Brian Gatti, partner at Inspire, was recently quoted in an article by B2B News Networks on how to best analyze channel performance and B2B channel metrics.
In the article, Brian writes about how it’s possible to evaluate the performance of a specific channel even if you don’t have clean tracking available for all stages of the channel.
Before B2B marketers can ever hope to analyze the sales data from their channel partners first they must know what to measure and how to benchmark it. For example, the ultimate statistic remains profitability per channel, and to understand it you must evaluate all the inputs that influence its output, according to Brian Gatti, partner and marketing consultant at Inspire Business Concepts, a marketing strategy and planning company.
“Each input needs to be looked at from three dimensions: the extent to which it impacts the output, the extent to which you can influence it and the extent to which you can measure it effectively,” Gatti says. “Also, understand acceptable margin of error and how much that margin of error actually costs. These are not necessarily in tandem—a higher margin of error may not necessarily mean a higher financial risk if the metric evaluated has a lower impact than another with a high degree of certainty.”
A high coefficient of correlation serves as the secret sauce in sorting this data. If B2B marketers can understand the relationship of their channel sales outputs vs. the inputs, they can function effectively whether or not they have perfect data, according to Gatti. For more on this, he recommends looking up what influential mathematician Karl Pearson has to say about it.
“With this number and the margin of error based on the sample size of clean data, you can start to build a model,” Gatti says. “The more data you collect, the better your analysis may become.”
Here’s the rest of the article of you’d like to read more.