metrics: Identify the most critical metrics that will help you measure progress toward your objectives. These may include metrics such as customer acquisition, revenue, user engagement, and product development. 3. Look for industry benchmarks: Research industry benchmarks for your key metrics. This will help you determine what is considered successful in your industry and help you set realistic targets. 4. Set targets: Based on your business objectives, the critical metrics you have identified, and industry benchmarks, set targets for each metric. Make sure your targets are specific, measurable, achievable, relevant, and time-bound (SMART). 5. Review and adjust: Review your KPIs regularly to ensure you are making progress towards your business objectives. If necessary, adjust your targets based on your performance and any changes in your business environment. Remember, KPIs should be aligned with your overall business objectives and should be regularly reviewed to ensure they remain relevant and effective. If there are not reliable benchmarks, you can start by making minimum viable investments of different campaigns/channel and these results will become your KPIs.

Here are some examples of good OKRs for a Demand Generation team: 1. Objective: Increase qualified leads by X% Key Results: * Increase website traffic by Y% * Increase conversion rates on landing pages by Z% * Increase the number of demo requests by Y% * Implement a new lead scoring model to prioritize leads for sales team follow-up 2. Objective: Improve marketing funnel efficiency Key Results: * Reduce customer acquisition cost by X% * Increase conversion rates at each stage of the funnel by Y% * Implement new email nurturing campaigns to engage leads who are not yet ready to purchase 3. Objective: Expand market reach Key Results: * Increase website traffic from target industries by X% * Develop a content marketing plan to target new buyer personas * Expand social media presence to increase brand awareness in new markets * Add to your database a number of new contacts/account from a new audience 4. Objective: Drive revenue growth through demand generation Key Results: * Increase marketing-sourced revenue by X% * Implement new ABM (Account-Based Marketing) campaigns to target high-value accounts * Optimize the sales funnel to reduce sales cycle time and increase deal velocity OKRs should be specific, measurable, achievable, relevant, and time-bound (SMART). By setting goals that are aligned with the company's overall objectives, the Demand Generation team can help drive growth and success for the business.