Have you ever wondered how to measure the effectiveness of your marketing performance ?
Traditional metrics such as number of leads, cost per lead, clicks, and CTRs are all useful for measuring lead generation and performance marketing. But when it comes to measuring how these leads convert into revenue, these metrics can fall short. That’s where the HIRO method comes in!
Today, we’re going to look at one of the newest metrics on the block – HIRO, or High Intent Revenue Opportunity. We’ll explain what it is and how it differs from traditional performance marketing metrics, as well as how you can use it to measure your performance effectively.
The HIRO (High Intent Revenue Opportunity) Pipeline
HIRO is a standardized metric that measures how well your inbound performance marketing leads are converting into pipeline. It’s measured and defined as a pipeline that Sales wins at >25%. This means that you’re not only looking at how many leads you generate but also at how effectively they convert into sales opportunities.
What makes the HIRO method so powerful is that it aligns with good business outcomes by ensuring that your performance marketing efforts are generating real revenue. By using the HIRO method, you can ensure that you’re getting maximum ROI on your performance marketing campaigns.
How Does HIRO Differ From Traditional Metrics?
Traditional performance marketing metrics are focused on lead generation inside an ad platform and include number of MQLs/leads generated, cost per MQL, CPM/CLICKS/CTR etc. However, these metrics don’t always align with good business outcomes and can cause problems like leads not turning into revenue. That’s why HIRO was developed – to measure performance based on actual revenue generated.
In addition to measuring the effectiveness of individual campaigns, the HIRO method also allows you to measure overall marketing performance over time in revenue numbers.
By tracking changes in your HIRO score over time, you can identify trends in your performance marketing efforts and make informed decisions about which tactics are working best for your business. Furthermore, tracking changes in your HIRO score over time can help you better understand customer behaviour and improve customer experience and create immaculate sales and marketing alignment as both departments are equally responsible and accountable towards the same outcome.
Setting Up HIRO For Performance Measurement
To use HIRO for measuring your performance marketing you need to first set up a system that will track each lead from start to finish i.e. from first touch/source to last touch/ conversion point.
You will need to have a well defined sales process broken up into different stages as well.
Once this system is in place you can start measuring your performance using the HIRO metric – i.e., tracking which stage converts into opportunities with a close rate greater than 25% – so you know exactly which sources are generating high-quality leads that turn into pipeline and eventually revenue.
Measuring the success of performance marketing campaigns is critical for any business looking to maximize their ROI from their digital efforts. The traditional metrics used to measure lead generation can be useful but don’t always align with good business outcomes or turn into real revenue. That’s why it’s important to use a metric such as HIRO (High Intent Revenue Opportunity) Pipeline that is designed specifically for measuring conversions into pipeline and sales opportunities. By using this metric, companies can ensure they are getting maximum ROI on their digital efforts while also gaining a better understanding of customer behaviour and improving customer experience over time.