How do you measure the ROI of a product marketing function?
Ultimately, the ROI for product marketing is revenue growth. But there are some in-process KPIs that you can set to measure the impact of product marketing. For example:
- Content contribution can be measured with number of MQLs converted to SQLs from digital channels. Also, with increased website traffic within a time frame due to SEO/SEM initiatives.
- Sales enablement contribution can be measured by reduction in the average time it takes to close a deal
- Product launches can be measured by adoption of new features within a time frame
- GTM messaging can be measured with reduction in customer acquisition costs
This one gets a lawerly response - it depends!
I like to use the following:
attach rate as a metric for product adoption
reactivations for product engagement
product sign-ups for conversion
upsell and expansion revenue
NPS for sentiment
For example, for a new organization that is trying to find product market fit - if you can attribute product sign-ups to a PMM activity like website optimization or launch program, you'll have a clear and measurable way to show ROI towards a larger company initiative.